Agenda Item: 7(e)
Prepared By: Jeffrey E. Poteet, General Manager, Water & Sewer
Business: City Council Item
Department: Water & Sewer
Subject:
Title
Approval of a Purchase Order Increase to Allied Universal Corporation for Sodium Hypochlorite Supply for Water Treatment Facilities in the amount of $141,650 - Jeffrey E. Poteet, General Manager, Water & Sewer
Body
BACKGROUND:
The City previously approved a purchase order with Allied Universal Corporation for the supply of sodium hypochlorite utilized at the City's water and wastewater treatment facilities. Sodium hypochlorite is a critical chemical used in the disinfection process to ensure compliance with state and federal drinking water and wastewater treatment regulations and to maintain the safe and reliable operation of all treatment facilities.
The original purchase order was budgeted based on a unit cost of $1.54 per gallon. Due to market conditions and supplier pricing adjustments permitted under the contract, the current cost has increased to $1.67 per gallon, representing an increase of approximately 8.4%. In addition to the increase in unit pricing, the South Water Treatment Plant (SWTP) has experienced higher-than-anticipated demand flows, resulting in increased consumption of sodium hypochlorite.
The original purchase order funding for sodium hypochlorite was allocated among the City's treatment facilities based on projected usage for the fiscal year. Since staff's submittal of their budget request, sodium hypochlorite pricing has increased and treatment demand has exceeded original projections, particularly at the South Water Treatment Plant (SWTP). As a result, additional funding is required to maintain adequate chemical inventory and uninterrupted disinfection operations throughout the remainder of the fiscal year.
The SWTP currently has approximately $50,000 available within its chemical budget, as the original purchase order did not encumber the full budgeted amount for sodium hypoch...
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