Title
Consider a memorandum/resolution authorizing a Letter of Agreement with Bio Chem Lab, Inc. for FY 2024 water, wastewater, and environmental testing services, in an amount not to exceed $59,859.
Summary
DATE: October 3, 2023
TO: Kent Cagle, City Manager
FROM: Jeffery Reynolds, Executive Director of Public Works
SUBJECT: Authorize the execution of a Letter of Agreement with Bio Chem Lab for Water, Wastewater, and Stormwater Testing Services
BACKGROUND AND FINDINGS:
On an annual basis, in accordance with City policy, the Water and Sewer Division uses a three-quote process to select a certified testing lab for the estimated 3,000 water and wastewater samples and an estimated 30 environmental samples that require testing throughout the year. Since these tests are mandated by the Texas Commission on Environmental Quality (TCEQ) for the preservation of public health or safety, section 252.022(a)(2) of the Texas Local Government Code exempts this purchase from the competitive bidding process.
City staff received the following three quotes:
|
Bio Chem Lab, Inc. |
$59,859 |
|
Aqua-Tech Laboratories, Inc. |
$79,391 |
|
Ana Lab |
$187,280 |
Bio Chem Lab, Inc., of West, Texas submitted the lowest quote in the amount of $54,025 for the water and wastewater testing and $5,834 for the stormwater sample testing. The City has been very pleased with Bio Chem Lab’s testing services over the past fourteen years. Funding for this testing service is allocated in the Fiscal Year 2024 Engineering and Water and Sewer Budget. A Letter of Agreement for Bio Chem Lab’s testing services has been proposed.
THE ALTERNATIVES CONSIDERED:
(1) Do not approve the Letter of Agreement with Bio Chem Lab, Inc. and select another vendor.
(2) Approve the Letter of Agreement with Bio Chem Lab, Inc. in an amount not to exceed $59,859.
Which alternative is recommended? Why?
City staff recommends Alternative (2), approval of the proposed Letter of Agreement. This will allow the city to comply with TCEQ mandated testing requirements.
CONFORMITY TO CITY POLICY:
This agreement conforms with all applicable State and City purchasing policies.
FINANCIAL IMPACT:
What is the amount of the expenditure in the current fiscal year? For future years?
The total expenditure will not exceed $59,859 in FY 2024.
Is this a one-time or recurring expenditure?
This is a recurring expenditure. However, City staff requests quotes and negotiates agreements annually.
Is this expenditure budgeted?
Yes, funds are available in the Water & Sewer Fund accounts 550-3410-436.47-99 and 550-3415-437.47-99 for $54,025 and Engineering account 575-4035-452.47-99 for $5,834.
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this expenditure?
Yes
RECOMMENDATION:
City Council authorize the City Manager, or his designee, to execute a Letter of Agreement with Bio Chem Lab, Inc. for Fiscal Year 2024 water, wastewater, and stormwater testing services in an amount not to exceed $59,859.
DEPARTMENTAL CLEARANCES:
Public Works
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Agreement
Quotes
Certificate of Interested Parties