TO: Mayor and Commissioners
FROM: Marjorie Craig, P.E., Utilities Director
THROUGH: Mark R. Lauzier, City Manager
DATE: June 5, 2018
...Title
APPROVAL OF RESOLUTION NO. 76-18 TO AWARD AN AGREEMENT WITH PVS TECHNOLOGIES, INC. FOR FERRIC CHLORIDE SUPPLY SERVICES UTILIZING TAMPA BAY WATER’S CONTRACT NO. 2018-007 FOR A TOTAL AGREEMENT VALUE NOT-TO-EXCEED $87,500 THROUGH SEPTEMBER 30, 2018
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Recommended Action:
Recommendation
Motion to approve Resolution No. 76-18 to award an agreement with PVS Technologies, Inc. to supply ferric chloride utilizing Tampa Bay Water’s Contract No. 2018-007 for a total agreement value not-to-exceed $87,500 through September 30, 2018.
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Background:
On October 16, 2017, Tampa Bay Water (TBW) awarded a competitive contract with PVS Technologies, Inc. for ferric chloride supply services (Contract). The Contract is valid from January 1, 2018 through September 30, 2018, with three, one-year renewal options.
The City of Delray Beach (City) has an ongoing need for ferric chloride (FeCI3), which is used as part of the potable water treatment process. It provides for enhanced removal of source water impurities through the coagulation process, including turbidity control and color minimization. Overall, this proven coagulant helps the City provide safe, clean, and enjoyable potable water.
The City's estimated annual spend on FeCI3 is $350,000 based on the contracted price of $763 per dry ton ($1.71 per gallon) and historic annual use of approximately 460 dry tons. Therefore, staff estimates a prorated amount of $87,500 will be spent on FeCI3 through September 30, 2018. Renewal options approved by the City Manager, in accordance with Resolution No. 76-18, will utilize the estimated annual spend of $350,000 to calculate the Contract value's not-to-exceed amount for the given one-year renewal period. The City's previous contracted price per gallon for FeCI3 was $1.47 utilizing a Palm Beach County contract that was not renewed due a proposed price increase by the supplier.
Based on research of other governmental agreements for FeCI3, staff was able to save the City approximately $8,000 annually, for a total of $26,500 over the lifespan of the agreement if all renewal options are exercised, by leveraging TBW's competitive contract. For example, a neighboring governmental has a contracted price of $785 per dry ton, which is $22 more per dry ton than the TBW contracted price of $763 per dry ton.
This motion is in accordance with the Code of Ordinances Chapter 36, Commission Approval Required and Purchasing Policies, Accessing Contracts from Other Government Agencies and Not-for-Profit Organizations.
Attachments:
Attachment 1 - Other governmental entity's contract that City is utilizing
Attachment 2 - Resolution
Attachment 3 - Agreement
Attachment 4 - Legal Review Checklist
City Attorney Review:
Approved as to form and legal sufficiency.
Funding Source:
Funding is available from 441-36-259-536.52-30 - Operating Supplies Chemicals.