HomeMy WebLinkAboutE-3.1. Approve First Amendment to PSA with Northstar Chemical to Provide Water Treatment Chemical and Equipment SvcsE-3----------4-
TO:
FROM:
DATE:
CONSENT CALENDAR
HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
MANNY ROBLEDO, DIRECTOR OF UTILITIES �C/L
MAY 28, 2019
SUBJECT: APPROVE FIRST AMENDMENT TO THE PROFESSIONAL SERVICES
AGREEMENT WITH NORTHSTAR CHEMICAL TO PROVIDE WATER
TREATMENT CHEMICAL AND EQUIPMENT SERVICES
BACKGROUND:
In August 2017, a two-year Professional Services Agreement (PSA) was executed with Northstar
Chemical (Northstar) for "mini-bulk" delivery of 12.5% sodium hypochlorite used in water
treatment. Northstar has performed well to date, and with the current PSA expiring on June 30,
2019, Azusa Light & Water (ALW) recommends exercising its option to extend the PSA for two
additional years in an amount not to exceed $175,000 per year, including three additional one
year extensions thereafter.
RECOMMENDATION:
Staff recommends the Utility Board take the following action:
1)Approve the First Amendment to the Professional Services Agreement (First
Amendment) with Northstar Chemical, as a DBA of Pacific Star Chemical, in an
amount not to exceed $175,000 annually, in accordance with Azusa Municipal Code
Section 2-517(a)(24); and
2)Authorize the Mayor to execute the First Amendment, in a form acceptable to the
City Attorney, on behalf of the City.
ANALYSIS:
Northstar Chemical has been supplying 12.5% sodium hypochlorite to Azusa Light & Water
since August 2014. This chemical is used by ALW for chlorination at each of its eleven
groundwater wells. Under a previous three year agreement, the chemical price was fixed at $1.83
per gallon with Northstar providing new chemical storage tanks at each well location. The tanks
APPROVED
UTILITY BOARD
05/28/19