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ITEM 64
City Council Memorandum Public Works & Utilities Memo No. UA23-030
Date:
September 22, 2022
To:
Mayor and Council
Thru:
Joshua H. Wright, City Manager
Andy Bass, Deputy City Manager
John Knudson, Public Works and Utilities Director
From:
Danny Sargent, Water Systems Manager
Subject:
Purchase of Water Treatment Chemicals
Proposed Motion:
Move City Council approve the purchase of water treatment chemicals, from Thatcher Company of Arizona, Inc., utilizing the Omnia Partners Contract No. 212528, and from Brenntag Pacific, Inc.; Hill Brothers Chemical Company; and Thatcher Company of Arizona, Inc.; utilizing City of Mesa Contract No. 2020135, in a combined amount not to exceed $4,375,516, for a one-year term, August 15, 2022, through August 14, 2023.
Background/Discussion:
These contracts will be used to purchase bulk and packaged water and wastewater treatment chemicals for use at the City's treatment facilities and swimming pools. The Public Works & Utilities Department will use these contracts for water, wastewater, reverse osmosis, and well system treatment. The Community Services Department will use these contracts for swimming pool chemicals. Chemicals used by the Ocotillo Brine Reduction Facility are paid for by Intel.
A related item for purchase of water treatment chemicals also appears on this agenda. Of the two related items, one includes City bid vendors and the other uses cooperative contracts. Use of these two procurement methods collectively provides the City with purchasing flexibility to broaden choices and avoid supply chain issues.
Evaluation:
The recommended contracts have been competitively solicited and awarded. The City has current agreements with Omnia Partners and the City of Mesa allowing for cooperative use of their contracts. Staff recommends the cooperative use of these contracts because it is an effective way to supplement the City's existing chemical contract at competitive prices. Inflation and supply chain issues have taken hold of chemical markets, leading all contractors to request an average of 44% higher prices. These increases are due primarily to raw material shortages and chemical production facility closures. Continued market volatility is also caused by higher wages, fuel and freight costs, and import delays. The amount requested by each cost center has an added contingency escalator to account for volatility in the chemical markets. Additionally, numerous suppliers have been awarded to ensure continuity of operations in the event of a supplier shortage.
Fiscal Impact
Account No.
Fund Name
Program Name
Dollar Amount
CIP Funded Y/N
101.4520.5318.0.0.0
General, Aquatics
Chemicals
$30,183
N
605.3830.5318.0.0.0
Water Operating, Water Tretment
Chemicals
$3,232,514
N
616.3930.5318.0.0.0
WW Ind Treatment, Ocotillo BRF
Chemicals
$1,112,819
N
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