HomeMy WebLinkAboutStaff Report 5.C 06/05/2017DATE: June 5, 2017
Agenda Item #5.0
TO: Honorable Ma or and Members of the City Council through City Manager
FROM: Da St. CE — Director, Public Works and Utilities
Lea . W er, 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
17/18 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 17/18 and Authorizing the City Manager to Execute the
Necessary Agreements or Purchase Orders.
BACKGROUND
Bulk quantities of chemicals are used in a number of different processes to treat wastewater at
the Ellis Creek 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 bulk chemical deliveries
for FY 17/18 to vendors based on a competitive bid process conducted annually by the North
Bay Agency Chemical Pool purchasing consortium. This will assure that the City has an annual
supplier of these critical chemicals needed for proper treatment of wastewater and biosolids, and
at a competitive price based on the economies of scale in the bidding process.
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 24 chemical
companies on April 11, 2017. Sealed bids were opened on May 4, 2017 at the City of Fairfield's
Water Treatment Plant.
A Bid Summary, which lists the bidders and bids for chemicals used at the treatment plant, as
well as the NBACP's Recommendation for Chemical Purchase, is included as Attachment 2. At
the bottom of the bid summary is an 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, 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.
Kemira Water Solutions
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
$0.529 per gallon
$1.0296 per gallon
$500.00 per dry ton
$2.14 per gallon
$7.6495 per gallon
$7.6495 per gallon
Historical chemical prices are shown in the chemical bid summary in Attachment 2. Overall, the
total projected chemical cost for FY 17/18 is estimated to be ten percent lower than last year's
cost. The reduction in cost is largely due to a decrease in polymer price.
Table 1. Chemical costs and estimated quantities
2
Estimated
FY 17/18
FY 17/18
Chemical Name
Plant Use
Quantity
Pricing
Expense
Sodium
$0.529/
Hypochlorite
Disinfection/odors /filters
200,000
gallon
$105,800.00
$1.0296 /
Sodium Bisulfite
Dechlorination
40,000
gallon
$41,184.00
$500.00 /
Ferric Chloride
Hydrogen sulfide removal
90
dry ton
$45,000.00
Aluminum
Coagulant for Tertiary
Chlorohydrate
Filtration
8,850
$2.14 / gallon
$18,939.00
$7.6495 /
Polymer (C -6288)
Solids thickening
2,475
gallon
$18,932.51
$7.6495/
Polymer (WE -1152)
Solids dewatering
23,725
gallon
$181,484.39
$411,339.90
Estimated Costs, no tax
$444,761.27
Estimated Costs Including Sales Tax 8.125%
2
FINANCIAL IMPACTS
The FY 2017/18 wastewater operating supplies budget (6600- 66700 - 53020) of $726,500 is
sufficient to cover these expenditures. As summarized in the preceding table, the anticipated FY
17/18 cost for bid chemicals is $444,761.27.
ATTACHMENTS
1. Resolution
2. NBCAP Chemical Bid Summary
Attachment 1
RESOLUTION ACCEPTING BIDS AND AWARDING CONTRACTS TO THE
LOWEST RESPONSIBLE BIDDERS FOR FURNISHING CHEMICALS FOR
WASTEWATER TREATMENT FOR FISCAL YEAR 17/18 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 17/18; and
WHEREAS, the NBACP bid the chemicals on April 11, 2017, and seventeen
(17) bids were received and opened on May 4, 2017 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 Hypochlorite
B. Univar USA, Inc. for Sodium Bisulfite
C. Kemira Water Solutions 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
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 fourteen agencies that cooperate in the purchasing
consortium.
M
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 2017/18 bid package
( "Standard Agreement ") and submission of all required documents:
a. Univar USA, Inc., for Sodium Hypochlorite (12.5 %), $0.529 /gallon and
not to exceed $105,800.00 plus applicable sales tax.
b. Univar USA, Inc., for Sodium Bisulfite, $1.0296 /gallon and not to exceed
$41,184.00 plus applicable sales tax.
c. Thatcher Chemicals, for Ferric Chloride (43 %), $500.00 /dry ton and not to
exceed $45,000.00 plus applicable sales tax.
d. Cal Chem Enterprises, for Aluminum Chlorohydrate, $0.214 /gallon and
not to exceed $18,939.00 plus applicable sales tax.
e. SNF /Polydyne, for C -6288 Polymer or equivalent, $8.2710 /gallon and not
to exceed $18,932.51 plus applicable sales tax.
f. SNF /Polydyne, for WE -1152 Polymer or equivalent, $8.2710 /gallon and
not to exceed $181,484.39, 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 17/18.
North Bay Agency Chemical Pool
Chemicals for Ellis Creek WRF
Bid Summary 2017 -2018
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 16 -17
(dry ton)
(gallon)
(gallon)
(gallon)
(gallon)
(gallon)
Brenntag Pacific
$493.70
$0.5010
$1.100
$2.780
$10.15
$10.15
FY14 -15
$517.00
$0.5120
$0.909
$3.334
$9.03
CalChem Enterprises
FY13 -14
$597.00
$0.4980
$2.1400
$4.294
$10.15
$10.15
FY12 -13
$720.00
$0.4780
$0.749
n/a
HASA, Inc.
$10.15
$0.805
Jenfitch
Kemira Water Solutions
$500.00
Olin Corporation
$0.578
Sterling Water
Technologies
$10.632
$9.775
SNF /Polydyne
$7.650
$7.650
E$1.0296
Thatcher Chemical
$572.00
Univar USA, Inc
$0.529
Previous Fiscal Year Prices
FY 17 -18
$500.00
$0.5290
$1.0296
$2.140
$7.6495
$7.6495
FY 16 -17
$438.78
$0.4710
$0.936
$2.305
$10.24
$10.24
FY 15 -16
$493.70
$0.5010
$0.893
$2.780
$10.15
$10.15
FY14 -15
$517.00
$0.5120
$0.909
$3.334
$9.03
$9.03
FY13 -14
$597.00
$0.4980
$0.749
$4.294
$10.15
$10.15
FY12 -13
$720.00
$0.4780
$0.749
n/a
$10.15
$10.15