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June 26, 2000
STAFF REPORT
To: Mayor Campbell and Members of the City Council
Thru: Keith R. Till, City Manager
From: Stephen G. Badum, Director of Public Works /City Engineer
Subject: AWARD SOLE SOURCE —ON SITE SODIUM HYPO
CHLORITE GENERATION SYSTEM (BEVERLY
MANOR), PROJECT 819
SUMMARY OF REQUEST
The proposed action will award a contract to install a sodium hypo - chlorite generation
system to Chemical Services Company, in the amount of $85,000 and authorize the City
Manager to execute same.
DISCUSSION-
Currently, the City's water department still uses the chlorine gas method to chlorinate the
City's water supply that is pumped from the ground at Beverly Manor. In 1997 the OCFA
notified the City that according to the UFC code that the past method using chlorine gas
was unacceptable in its present form. These facilities are 30 to 40 years old. Additionally,
the Federal government has mandated any agency or business with hazardous substances
such as chlorine gas to submit a detailed Risk Management Program (RMP) for these
facilities along with the requirements of the California Accidental Release Prevention
Program (CalARP).
On site generation provides the City the power of chlorine gas without the danger of
storing or handling hazardous materials while providing a safe, efficient and economical
alternative. It operates automatically requiring only water, salt and electricity. Agencies
such as Santa Ana, Westminster, and Fullerton have already begun the switch over. It also
eliminates the preparation of costly mandated reporting requirements to federal and state
agencies. Additionally, it reduces City personnel hazards due to handling of chemicals
while decreasing the risk to the environment and surrounding population.
Last year, Chemical Services Company was the only bidder and successfully installed units
at the Navy reservoir station and the Bolsa Chica Station. The relatively low bidder turn out
is due to this being a new method and there are few if any qualified vendors in the market.
1 AGENDA ITEM -Z
v
Award Contract
City Council Staff Report
June 26, 2000
Consequently, for maintenance integrity and operation, this work will be performed as a
sole - source negotiated contract. It will allow our maintenance staff' to standardize the
chlorination system and provide better and more cost effective service to the rate payers.
Engineering and Maintenance Staff were able to make minor improvements to the water
system at Beverly Manor that substantially lowered the cost of the proposed chlorination
system by $30,000. With these modifications to our system complete, the following price
was obtained from the vendor:
Company
Amount
Chemical Services Company $85,000.00
Chemical Services Company, is properly licensed to do the work and has appropriate work
experience.
FISCAL IMPACT:
Funds are currently available from within the City's Capital Improvement program under
account 019 - 49819 -062. The actual costs for this system were lower than anticipated by
the Water Department Staff
RECOMMENDATION:
It is recommended that the City Council:
1. Make findings that the purchase of replacement water meter reading equipment is
exempt from bidding in accordance with Section 2 -25 (c) & (f) of the City's Municipal
Code which provides for purchasing when utilizing a sole source vendor and when it
would be in the best interest of the City to dispense with standard bidding practices.
The recommended equipment is only available through one known vendor and it is in
the best interest of the City to purchase this equipment to insure compatibility with the
City's existing water chlorination system.
2. Award the construction contract for On Site Sodium Hypo Chlorite Generation System,
/ /819 to Chemical Services Company. Authorize the City Manager to execute the contract
for same.
2
AGENDA rrEM
Asst. City Engineer
NOTED AND APPROVED:
ILI
Keith R. Till
City Manager
Award Contract
City Council Staff Report
June 26, 2000
REVIEWED Wi
Stephen G. Badum, P.E., Director
Public Works Department
AGENDA ITEM_