Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A PURCHASE AGREEMENT WITH UNIVAR COMPANY FOR ROCK SALT FOR THE CITY’S WATER TREATMENT PLANT.
Executive Summary: The Water Resources Division uses bulk coarse rock salt to regenerate softening equipment as part of the water treatment process at the Water Plant. The Water Resources Division currently budgets $110,000 annually for rock salt and water treatment chemicals. The current rock salt contract is held by the Univar Company. The contract term ends on December 31, 2017. The 2017 rock salt expenditures for water treatment operations is projected to have a total expenditure of $100,000.00.
Body
Legislative History
Resolution #16-190, December 6, 2016: Permission to bid and/or obtain competitive pricing.
Purpose & Explanation
The Public Works Department publicly advertised for the water department bulk salt supply contract per the City’s current public bidding procedures and policies. Two (2) vendors acquired bid documents, Only one company submitted a formalized bid packet with that company being Univar Company. Morton Salt submitted a verbal bid after the bidding process had expired. The bid tabulation includes both bids and is attached for review. Univar Company provided the lowest bid $123.40 per ton for bulk treatment salt which represents a 17% increase from the current price of $105.20.
Our past experience with this contract and knowing that there are very few bulk salt suppliers, staff does not believe that re-bidding this contract will result in an increased number of bidders or lower pricing. With the lack of bidders showing an interest in the contract, we recommend the contract be awarded to Univar Company.
Timing Considerations
The contract term is for one (1) year from January 1, 2018 to December 31, 2018.
Fiscal Impact
X Currently Budgeted
Supplemental Appropriation Required
Appropriation Not Required.
Recommendation
Suggested Action
Staff recommends that City Council approve this Resolution authorizing the City Manager to award and enter into a contract with Univar Company, 328 Bunola River Road, Bunola, PA 15020 for the purchase of bulk water treatment salt at the per ton delivered unit price of $123.40.
Submitted by,
Jane Howington, City Manager
Frank J. Comeriato Jr., Assistant City Manager
Kevin J. Powell, Assistant Public Works Director - Utilities