| | | | | | | | Agenda Item - 4.e.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To: | Scott C. Stiles
| From: | William E. Murray
| Dept.: | City Manager
| Dept.: | Public Works
| Subject: | Authorize issuance of a purchase order to Waterline Technologies Inc., for the purchase and and delivery of sodium hypochlorite for Water Disinfection IFB No. S-1297. (Cost: $150,000) (Action Item) | Date: | 8/9/2022 |
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| | | | | | | | OBJECTIVE
To receive City Council approval to authorize a five-year blanket purchase order with Waterline Technologies Inc. for $150,000 per year for the purchase and delivery of sodium hypochlorite to disinfect the City’s water supply. |
| | | | | | | | BACKGROUND
Sodium hypochlorite is used to disinfect the City’s water system supply and to provide safe and reliable drinking water to the residents of Garden Grove. The City has an existing blanket purchase order in the amount of $50,000 per year that expired June 2022. Recently, the cost of sodium hypochlorite supplies has increased as a result of the local market conditions, supply chain issues, raw material shortages, labor shortages and transportation challenges. |
| | | | | | | | DISCUSSION
IFB No. S-1297 was advertised on June 15, 2022. The proposal document was posted on the City’s website on June 15, 2022, via the Planet Bids on-line bidding system. Two (2) bids were received and opened on July 18, 2022. The Source Selection Committee (SSC) review bids were completed on July 18, 2022. The analysis below indicates the bid pricing:
COMPANY NAME |
UNIT COST |
BRENNTAG PACIFIC |
$4.62 |
WATERLINE TECHNOLOGIES INC. |
$2.43 |
Waterline Technologies Inc. was selected based on the most competitive pricing and their ability to transport frequent, smaller quantities using smaller trucks. Typically, vendors for chemical deliveries utilize 18-wheel trucks, but due to the limited space access within the well sites, smaller delivery trucks are needed to navigate the narrow access roads. Therefore, Staff is seeking a five-year blanket purchase order to allocate an additional $100,000 for a total of $150,000 per year to cover increased costs. This will ensure no interruptions in the day-to-day water supply operations.
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| | | | | | | | FINANCIAL IMPACT
There is no impact to the General Fund. The cost of the sodium hypochlorite supplies are included in the City’s adopted FY 2022-23 Water Enterprise Budget. |
| | | | | | | | RECOMMENDATION
It is recommended that City Council:
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Authorize the Finance Director to issue a five-year blanket purchase order with Waterline Technologies Inc., in the amount of $150,000 per year, for the purchase and delivery of sodium hypochlorite supplies to disinfect the City’s water supply.
By: Robert Bermudez, Water Production Supervisor
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