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Item No. 21 <br />Memorandum <br />TO: Mayor & City Council <br />Grayson Path, City Manager <br />FROM: Doug Harris, Director of Utilities <br />SUBJECT: AWARD WATER TREATMENT ALUMINUM SULFATE BID <br />DATE: September 28, 2020 <br />BACKGROUND: <br />Bids for water and wastewater treatment chemicals were approved by City Council at the August <br />10, 2020 meeting. <br />STATUS OF ISSUE: <br />The low bid submitted for Aluminum Sulfate, used at the water treatment plant, was $137.10/ton, <br />received from Univar USA, Inc. This bid amount was verified with Univar's account <br />representative for accuracy prior to the August 10th City Council meeting. On Friday, September <br />11, 2020, Univar stated they were unable to honor the bid price and were withdrawing their bid, <br />due to an error by a Univar Municipal Specialist. City Staff attempted to insist that Univar honor <br />their bid given their assurance that led to the City Council awarding the bid and the City developing <br />their budget around this, but Univar has stated they cannot. In addition to Univar's bid, there were <br />five (5) other vendors which submitted bids for Aluminum Sulfate, the next lowest bidder was <br />Chameleon Industries, Inc., with a bid amount of $238.00/ton. Chameleon Industries was <br />contacted Monday, September 14, 2020, and verified they would honor the price of $238.00/ton. <br />The water and wastewater treatment chemical bid amounts were used in preparation of the FY <br />2020/2021 budget, the Aluminum Sulfate bid price of $238.00/ton constitutes an estimated <br />increase to the Water Production chemical budget by $100,900.00. After re-examining the Utility <br />Budget, we do not recommend amending the budget at this time. Instead, the increase will be offset <br />by 1) utilizing existing storage of treatment chemicals we have not used this FY19/20 but were <br />budgeted for in FY20/21, 2) the water treatment chemical budget buffer of $34,214.00, and finally <br />3) in a worst case scenario possibly delay one or more capital projects in the Water Production <br />budget until we get further in the FY and see how expense and revenue are netting out. In addition, <br />