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Item 1.B.4.
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| City Council Regular | |
| Date: | 08/09/2021 |
| Title: | Bid Award for Chlorine for Water Treatment Plant |
| Presented by: | Debi Meling |
| Department: | Public Works |
| Presentation: | No |
RECOMMENDATION
Staff recommends that Council approve the award for the purchase of chlorine from DPC Industries, Inc. for one year with the option of two, one-year extensions if prices are mutually acceptable to the City and the supplier.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
The Public Works Water Treatment Plant uses chlorine in the water treatment process for the City's public water supply to disinfect the water prior to distribution. The current contract for this chemical has expired and staff requested bids for a new contract. The Public Works Department advertised for bids in the Yellowstone County News and the City's website. Bids were opened on July 27, 2021. The City received one bid for the chlorine from DPC Industries, Inc.
ALTERNATIVES
City Council may:
- Approve the award for the purchase of chlorine from DPC Industries, Inc.; or
- Reject the bid 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 to sufficiently meet demands.
FISCAL EFFECTS
Chlorine is budgeted in the Public Works Water fund. Bids were received on July 27, 2021. Only one bid was received and the bidding result is as follows:
Assuming the City purchases 100 one-ton cylinders and 60 150-lb cylinders per year, the total expense for chlorine would be $169,500.00.
DPC industries has been the City's chlorine supplier for more than 10 years. Compared to the previous contract, 1-ton cylinders have increased by 33% and 150-lb cylinders have increased by 12%. Staff discussed the issue with chlorine manufacturers and the high prices are attributable to supply and truck driver shortages. Staff verified chorine prices with other vendors and found the bid from DPC industries to be reasonable for market conditions. Although, only one bid was received, staff believes the bid for chorine is reasonable for market conditions and is a lower cost than the City would pay without a contract. If the city decides to extend the contract next year, the prices can be adjusted in the market conditions change.
| SUPPLIER | UNIT BID $/1-ton cylinder |
UNIT BID $/150-lb cylinder |
| DPC Industries, Inc. | $1,533.00 | $270.00 |
DPC industries has been the City's chlorine supplier for more than 10 years. Compared to the previous contract, 1-ton cylinders have increased by 33% and 150-lb cylinders have increased by 12%. Staff discussed the issue with chlorine manufacturers and the high prices are attributable to supply and truck driver shortages. Staff verified chorine prices with other vendors and found the bid from DPC industries to be reasonable for market conditions. Although, only one bid was received, staff believes the bid for chorine is reasonable for market conditions and is a lower cost than the City would pay without a contract. If the city decides to extend the contract next year, the prices can be adjusted in the market conditions change.