SUBJECT/RECOMMENDATION:
Title
Authorize an increase on purchase order to Odyssey Manufacturing Company of Tampa, FL, for Liquid Sodium Hypochlorite, in the amount of $300,000.00 for year three, increasing the annual not-to-exceed amount from $1,200,000.00 to $1,500,000.00 pursuant to ITB 04-23, and authorize the appropriate officials to execute same. (consent)
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SUMMARY:
Liquid Sodium Hypochlorite (bleach) is a disinfectant used at the City of Clearwater’s potable water treatment plants, water reclamation facilities (WRFs), and reclaimed water pump stations to comply with regulatory requirements under the City’s Florida Department of Environmental Protection (FDEP) operating permits.
On January 9, 2023, Council approved a purchase order to Odyssey Manufacturing in an annual not-to-exceed amount of $1,200,00.00 with two, one-year renewal options pursuant to ITB 04-23 for Liquid Sodium Hypochlorite. On January 16, 2024, the price of bleach increased from $1.28 per gallon to $1.33 per gallon, which remained significantly below the price of the second bidder ($1.67 per gallon), resulting in a projected annual cost increase of $127,085.97.
Additionally, the WET Division experienced a significant increase in chemical demand during 2024, driven primarily by the influx of wastewater, stormwater and seawater at the WRFs during hurricane season. This was further compounded by operational challenges, including sand filter blockages, which led to difficulties maintaining compliance with FDEP’s fecal coliform, and minimum total residual chlorine permit requirements. From August through October 2024, the WET Division estimates using at least 82,702 additional gallons of bleach, costing approximately $109,994.19 at the $1.33 per gallon rate. While operations have largely stabilized, bleach usage remains above average to ensure compliance. These factors, combined with the price increase, necessitated an adjustment to the annual not-to-exceed amount for year two of the contract, increasing it $120,000 to $1,320,000.00 through January 16, 2025, which was approved by the City Manager on January 11, 2025.
Odyssey has requested a price increase for Liquid Sodium Hypochlorite, raising the cost from $1.33 per gallon to $1.48 per gallon for the final year of the contract beginning January 17, 2025. Even with the proposed increase, the price remains lower than the competing bid from the original invitation to bid. This adjustment is the key factor in setting the annual not-to-exceed amount for year three at $1,500,000.00.
APPROPRIATION CODE AND AMOUNT:
Budgeted funds for FY25 are available in various Public Utilities cost centers, cost code 551700 Bulk Chemicals. The Public Utilities Department is funded by the Water and Sewer Utility Enterprise Fund.
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).
