HomeMy WebLinkAboutStaff Report 3.G 06/06/2016DATE: June 6, 2016
Agenda Item #3.G
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Dan t. SCE — Director, Public Works and Utilities
Leah G. Walker, P.E. — Environmental Services Manager
SUBJECT: Resolution Accepting Bids, Awarding Contracts to the Lowest Responsible
Bidders for Furnishing Chemicals for Wastewater Treatment for Fiscal Year
16/17 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 Bids and
Awarding Contracts to the Lowest Responsible Bidders for Furnishing Chemicals for
Wastewater Treatment for Fiscal Year 16/17 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 Creels Water Recycling Facility. These chemicals include coagulants used to remove
solids, polymers to dewater sludge, and other chemicals used to disinfect and dechlorinate
treated wastewater. The purpose of this action is to provide contracts for bulls chemical deliveries
for FY 16/17 to vendors based on a competitive bid process. Each year, a procurement process is
conducted by the North Bay Agency Chemical Pool purchasing consortium to assure that the
City has an annual supplier of these critical chemicals needed to effect proper treatment of
wastewater and biosolids.
DISCUSSION
The City of Petaluma is a member of the North Bay Agency Chemical Pool ( NBACP) along with
thirteen other public agencies. The NBACP endeavors to use its combined purchasing power to
obtain the best available pricing through joint purchasing. In accordance with Petaluma
Municipal Code Section 4.04.100, purchases conducted utilizing a competitive cooperative
purchasing program with the state, county or other public agencies are exempt from competitive
purchasing conducted independently 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 14 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 on its own. Invitations to bid, issued by NBACP, were sent to 25 chemical
companies on April 12, 2016. Sealed bids were opened on May 5, 2016 at the City of Fairfield'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 included as 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
Univar USA, Inc.
Univar USA, Inc.
Thatcher Chemicals
CalChem Enterprises
SNF /Polydyne
SNF/Polydyne
Item
Sodium Hypochlorite (12.5 %)
Sodium Bisulfite (25 %)
Ferric Chloride (43 %)
Aluminum Chlorohydrate
Polymer for solids thickening
Polymer for solids dewatering
Unit Cost
$0.471 per gallon
$0.936 per gallon
$438.78 per dry ton
$0.2040 per pound
$1.1908 per pound
$1.1908 per pound
The apparent low bidder for C -6288 polymer or equivalent, and WE -1152 polymer or equivalent,
Sterling Water Technologies, was found to be non - responsive. Sterling Water Technologies did
not comply with bidding instructions, which required bidders to demonstrate the effectiveness of
polymers to coagulate, flocculate, and de -water sludge. The lowest responsive bidder that met
the minimum specifications in the NBACP's bid was SNF/Polydyne; therefore, SNF/Polydyne is
the recommended bidder for the solids thickening and de- watering polymers.
Historical chemical prices are shown in the chemical bid summary in Attachment 2. Overall, the
total proposed chemical budget for FY 16/17 is less than one percent higher than last year's
budget.
Table 1, Chemical costs and estimated quantities
2
Estimated
FY 16/17
FY 16/17
Chemical Name
Plant Use
Quantity
Pricin
Expense
Sodium
$0.471/
Hy ochlorite
Disinfection/odors /filters
190,000
gallon
$ 89,490.00
$0.936 I
Sodium Bisulfite
Dechlorination
35,000
gallon
$ 32,760.00
$438.78/
Ferric Chloride
Hydrogen sulfide removal
90
dry ton
$ 39,490.20
Aluminum
Coagulant for Tertiary
$0.2040/
Chlorohydrate
Filtration
100,000
pound
$' 20,400.00
$1.1908/
Polymer (C -6288)
Solids thickening
26,015
pound
$ 30,978.66
$1.1908/1
Polymer (WE -1152)
Solids dewatering
187,265
pound
$222,995.16
2
FINANCIAL IMPACTS
The FY 2016/17 wastewater operating supplies budget (6600- 66700 - 53020) of $720,000 is
sufficient to cover these expenditures. As summarized in the preceding table, the anticipated FY
16/17 cost for bid chemicals is $472,093.
ATTACHMENTS
1. Resolution
2. NBCAP Chemical Bid Summary
3
$436,114.02
Estimated Costs, no tax
$472,093.43
Estimated Costs Including Sales Tax 8.250%
FINANCIAL IMPACTS
The FY 2016/17 wastewater operating supplies budget (6600- 66700 - 53020) of $720,000 is
sufficient to cover these expenditures. As summarized in the preceding table, the anticipated FY
16/17 cost for bid chemicals is $472,093.
ATTACHMENTS
1. Resolution
2. NBCAP Chemical Bid Summary
3
Attachment 1
RESOLUTION ACCEPTING BIDS AND AWARDING CONTRACTS TO THE
LOWEST RESPONSIBLE BIDDERS FOR FURNISHING CHEMICALS FOR
WASTEWATER TREATMENT FOR FISCAL YEAR 16/17 AND AUTHORIZING
THE CITY MANAGER TO EXECUTE THE NECESSARY AGREEMENTS OR
PURCHASE ORDERS
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 FY 16/17; and
WHEREAS, the NBACP bid the chemicals on April 12, 2016, and seventeen
(17) bids were received and opened on May 5, 2016 in accordance with applicable law;
and
WHEREAS, Sterling Water Technologies was the apparent low bidder for the C-
6288 polymer or equivalent, and the WE -1152 polymer or equivalent; and
WHEREAS, Sterling Water Technologies' bid was non - responsive because the
bid failed to comply with bidding instructions requiring bidders to demonstrate the
effectiveness of proposed polymers to coagulate, flocculate and de -water sludge; and
WHEREAS, the lowest responsive bid for C -6288 polymer or equivalent, and
WE -1152 polymer or equivalent was submitted by SNF/Polydyne; 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 Hypochlorite
B. Univar USA, Inc. for Sodium Bisulfite
C. Thatcher Chemicals for Ferric Chloride
D. CalChem 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); and
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
11
WHEREAS, the bulls 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.
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 2016/17 bid package
( "Standard Agreement ") and submission of all required documents:
a. Univar USA, Inc., for Sodium Hypochlorite (12.5 %), $0.471 /gallon and
not to exceed $89,490.00 plus applicable sales tax.
b. Univar USA, Inc., for Sodium Bisulfite, $0.936 /gallon and not to exceed
$32,760.00 plus applicable sales tax.
c. Thatcher Chemicals, for Ferric Chloride (43 %), $438.78/dry ton and not to
exceed $39,490.20 plus applicable sales tax.
d. Cal Chem Enterprises, for Aluminum Chlorohydrate, $0.204 /pound and
not to exceed $20,400.00 plus applicable sales tax.
e. SNF/Polydyne, for C -6288 Polymer or equivalent, $1.1908 /gallon and not
to exceed $30,978.66 plus applicable sales tax.
f. SNF /Polydyne, for WE -1152 Polymer or equivalent, $1.1908 /gallon and
not to exceed $222,995, plus applicable sales tax.
3. The City Manager is authorized to execute the necessary agreements or
purchase orders to complete bulk chemical purchases for Fiscal Year 16/17.
5
North Bay Agency Chemical Pool
Chemicals for Ellis Creek WRF
Bid Summary 2016 -2017
Attachment 2
Previous Fiscal Year Prices
Ferric Cl
Hypochlorite
Bisulfite
Aluminum
Chlorohydrate
Polydyne C -6288
(or equivalent)
Polydyne WE -1152
(or equivalent)
Chemical Vendor
43%
12.5%
25%
50%
275 gallon tote
325 gallon tote
FY 15 -16
(dry ton)
(gallon)
(gallon)
(pound)
(pound)
(pound)
Brenntag Pacific
$517.00
$0.5120
$0.909
$0.3400
$1.05
$1.05
FY13 -14
$597.00
$0.4980
$0.749
$0.380
$1.18
CalChem Enterprises
FY12 -13
$720.00
$0.4780
$0.2040
n/a
$1.18
$1.18
FY11 -12
$745.00
$0.6497
$0.808
n/a
Chemtrade Chemicals
US, LLC
$1.22
$0.3200
Chemurgic
General Chemical
HASA, Inc.
$0.705
Jenfitch
$0.4500
Kemira Water Solutions
$484.00
$0.3500
Olin Corporation
$0.490
Sterling Water
Technologies
$1.1497*
$1.0590*
SNF /Polydyne
$1.1908
$1.1908
Thatcher Chemical
$438.78
$0.2805
Univar USA, Inc
$0.471
$0.936
Previous Fiscal Year Prices
FY 16 -17
$438.78
$0.4710
$0.936
$0.204
$1.1908
$1.1908
FY 15 -16
$493.70
$0.5010
$0.893
$0.246
$1.18
$1.18
FY14 -15
$517.00
$0.5120
$0.909
$0.295
$1.05
$1.05
FY13 -14
$597.00
$0.4980
$0.749
$0.380
$1.18
$1.18
FY12 -13
$720.00
$0.4780
$0.749
n/a
$1.18
$1.18
FY11 -12
$745.00
$0.6497
$0.808
n/a
$1.22
$1.22
* Sterling Water Technologies` bid for Polydyne C -6288 or equivalent and Polydyne WE -1152 or equivalent was found to be non-
responsive. Sterling Water Technologies did not comply with special bidding instructions which required bidders to demonstrate the
effectiveness of polymers to coagulate, flocculate, and de -water sludge.
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