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<br /> <br /> <br /> REQUEST FOR ; <br /> <br /> COUNCIL ACTION <br /> <br /> CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: <br /> <br /> AUGUST 1, 2011 <br /> TITLE: APPROVED <br /> ? As Recommended <br /> CONTRACT RENEWAL TO GALLADE ? Amended <br /> CHEMICAL INC. FOR WATER El Ordinance on 151 Reading <br /> ? Ordinance on 2"d Reading <br /> TREATMENT SALT ? Implementing Resolution <br /> (SPEC. NO.08-008) ? Set Public Hearing For <br /> _11 <br /> CONTINUED TO <br /> FILE NUMBER <br /> CITY MANAGER <br /> RECOMMENDED ACTION <br /> <br /> Renew the contract with Gallade Chemical Inc. for water treatment salt for a one-year period in an <br /> annual amount not to exceed $40,000. <br /> <br /> DISCUSSION <br /> <br /> The Public Works Agency Water Resources Division produced 35,274.6 acre-feet of water last fiscal <br /> year from 21 groundwater wells and purchased another 5,860.6 acre-feet of treated water from the <br /> Metropolitan Water District for delivery to businesses and residents in Santa Ana. In compliance with <br /> the National Sanitation Foundation Standard 60 requirements for safety, salt is used in a non- <br /> hazardous disinfection process at the well sites. Central Stores at the Corporate Yard handles the <br /> ordering and storing of the salt bags until requisitioned by PWA water crews. The contract for salt <br /> provides quality products at a significant savings based on quantity pricing. <br /> <br /> On April 7, 2008, the City Council awarded a contract to Gallade Chemical Inc. for a one-year period, <br /> with provisions for four one-year renewals. The vendor has <br /> performed satisfactorily during the past <br /> contract period and has agreed to renew the contract; however the vendor has requested a 2.15 <br /> percent price increase per sack as the results of rising cost of raw material. Staff verified the <br /> increase is consistent with the market and the vendor continues to offer a competitive price. Staff <br /> recommends the third renewal of the contract. The annual amount has been adjusted down by 11 <br /> percent based upon staff's projection for the next year. <br /> FISCAL IMPACT <br /> <br /> Funds are available in the Water Utility Production & Supply account (accounting unit 06017640- <br /> 63001). <br /> APPROVED AS TO FUNDS AND ACCOUNTS: <br /> <br /> <br /> Raul Godinez II Francisco Gutierrez <br /> Executive Director Executive Director <br /> Public Works Agency Finance & Management Services Agency <br /> km 22E-1 <br />