Administration - Jon Haukaas, Director of Public Works
Title
Title
Authorize Purchase of Water Treatment Chemicals for 2022
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Executive Summary
Staff recommends authorizing the purchase of the water treatment chemicals from Hawkins, Inc. in the amount of $502,954.75.
Background
Staff received two bids for 2022 water treatment chemicals. The requested quantities for chemicals in 2022 is significantly higher than in previous years due to bringing the new Water Treatment Plant No. 4 online. The COVID-19 pandemic along with staff shortages and transportation issues drastically added to the cost of the chemicals this year. These amounts represent maximum quantities we may need over the course of the year in order to lock-in the bulk purchase pricing. The companies who submitted bids were Hawkins, Inc. and Shannon Chemical Corporation.
Hawkins was the low bidder for the 13 water treatment plant chemicals this year. The chemicals are Hydrofluorosilic Acid, Chlorine- 1 Ton & 150lb Cylinders, Polyphosphate, Zinc Orthophosphate, Sulfur Dioxide - 1 Ton & 150lb Cylinders, Sulfuric Acid, Sodium Hypochlorite, Sodium Permanganate, LPC- 31, Aqua Hawk 301 and Aqua Hawk 375.
The 2022 Water Utility Fund budget, adopted December 6, anticipated an increase in the cost of water treatment chemicals and budgeted a substantial increase (40%) for this line item. However, it is likely that by late third quarter of 2022, actual expenses for water chemicals will exceed the 2022 budget. It is likely then, as 2022 progresses, that a budget amendment will be brought forward to Council for consideration.
Strategic Plan Relationship
This item relates to the well-maintained infrastructure strategic priority by ensuring reliable utility systems.
Board/Commission Review
N/A
Financial Impact
The total chemical bid from Hawkins for 2022 is $502,954.75 to provide all our water treatment chemical needs. Quantities will be purchased and delivered as needed throughout the year. Funding is included in the 2022 Water Fund budget. Last year’s chemical bid was for $382,370.00.
Public Outreach/Input
N/A
Staff Recommendation
Staff recommends authorizing the purchase of the water treatment chemicals from Hawkins, Inc. in the amount of $502,954.75.
Attachment List
Bids