The Public Works Water Treatment Facility uses chlorine in the water treatment process for the City's public water supply. The current contract for this chemical has expired and staff requested bids for a new contract. The contract will be for one year with the option of two, one-year extensions if prices for the chlorine are mutually acceptable to the City and the contractor.

City Council may:

• Approve the bid for the chlorine from DPC Industries, Inc., in the amount of $106,300; or
• Reject all bids and not award a contract to purchase the chlorine. If the Council rejects this bid, chlorine will need to be purchased at market prices multiple times per month as the chlorine cylinders need to be replaced.

Funding is from the Public Works Water Operations and Maintenance budget. Bids were received on July 24, 2018. Two bids were received. The bidding result are as follows:
 

SUPPLIER	UNIT BID $/1-ton cylinder	UNIT BID $/150-lb cylinder
DPC Industries, Inc.	$928.00	$225.00
Thatcher Company, Inc.	$1,198.00	$400.00
Univar USA, Inc.	No Bid	No Bid

 Assuming the City purchases 100 one-ton cylinders and 60 150-lb cylinders per year, the total expense for chlorine would be $106,300.
 

Staff recommends that Council accept the bid from DPC Industries, Inc. to supply the City with chlorine for one year with the option of two, one-year extensions if prices for the chlorine are mutually acceptable to the City and the contractor.