SUBJECT/RECOMMENDATION:
Title
Ratify and confirm a purchase of $73,937.40 and authorize an increase on the future purchase orders to Odyssey Manufacturing Company of Tampa, FL, for Sodium Hydroxide and Sodium Bisulfite, in the amount of $270,000.00, increasing the annual not-to-exceed amount from $440,000.00 to $710,000.00 for the final term of the contract ending on March 20, 2025, and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
Sodium Hydroxide and Sodium Bisulfite are key chemicals used at the City of Clearwater’s potable water treatment plants and water reclamation facilities (WRFs). Sodium Hydroxide is utilized at the water treatments plants to stabilize and increase water pH levels. Sodium Bisulfite is used at the WRFs to dechlorinate water before discharge and prior to reverse osmosis treatment at the RO1 water treatment plant.
On March 3, 2022, Council approved a purchase order to Odyssey Manufacturing in the annual not-to-exceed amount of $400,000.00 with two, one-year renewal options pursuant to ITB 07-22, Sodium Hydroxide and Sodium Bisulfite Aqueous Solution. On February 16, 2023, Public Utilities brought forward an agenda item requesting an increase of $70,000.00 to Year 1, raising the total contract amount to $470,000.00. Additionally, a request was made to add $140,000.00 to Year 2, bringing the total for that year to $540,000.00. The adjustment for Year 2 was made in response to a vendor-requested price increase, which complied with the allowable PPI Index. However, no adjustments were requested for Year 3 at that time.
In the third year of the contract, elevated wastewater influent flows associated with Tropical Storm Debby, Hurricane Helene, and Hurricane Milton, combined with operational challenges at the WRFs, resulted in significantly increased use of sodium bisulfite. While operations are now stabilizing, the WRFs continue to require higher-than-average quantities of bisulfite to ensure compliance. These factors, along with an initially underestimated contract value, have led to the need for a Year 3 contract adjustment.
On January 3, 2025, the City Manager authorized a 10% increase ($40,000.00) to the contract bringing the contract total to $440,000.00. Authorization is requested to add an additional $270,000.00 to the final term of this contract bringing the contract value to $710,000.00 for the term ending March 20, 2025. Of the increase amount requested, $73,937.40 is a ratify and confirm of a purchase that was already made with $196,062.60 will be used for purchases through the remaining term of the contract.
The City is currently reviewing responses from five companies that submitted a bid for both Sodium Hydroxide and Sodium Bisulfite which closed on Thursday, January 16, 2025, and will be bringing a new award forward in the near future for these chemicals.
APPROPRIATION CODE AND AMOUNT:
Enterprise budgeted funds for FY25 are available in various Public Utilities cost centers, cost code 551700 Bulk Chemicals.
STRATEGIC PRIORITY:
Disinfection falls under objectives: 1.3 (Adopt responsive levels of service for public facilities and amenities and identify resources) and 4.2 (Adopt renewable resource usage and waste reduction practices to ensure a vibrant City for current and future generations).
