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Home My WebLink AboutStaff Report 3.E 7/1/2013 � Ag 'nda'Itesn'#3 .E 2AL bleir a Y \8se,, DATE:, July 1,2013, TO: Honorable:Mayor and Members of the City Council through City Manager FROM: Dan St. John, F.ASCE—Director, Public Works and Utilities Matthew Pierce —Operations Supervisor SUBJECT: Resolution Accepting Bids and Awarding Contracts to the Lowest Responsible Bidders for Furnishing Chemicals for Wastewater Treatment for Fiscal Year 2013/14 and Authorizing the City Manager to Execute the Necessary Agreements or Purchase Orders RECOMMENDATION It is recommended that the City Council adopt+;the attached Resolutioq Accepting and Awarding Bids to the Lowest Responsible Bidders for Furnishing Chemicals for:Wastewater Treatment for Fiscal Year 2013/14 and Authorizing the.City Manager to:Execute the Necessary Agreements or Purchase Orders on Behalfbfthe City. BACKGROUND Large quantities of chemicals are used,in•the treatment of wastewater at the Water Recycling Facility and it has been the City's practice topurchase4hese chemicals at the beginning of the fiscal year at guaranteed prices for the entire year Chemicals are delivered as needed during the year These chemicals are used in a number of different operations at the plant, and are necessary to meet the regulatory requirements which.govern'those processes. These chemicals range from coagulants used,tojremove solids, to chemicals used to:neutralize chlorine during the final dechlorination:process. TheiCityof Petaluma is a member of the North Bay Agency Chemical.Pool (NBACP) with.fourteen other agencies in Northern California., The purpose of the pool is to obtaiirthe best>possible pricing through joint purchasing. Invitation to bid was sent to,25 chemical companies on April 25, 2013. Sealed bids wert opened on May'9,201.3 at Vacaville''s.Easterly Wastewater Treatment Plant. A Bid Summary, which lists the bidders and bids for each,chemical, as,well as the NBACP's Recommendation foraChemical Purchase is attached (Attachment 2). At the bottom of the bid summary, is,a historical pricing chart for each chemical over the last five years. Review of the summary illustrates that over time,some costshaveiincreased and others have decreased. These variances are.affected'l y transportation, raw material and energy costs. Agenda Revi- City Attorne• % Finance.Director ,i l City Manager • DISCUSSION After review of the bids, it recommended to award bids to the following lowest responsible bidders for,the chemicals listed and the prices:indicated` Apparent Low Bidder Item Unit.Cost Thatcher Chemical Aluminum Sulfate $277.60/dry ton Uriivar Sodium Bisulfite (25%) $0.749 per gallon Thatcher Chemical Ferric Chloride(43%) $597.00 per dry ton Polydyne Polymer.for solids thickening $10.15 per gallon Polydyne Polymer for solids dewatering $10.15 per gallon Olin Corporation Sodium Hypochlorite (12.5%) $0.498 per gallon FINANCIAL IMPACTS The FY 2013/2014 wastewater operating:supplies budget:.is $813;000 (6600-66700-53020). Based'on.the bids received the anticipated 2013/20/4 cost for bid chemicals is $369,311 plus applicable sales tax. Table 1. Chemical costs comparison-for the past two fiscal.years. Chemical Estimated Fr 12/13 FY 13/14 FY 13/14 Name Plant Use Quantity Pricing Pricing Expense Sodium $0.478 / $0.498/ Hypochlorite Disinfection/odors/filters 160,000 _gallon gallon $ 79,680 Sodium $0.749 / $0.749/ Bisulfite Dechlorination 35,000 gallon gallon $ 26,215 Ferric Hydrogen sulfide $720:00../ $597.00/ Chloride removal 100 dry ton dry ton $59,700. Aluminum $277.60/ Sulfate Coagulant 30 dryton dry ton $8,328 $10.15;7 $10.1-5/ Polymer Solids thickening 2,750 gallon gallon $ 27,913 $10.15'/ $10.15/ • Polymer _ Solids dewatering 16,500 gallon gallon $167,475 Total;Anticipated1Costs $369,311 Total;Anticipated:Costs Including • Applicable.Sales Tai Estimated at $399,779 8.250% ATTACHMENTS 1. .Resolution 2. Summary and Recommendation for FY 2013=214 Chemical Purchase Attachment 1 RESOLUTION ACCEPTING AND'AWARDING BIDS TO THE LOWEST RESPONSIBLEBIDDERS FOR FURNISHING CHEMICALS FOR WASTEWATER TREATMENT FOR FISCAL YEAR 2013/2014.AND AUTHORIZING THE-CITY MANAGER TO EXECUTETHE NECESSARY AGREEMENTS OR°PURCHASE ORDERS ON BEHALF OF THE CITY WHEREAS,the City of:.P,etaluma uses bulk chemicals in its operation of the Ellis Creek Water Recycling Facility;'and WHEREAS, the City of Petaluma joined the North.Bay Agency Chemical Pool (NBACP) in 2009 to obtain lowest;possible pricing through joint°purchasing; and WHEREAS, the:NBACP?conducted a competitive bid process for bulk purchase of numerous chemicals for the Fiscal Year 2013/14; and WHEREAS, the NBACP bid the chemicals on April 25,:2013, and nineteen (19) bids were received and opened on May 9, 2013 in accordance with:applicable law; and WHEREAS, the`lowestresponsive bids for the chemicals to be purchased through NBACP. by the..City of Petaluma were: A. Univar'fori'Sodium Bisulfite B. Thatcher Chemical for Ferric Chloride C. Polydyne for C 76288 polymer or equivalent (solids,thickening) D. Polydyne for WE-1152 polymer or equivalent(solids dewatering) E. Olin Corporation for Sodium Hypochlorite F. Thatcher Chemical for Aluminum Sulfate WHEREAS, as a.member of NBACP;:the.City of Petaluma is entitled to purchase bulk chemicals from the NBACP's low bidders at the bid price stated; and WHEREAS, the bulk chemical purchases contemplated by this resolution are exempt from other competitive bid-requirements of Petaluma Municipal Code Chapter 4.04 pursuant to Petaluma Municipal Code'Section,4.04:100, "Cooperative Purchasing Programs?;and. NOW THEREFOR E BE IT`RESOLVED by the City Council of the City of Petaluma as follows: 1. The bids for'chelnicals listed above are hereby accepted. 2. Purchase Orders are awarded to',.the following vendors for the bulk chemicals ,listed below, in conformance with the NBACP lowest responsive bids, conditioned on timely execution by each vendor of the Standard Agreement contained in the NBACP Chemical Requirements:for 2013-2014 bid package ("Standard Agreement") and Addendum No 1 to add information for technical specification wording and submission of all required documents: a. Univar, for Sodium Bisulfite, $0:749/gallonsand not to exceed $26,215, plus applicable sales tax. b. Thatcher Chemical;forFerric Chloride (43%), $597/dry ton and not to exceed $59,700, plus applicable sales`tax. c. Polydyne, forC 6288.Polymer or equivalent, $10.15/gallon and not to exceed $27,913 plus applicable sales tax. d.. Polydyne, for rWE-1 F52 Polymer or equivalent, $10.15/gallon and not to exceed $167;475 plus applicableisales'tax. e. Olin Corporation, for Sodium Hypochlorite (12.5%),;$0.498 /gallon and not to exceed$84,660 plus applicable sales tax. C. Thatcher Chemical for Aluminum Sulfate (48%), $277.60/dry ton and not to exceed $8,328, plus applicable sales tax. 3. The City.Manager-is authorized to execute purchase orders necessary to complete bulk chemical purchases for Fiscal Year 2013/14. 4 • North Bay Chemical Agency Pool, Chemicals for Ellis Creek SURF Attachment 2 Bid Summary 2013-2014 Polydyne C.6288(or •Polydyne WE-1152(or Ferric Cl Hypochlorke iBisulfite .Aluminum Cl! equhialent)- -equivalent). Chemical Vendor. 43% 0.1250 125% $0.48 -275 gallon tote .330 gallon tote (dry ton) (gallon) (gallon):' ' (dry ton). (gallon) (gallon) Brenntag Pacific 50.850 50.938 ' ,Chemurgic !$0.990 General Chemical Co $438.00 HASA,Inc. -1 $0.769 Kemira Water Solutions $700.00 Olin Corporation. 50.498 Penncco,Inc $758 00 Polydyne $10.15 $10.15 Rhodia,Inc - $452.75' Sierra Chemical company - - $0 549'- : . Thatcher Chemical $597.00 $277.60' - Univar $0.610- 50.749 Prewoui Fiscal Year Prices - _ FY13-14 5597.00 50.4980 $0.749 '$2]].60 $10.15 510.15 FY12-13 5720.00 $0.4780 $0 749 •$39800 510.15 $1015 FY11-12 874500 $06497 $0808. •$393.00 51045 $1045 FY10-11 $640.00 $0.5995 $0.739, 5319.00 $9.01 5901 FY09-10 $720 00 $0 7590 $0 947 $358.00 n/a n/a. FY08-09 $660.21 50.7990 $0.825 5389.00 n/a n/a 5 •