Title
Purchase Supply of Water/Wastewater Disinfectant - Amendment (Ordinance S-49765)
Description
Request to authorize the City Manager, or his designee, to execute an amendment to Agreement 144726, with DPC Enterprises, Inc. to provide additional funding to the agreement. Further request to authorize the City Controller to disburse all funds related to this item. The additional expenditures included in this amendment will not exceed $6,000,000.
Report
Summary
The purpose of this amendment is to request additional spending authority to continue to provide the Water Services Department (WSD) with the supply of water/wastewater disinfectant. The additional funding will provide the ability for WSD to purchase disinfectant through the remaining term of the contract which expires March 31, 2024. Additional funding is required for future orders until this agreement can be re-solicited. The additional funds are needed as a result of the significant increases in commodity pricing for the disinfectant over the past two years.
This agreement is for the as-needed supply of disinfectant for water and wastewater treatment plants, which provide the ability to disinfect drinking water and treat wastewater discharge to state and federal regulatory standards.
Agreement Term
The agreement's term will remain unchanged, ending on March 31, 2024.
Financial Impact
Currently, the authorized expenditure is up to $9,807,572. This request will amend the agreement to increase the not-to-exceed value by an additional $6,000,000 for a new total value of up to $15,807,572. Funding for this amendment is available in the Water Services Department's budget.
Concurrence/Previous Council Action
The City Council approved:
- Chlorine Agreement 144726 (Ordinance S-43355) on March 22, 2017, for up to $4,300,000;
- Chlorine Agreement 144726 (Ordinance S-47419) on April 7, 2021, for an additional $553,000; and,
- Chlorine Agreement 144726 (Ordinance S-48014) on Oct. 6, 2021, for an additional $4954,572.
Department
Responsible Department
This item is submitted by Deputy City Manager Ginger Spencer and the Water Services Department.