The Kenai City Council adopted a resolution authorizing a contract award to supply operational chemicals for the city’s water treatment and wastewater treatment facilities. The city annually contracts for the purchase of various chemicals in support of the water treatment and wastewater treatment plants. An invitation to bid for these chemicals was released in June 2022.
The city decided to enter into an agreement with Cascade Columbia Distribution Inc., which was found to be the lowest responsive bidder with a total combined bid in the amount of $132,300.90. The money is split in two with $55,268.40 going to the Water Treatment Plant and $77,032.50 going to the Wastewater Treatment Plant. According to the city administration, the bid is higher than anticipated due to a significant escalation in chemical prices. The bid was nearly $30,000 more than was budgeted as last year’s contract totaled $82,257.00 for the same materials and quantities.
When developing the FY23 budget, a 25% increase was included in anticipation of cost increases, bringing the budgeted number to about $103,000 for the purchase. The additional $30,000 is a result of the supply chain and increased freight costs due to fuel prices and inflation.
There are sufficient funds to award the contract, however, the city administration will bring an ordinance forward over the next several months to appropriate additional funds necessary to increase the funds available in the Operating and Repair Supplies Account in the Water and Sewer Fund to allow necessary purchases from the account for the remainder of FY23.
Scott Curtin, the Director of Public Works writes that the chemicals will be used to treat the city’s drinking water and to sanitize the effluent leaving the wastewater plant into Cook Inlet waters. Chemicals that continue to be purchased through this annual agreement include sodium hypochlorite as a sanitizing agent, sodium bisulfite to remove chlorination prior to discharging effluent into Cook Inlet waters, lime to adjust PH in the digester, and polymer for dewatering of wastewater sludge.
