CITY MANAGER AUTHORITY PROCUREMENT AWARDS
ACTION REQUESTED:
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Approve the award of Option Year One to Contract 19-297, Bulk Magnesium Hydroxide, to CLEAR2O® Inc., for an amount not to exceed $73,502 and for a one-year term
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DEPARTMENT: Water Utilities
SUBMITTED BY: Darrell Blenniss, Director
BACKGROUND:
In November 2019, City Council awarded Bid 19-297, Bulk Magnesium Hydroxide, to CLEAR2O® Inc. for a two-year term, from January 1, 2020 through December 31, 2021, with one, one-year option to extend. The contract requires the vendor to provide bulk magnesium hydroxide at the Springbrook Water Reclamation Center (SWRC). The chemical is required to periodically adjust the pH to maintain optimum treatment in the aerobic sludge digestion process.
DISCUSSION:
Throughout the term of the original 24-month contract, CLEAR2O® Inc. provided good service and met all contract requirements, including but not limited to:
• Magnesium hydroxide quality; and
• timeliness of all deliveries.
CLEAR2O® requested an approximate five-percent increase to $457 per dry ton of solids from $437 due to cost of manufacturing increase and expected increase to freight costs. The increase is strictly a pass through. CLEAR2O was the only bidder in 2019. City staff is recommending approval of the increase. The final contract renewal term is January 1, 2022 through December 31, 2022.
FISCAL IMPACT:
CIP: N/A
Magnesium hydroxide is expensed to the salt and chemicals account listed below. A total of $66,820 is budgeted for the chemical in 2021. Staff will include this agreement in development of the 2022 Budget, which will be proposed to Council later this year.
|
Account Number |
Fund Description |
Total Budget Amount |
|
41251530-541409 |
Water and Wastewater |
$392,898 |