HomeMy WebLinkAboutStaff Report 3.C 06/15/2015. E
DATE: June 15, 2015
Agenda Item #3.0
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Dan St. John, F.ASCE — Director, 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
2015/16 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 2015/16 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 chemical
deliveries for the entire year. These chemicals include coagulants used to remove solids,
polymers to dewater sludge, and chemicals used to disinfect and dechlorinate treated wastewater.
The purpose of this action is to provide single contracts for chemical deliveries for FY 2015/16
for each vendor that provides the lowest unit cost.
DISCUSSION
The City of Petaluma is a member of the North Bay Agency Chemical Pool ( NBACP) along with*
twelve other public agencies. The NBACP endeavors to obtain the best available 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 competitive purchasing conducted by the City. Cooperative purchases
must be competitively awarded, and documentation as to the advantage of the cooperative
purchase retained. By combining the quantities of chemicals needed by the 13 agency purchasing
consortium, the City benefits from the economies of scale and receives lower bid prices
compared to if the City bid its chemical needs alone. Invitations to bid, issued by NBACP, were
sent to 25 chemical companies on April 15, 2015. Sealed bids were opened on May 6, 2015 at
the City of Benicia's Water Treatment Plant.
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, including the NBACP recommendations, it is recommended that the
Council award bids to the following lowest responsible bidders for the chemicals listed and the
prices indicated:
Apparent Low Bidder
Olin Corporation
Univar USA
Kemira Water Solutions
Cal Chem Enterprises
SNF /Polydyne
SNF /Polydyne
FINANCIAL IMPACTS
Item
Sodium Hypochlorite (12.5 %)
Sodium Bisulfite (25 %)
Ferric Chloride (43 %)
Aluminum Chlorohydrate
Polymer for solids thickening
Polymer for solids dewatering
Unit Cost
$0.501 per gallon
$0. 893 per gallon
$493.70 per dry ton
$0.246 per pound
$1.18 per pound
$1.18 per pound
The FY 2015/16 wastewater operating supplies budget (6600- 66700 - 53020) is $685,000. As
summarized below, the anticipated FY 2015/16 cost for bid chemicals is $434,338 not including
sales tax. Historical chemical prices are shown in the chemical bid summary in Attachment 2.
Table 1. Chemical costs and estimated quantities
2
Estimated
FY 14/15
FY 14/15
Chemical Name
Plant Use
Quantity
Pricing
Expense
Sodium
$0.501/
Hypochlorite
Disinfection/odors /filters
170,000
gallon
$ 85,170
$0.893/
Sodium Bisulfite
Dechlorination
35,000
gallon
$31,255
Hydrogen sulfide
$493.70/
Ferric Chloride
removal
90
dry ton
$44,433
Aluminum
Coagulant for Tertiary
$0.246/
Chlorohydrate
Filtration
100,000
pound
$24,600
$1.18/
Polymer
Solids thickening
23,650
pound
$27,907
$1.18/
Polymer
Solids dewatering
187,265
pound
$220,973
Estimated Costs, no tax
$434,338
Estimated Costs Including Sales Tax
$470,171
8.250%
2
ATTACHMENTS
1. Resolution
2. NBCAP Chemical Bid Summary
Attaclunent 1
RESOLUTION ACCEPTING AND AWARDING BIDS TO THE LOWEST
RESPONSIBLE BIDDERS FOR FURNISHING CHEMICALS FOR
WASTEWATER TREATMENT FOR FISCAL YEAR 2015/2016 AND
AUTHORIZING THE CITY MANAGER TO EXECUTE THE NECESSARY
AGREEMENTS OR PURCHASE ORDERS ON BEHALF OF THE CITY
WHEREAS, the City of Petaluma 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 2015/16; and
WHEREAS, the NBACP bid the chemicals on April 15, 2015, and twenty -two
(22) bids were received and opened on May 6, 2015 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. Olin Corporation for Sodium Hypochlorite
B. Univar USA, Inc. for Sodium Bisulfite
C. Kemira Water Solutions for Ferric Chloride
D. Cal Chem Enterprises for Aluminum Chlorohydrate
E. SNF /Polydyne for C -6288 polymer or equivalent (solids thickening)
F. SNF /Polydyne for WE -1152 polymer or equivalent (solids dewatering)
WHEREAS, as a member of NBACP, the City of Petaluma is entitled to
purchase bulls 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
WHEREAS, the City benefits from participating in the cooperative purchase
because it takes advantage of lower bid prices due to the economies of scale in bidding
larger quantities of chemicals for all thirteen agencies that cooperate in the purchasing
consortium.
4
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 2015/16 bid package
( "Standard Agreement ") and submission of all required documents:
a. Olin Corporation, for Sodium Hypochlorite (12.5 %), $0.501 /gallon and
not to exceed $85,170 plus applicable sales tax.
b. Univar USA, Inc., for Sodium Bisulfite, $0.893gallon and not to exceed
$31,255 plus applicable sales tax.
c. Kemira Water Solutions, for Ferric Chloride (43 %), $493.70/dry ton and
not to exceed $44,433 plus applicable sales tax.
d. Cal Chem Enterprises, for Aluminum Chlorohydrate, $0.246 /pound and
not to exceed $24,600 plus applicable sales tax.
e. SNF/Polydyne, for C -6288 Polymer or equivalent, $1.18 /gallon and not to
exceed $27,907 plus applicable sales tax.
£ SNF /Polydyne, for WE -1152 Polymer or equivalent, $1.18 /gallon and not
to exceed $220,973 plus applicable sales tax.
The City Manager is authorized to execute purchase orders necessary to
complete bulk chemical purchases for Fiscal Year 2015/16
North Bay Agency Chemical Pool
Chemicals for Ellis Creek WRF
Bid Summary 2015 -2016
Attachment 2
Previous Fiscal Year Prices
FY 15 -16
FY14 -15
FY13 -14
FY12 -13
FY11 -12
FY10 -11
$493.700
Ferric Cl
Hypochlorite
Bisulfite
Aluminum
Chlorohydrate
Polydyne C -6288
(or equivalent)
Polydyne WE -1152
(or equivalent)
Chemical Vendor
43%
12.5%
25%
$1.05
275 gallon tote
330 gallon tote
$0.749
(dry ton)
(gallon)
(gallon)
(pound)
(pound)
(pound)
Brenntag Pacific
$1.18
$1.18
$1.060
$0.6497
$0.808
n/a
$1.22
$1.22
$640.00
$0.5995
$0.739
n/a
Cal Chem Enterprises
$1.05
$0.246
Chemurgic
$1.040
General Chemical
HASA, Inc.
$0.715
Kemira Water Solutions
$ 493.70
Olin Corporation
$0.501
Penncco, Inc
$ 675.00
SNF /Polydyne
$1.18
$1.18
Thatcher Chemical
$ 508.87
Univar USA, Inc
$0.543
$0.893
Previous Fiscal Year Prices
FY 15 -16
FY14 -15
FY13 -14
FY12 -13
FY11 -12
FY10 -11
$493.700
$0.5010
$0.893
$0.246
$1.18
$1.18
$517.00
$0.5120
$0.909
$0.295
$1.05
$1.05
$597.00
$0.4980
$0.749
$0.380
$1.18
$1.18
$720.00
$0.4780
$0.749
n/a
$1.18
$1.18
$745.00
$0.6497
$0.808
n/a
$1.22
$1.22
$640.00
$0.5995
$0.739
n/a
$1.05
$1.05
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