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t2.6, (. <br />Departmental Item <br />Indian River County, Florida <br />Department of Utility Services <br />Board Memorandum <br />Date: December 18, 2019 <br />To: Jason E. Brown, County Administrator <br />From: Vincent Burke, PE, Director of Utility Services <br />Through: Cindy Corrente, Finance Manager, Utility Services <br />Prepared By: Terry Southard, Operators Manager, Utility Services <br />Subject: Request to Waive Bid Process for Caustic Soda Chemicals <br />Background/Analysis: <br />Indian River County Department of Utility Services (IRCDUS) has two (2) water production facilities that <br />use caustic soda for the treatment of water. With most chemicals used in water production, staff goes <br />out to bid for an annual locked -in rate. However, the caustic soda market is quite volatile, and the bid <br />process does not yield the best prices. Therefore, staff typically seeks price quotes every six weeks in <br />order to ensure we are getting the lowest cost available for caustic. As a result, we process several <br />purchase orders each year for caustic. IRCDUS typically obtains quotes from the same three vendors: <br />Allied Universal Corp, Brenntag Mid -South Inc., and Harcros Chemicals Inc. <br />It is staff's intention to encumber $50,000.00 each time a quote is obtained. Encumbrances over <br />$35,000.00 require the County Administrator's approval. <br />Funding: <br />Funds for the caustic soda purchase are available in the Chemicals account within the Utilities Operating <br />Fund. Utilities operating funds are derived from water and sewer sales. A total of $256,000.00 is <br />budgeted for caustic soda in Fiscal Year 2019/2020, with $181,000.00 remaining. <br />-Description <br />Account Number <br />Amount <br />219 Water Treatment - Chemicals <br />47121936-035230 <br />$181,000.00 <br />RECOMMENDATION: <br />Staff recommends that the Board of County Commissioners waive the bid process requirements for caustic <br />soda for Fiscal Year 2019/2020 and authorize the Purchasing Manager to approve purchase orders up to <br />the available budgeted amount. <br />F:\Utilities\UTILITY - EMPLOYEE FOLDERS\Terry Southard\Agendas\Agenda - Caustic Soda Waive Bid Process 12 6 2019 Page 1 of 1 <br />(002)v2.doc <br />237 <br />