HomeMy WebLinkAboutStaff Report 3.G 6/16/2014(9)
Agenda Item #3.G
DATE: June 16, 2014
TO: Honorable Mayor and Members oftheCity Council through City Manager
FROM: Dan St. ohn,� ir�D ector, Public Works and Utilities
Leah G.`Walker, P.E. — Environmental Services Manager
SUBJECT: Resolution Accepting Bids and Awarding Contracts to the Lowest Responsible
Bidders for Furnishing Chemicals for Wastewater Treatment for Fiscal Year
2014/15 and Authorizing the City Manager to Execute the Necessary Agreements
or Purchase Orders
RECOMMENDATION
It is recommended that the City Council adopt the attached Resolution Accepting and Awarding
Bids to the Lowest Responsible Bidders for Furnishing Chemicals for Wastewater Treatment for
Fiscal Year 2014/15 and Authorizing the City Manager to Execute the Necessary Agreements or
Purchase Orders on Behalf of the City.
BACKGROUND
Bulk quantities of chemicals are used in a number of different processes to treat wastewater at
the Ellis Creek Water Recycling Facility. It has been the City's practice to purchase these
chemicals at the beginning of the fiscal year to establish guaranteed prices for the entire year as
chemicals are delivered to meet demands. These chemicals include coagulants used to remove
solids and chemicals used to neutralize chlorine during dechlorination. The purpose of this
action is to allow contracting for chemical deliveries for FY 2014/15.
The City of Petaluma is a member of the North Bay Agency Chemical Pool (NBACP) along with
twelve other public agencies. The pool endeavors to obtain the best possible pricing through
joint purchasing. In accordance with Petaluma Municipal Code Section 4.04.100, purchases
conducted utilizing a cooperative purchasing program with the state, county or other public
agencies are exempt from normal competitive purchasing requirements. Cooperative purchases
must be competitively awarded, and documentation as to the advantage of the cooperative
purchase retained. Invitation to bid was sent to 25 chemical companies on May 1, 2014. Sealed
bids were opened on May 22, 2014 at the City of Benicia's Water Treatment Plant.
Agenda Review:
City Attorney Finance Director City Manager
A Bid Summary, which lists the bidders and bids for each chemical, as well as the NBACP's
Recommendation for Chemical 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 costs have increased and others have decreased. These
variances are affected by transportation, raw material and energy costs.
After review of the bids, the NBACP recommends awarding bids to the following lowest
responsible bidders for the chemicals listed and the prices indicated:
Apparent Low Bidder
Univar USA, Inc
Kemira Water Solutions
SNF/Polydyne
SNF/Polydyne
Olin Corporation
FINANCIAL IMPACTS
Item
Sodium Bisulfite (25%)
Ferric Chloride (43%)
Polymer for solids thickening
Polymer for solids dewatering
Sodium Hypochlorite (12.5%)
Unit Cost
$0.909 per gallon
$517.00 per dry ton
$9.03 per gallon
$9.03 per gallon
$0.512 per gallon
The FY 2014/15 wastewater operating supplies budget (6600-66700-53020) is $660,000. As
summarized below, the anticipated FY 2014/15 cost for bid chemicals is $339,656 not including
sales tax, which is an eight percent decrease compared to FY 2013/14. The decrease was derived
from lower chemical prices as shown in the chemical bid summary in Attachment 2.
Table 1. Chemical costs and estimated quantities
Chemical
Estimated
FY 14/15
FY 14/15
Name
Plant Use
Quantity
Pricing
Expense
Sodium
$0.512/
Hypochlorite
Disinfection/odors/filters
140,000
gallon
$ 71,680
Sodium
$0.909/
Bisulfite
Dechlorination
35,000
gallon
$ 31,815
Ferric
Hydrogen sulfide
$517.00/ dry
Chloride
removal
90
ton
$46,530
$9.03/
Polymer
Solids thickening
2,750
gallon
$ 24,833
$9.03/
Polymer
Solids dewatering
18,250
gallon
$164,798
Estimated Costs, no tax
$339,656
Estimated Costs Including Sales Tax
$367,678
8.250%
ATTACHMENTS
Resolution
NBCAP Chemical Bid Summary
Attachment 1
RESOLUTION ACCEPTING AND AWARDING BIDS TO THE LOWEST
RESPONSIBLE BIDDERS FOR FURNISHING CHEMICALS FOR
WASTEWATER TREATMENT FOR FISCAL YEAR 2014/2015 AND
AUTHORIZING THE CITY MANAGER TO EXECUTE THE NECESSARY
AGREEMENTS OR PURCHASE ORDERS ON BEHALF OF THE CITY
WHEREAS, the City of Petaluma uses bulls 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 2014/15; and
WHEREAS, the NBACP bid the chemicals on May 1, 2014, and eighteen (18)
bids were received and opened on May 22, 2014 in accordance with applicable law; and
WHEREAS, the lowest responsive bids for the chemicals to be purchased
through NBACP by the City of Petaluma were:
A. Univar USA, Inc. for Sodium Bisulfite
B. Kemira Water Solutions for Ferric Chloride
C. SNF/Polydyne for C-6288 polymer or equivalent (solids thickening)
D. SNF/Polydyne for WE -1152 polymer or equivalent (solids dewatering)
E. Olin Corporation for Sodium Hypochlorite
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 THEREFORE BE IT RESOLVED by the City Council of the City of
Petaluma as follows:
1. The bids for chemicals 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 2014/15 bid package
("Standard Agreement') and submission of all required documents:
a. Univar USA, Inc., for Sodium Bisulfite, $0.909/gallon and not to exceed
$31,815 plus applicable sales tax.
b. Kemira Water Solutions for Ferric Chloride (43%), $517.00/dry ton and
not to exceed $46,530 plus applicable sales tax.
c. SNF/Polydyne, for C-6288 Polymer or equivalent, $9.03/gallon and not to
exceed $24,833 plus applicable sales tax.
d. SNF/Polydyne, for WE -1152 Polymer or equivalent, $9.03/gallon and not
to exceed $164,798 plus applicable sales tax.
e. Olin Corporation, for Sodium Hypochlorite (12.5%), $0.512 /gallon and
not to exceed $71,680 plus applicable sales tax.
3. The City Manager is authorized to execute purchase orders necessary to
complete bulk chemical purchases for Fiscal Year 2014/15
4
North Bay Agency Chemical Pool
Chemicals for Ellis Creek WRF
Bid Summary 2014-2015
Previous Fiscal Year Prices
Ferric Cl
Hypochlorite
Bisulfite
Polydyne C-6288 (or
equivalent)
Polydyne WE -1152 (or
equivalent)
Chemical Vendor
43%
12.5%
25%
275 gallon tote
330 gallon tote
FY13-14
(dry ton)
(gallon)
(gallon)
(gallon)
(gallon)
Brenntag Pacific
$720.00
$0.4780
$0.749
$10.15
$10.15
$0.970
$745.00
Chemurgic
$0.808
$10.45
$10.45
FY10-11
$640.00
$1.000
$0.739
HASA, Inc.
$9.01
FY09-10
$720.00
$0.7590
$0.947
$0.770
n/a
Kemira Water Solutions
$517.00
Olin Corporation
$0.512
Penncco, Inc
$748.00
SNF/Polydyne
$9.03
$9.03
Thatcher Chemical
$549.83
Univar USA, Inc
$0.610 $0.909
Previous Fiscal Year Prices
FY14-15
$517.00
$0.5120
$0.909
$9.03
$9.03
FY13-14
$597.00
$0.4980
$0.749
$10.15
$10.15
FY12-13
$720.00
$0.4780
$0.749
$10.15
$10.15
FY11-12
$745.00
$0.6497
$0.808
$10.45
$10.45
FY10-11
$640.00
$0.5995
$0.739
$9.01
$9.01
FY09-10
$720.00
$0.7590
$0.947
n/a
n/a
Attachment 2
E