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HomeMy WebLinkAboutStaff Report 148-08TO: FROM: DATE: SUBJECT: City of Palo Alto C ty Manager’s Report HONORA_BLE C!TY COUNCIL CITY I~,~qAGER DEPARTM~ENT: PUBLIC WOPd~, ];’&ARCH 10, 2008 C~:148:08 APPROVA_L OF BLANKET PURCHASE ORDER WITH OLIN Ch~LOR ALKALAt PRODUCTS IN AN AMOUNT NOT TO EXCEED $488,749 FOR THE PURCHASE OF BULK SODIUM HYPOCHLORITE FOR THE WATER QUALITY CONTROL PLANT .a~N~D APPROVAL OF TWO ONE YEAR EXTENSIONS RECOMMENDATION Staff recommends that Council: Approve and authorize the City Manager or Ns designee to execute a blanket purchase order wi_th Olin Ch!or Alkalai Products for the remainder of FY 07-08 for an amount not to exceed $97,750, and for FY 08-09 in an amour~t not to exceed $390,999; and o Authorize the City Manager or _his designee to negotiate and execute two one year extensions to the blanket purchase order for FY 2009-10 and FY 2010-11 in an amount not to exceed $390,999 per year, plus the Department of Labor producer price index for chlorine. DISCUSSION The sodium hypochlorite purchased u_n_der tlfis order will protect the public health by providing disinfection of the Water Quality Control Plant effluent before discharge to San Francisco Bay. A Request for Quotation (RFQ) for the purchase of 12.5% bulk sodium hypochlorite was issued in December 2007. The solicitation was sent to six vendors and four responses were received. The low bidder quoted a unit price of $0.735 per gallon of sodium hypochlorite based on an estimated annual quantity of 484,000 gallons. The estimated quantity was specified for the purpose of determining the lowest responsible bidder, and no guarantee is implied that the exact amount will be purchased. The RFQ fixes the price through June 2009 and establishes a price increase for each of the two optional 12-month extension periods. The extension periods will be on a fiscal year basis; the price increase will be based on the U.S. Department of Labor producer price index for chlorine. The proposed blanket purchase order requires Council approval because the expenditures will likely exceed $250,000 per fiscal year. The bid summary is provided in Attachment A. The Certification of Nondiscrimination is Attachment B. CMR:148:08 Page 1 of 2 The bid su2~an~y is provided ha Attaclnrnent A. The Ce~!ific~2ion of Nondiscrimination is ,a~aclm~ent B. F~SOURCE Ii~4?ACT F’m-~ds have been budgeted for these operational costs in the FY 2007-08 through FY 20!0-tl Wastewater Treatment budgets. Authorization of this blm~ket purchase order does not represent a chmnge toex.~s~mg: ÷: po~,~_c~,,s." ’: :~ This project is exemot_ _~ from the California Enviro_nmaentM Ouaiiey Act t’--’--~-’wr~ ~" ~ pursumnt to Section 15301 of the CEQA guidelines. ATTACH~NTS A~acb~ent A:Bid Summary Aaachment B:Ce~:ification of Nondiscffm~_~haation PREPAID BY: P~C!~ARD Manager, Water Quality GLE?-~\~ ROBERTS Dh’ector of’Pub!ic Works EMILY ~£8 ON Assistant Cigy Mmnager Ci~/~R:148:08 Page 2 0f2 ATTAC~xilV~ENT A cO00 ATTACH-MENT B C.~RT]F{CA’T!ON OF NONDiSCR~M~NAT!ON PROJECT:12.5% BU_P, ,.,,JDIu£,~ HYPOCHLORITE Certification of Nondiscrimination: Certification of Nondiscrimination: As suppliers of goods and!or services to the City of Palo Alto in excess of $5,000, the firm, contractor or individual(s) listed below certify that: they do not and in the performance of this contract they will not discriminate in employment of any person because of race, skin color, gender, age, religion, disabili~, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person; and further certify that they are in compliance with all Federal, State and local directives and executive orders regarding nondiscrimination in employment. Firm: OLIN Chlor Alkali Products DATE: Title of Officer Signing:! ~ Joh~-~.~.~ Schabacker -Business Director CiTY OF PALO ALTO RFQ 125456 PAGE 1 OF 1 Rev. 04/05