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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JUNE 1, 2009 <br />TITLE: <br />CONTRACT RENEWAL FOR <br />WATER TREATMENT SALT <br />(SPEC. NO. 08-008) <br />~~~'~--~ <br />~t ~ ~/ <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />^ As Recommended <br />^ As Amended <br />^ Ordinance on 15t Reading <br />^ Ordinance on 2"d Reading <br />^ Implementing Resolution <br />^ Set Public Hearing For_ <br />CONTINUED TO <br />FILE NUMBER <br />Renew the contract with Gallade Chemical, Inc. for water treatment salt for <br />a one-year period in an annual amount not to exceed $45,000. <br />DISCUSSION <br />Last fiscal year, the Public Works Agency Water Resources Division produced <br />43,004 acre-feet of water from 22 groundwater wells and purchased another <br />8,517 acre-feet of treated water from the Metropolitan Water District for <br />delivery to businesses and residents in Santa Ana. In compliance with the <br />National Sanitation Foundation Standard 60 requirement for safety, salt is <br />used in a non-hazardous disinfection process at the well sites. <br />On April 7, 2008, the City Council awarded a contract to Gallade Chemical, <br />Inc., a Santa Ana vendor, for a one-year period with provision for four <br />one-year renewals. The vendor has performed satisfactorily during the past <br />contract period and has agreed to renew the contract; however, the vendor <br />has requested a ten percent price increase due to the rising costs of <br />transportation and materials. Staff verified that the increase is <br />consistent with the market and the vendor continues to offer a competitive <br />price. Staff recommends the first renewal of the contract. The annual <br />amount is based upon past usage and staff's projection for the next year. <br />22B-1 <br />