HomeMy WebLinkAboutStaff Report 4.D 06/18/2018Agenda Item #4.D
DATE: June 18, 2018
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Dan St. John, KASCE — 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 used at the Wastewater Treatment Plant for
Fiscal Year 18/19, 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 18/19 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 award contracts for bulk chemical deliveries
based on a competitive bid process conducted annually by the North Bay Agency Chemical Pool
purchasing consol dum.
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.
Invitations to bid, issued by NBACP, were sent to 27 chemical companies on April 10, 2018.
Sealed bids were opened on May 3, 2018, at the City of Napa's Water Treatment Plant. The
bidders and chemical bid prices for chemicals used at the treatment plant are listed in a summary
table in Attachment 2. Historical pricing for each chemical over the last five years is also
included.
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
$0.654 per gallon
$1.053 per gallon
$756.00 per dry ton
$0.264 per pound
$9.380 per gallon
$9.648 per gallon
The overall chemical budget proposed for FY 18/19 is $563,307. The chemical budget for FY
18/19 increased 27 percent due to substantial increases in chemical prices, and an increase in
expected chemical usage related to processing high strength waste. Ferric chloride and
dewatering polymer are used in the treatment of high strength waste, and as the plant begins
accepting high strength waste from local industries their usage will increase proportionally. The
prices, for sodium hypochlorite and the solids dewatering polymer WE -1152, increased by 23
percent and 26 percent respectively. The. largest price increase was a 51 percent jump in the cost
for ferric chloride.
Table 1. Chemical costs and estimated quantities
Estimated
FY 18/19
FY 18/19
Chemical Name Plant Use
Quantity
Pricing
Expense
Sodium
$0.654/
Hypochlorite Disinfection/odors/filters
200,000
gallon
$130,800.00
$1.053/
Sodium Bisulfite Dechlorination
40,000
gallon
$ 42,120.00
$756.00/
Ferric Chloride Hydrogen sulfide removal
95
dry ton
$ 71,820.00
Aluminum Coagulant for Tertiary
198,000
$0.264/
Chlorohydrate Filtration
pound
$ 25,872.00
$9.380/
Polymer (C-6288) Solids thickening
1,620
( gallon
$ 15,195.60
$9.648/
Polymer (WE -1152) Solids dewatering
24,375
gallon
$235,170.00
Estimated Costs, no tax
$520.977.60
Estimated Costs Including Sales Tax 8.125%
$563.307.03
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FINANCIAL IMPACTS
The FY 18/19 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
18/19 cost for bid chemicals is $563,307.03.
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 18/19 AND AUTHORIZING
THE CITY MANAGER TO EXECUTE THE NECESSARY AGREEMENTS OR
PURCHASE ORDERS
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 bulls purchase
of numerous chemicals for the FY 18/19; and
WHEREAS, the NBACP bid the chemicals on April 10, 2018, and fourteen (14)
bids were received and opened on May 3, 2018 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:
1. Univar USA, Inc. for Sodium Hypochlorite
2. Univar USA, Inc. for Sodium Bisulfite
3. Kemira Water Solutions for Ferric Chloride
4. CalChem Enterprises for Aluminum Chlorohydrate
5. SNF/Polydyne for C-6288 polymer or equivalent (solids thickening)
6. 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 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 fourteen agencies that cooperate in the purchasing
consortium.
0
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 bulls 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 2018/19 bid package
("Standard Agreement") and submission of all required documents:
a. Univar USA, Inc., for Sodium Hypochlorite (12.5%), $0.654/gallon and
not to exceed $130,800.00 plus applicable sales tax.
b. Univar USA, Inc., for Sodium Bisulfite, $1.053/gallon and not to exceed
$42,120.00 plus applicable sales tax.
c. Kemira Water Solutions, for Ferric Chloride (43%), $756.00/dry ton and
not to exceed $71,820.00 plus applicable sales tax.
d. Cal Chem Enterprises, for Aluminum Chlorohydrate, $0.264/gallon and
not to exceed $25,872.00 plus applicable sales tax.
e. SNF/Polydyne, for C-6288 Polymer or equivalent, $9.380/gallon and not
to exceed $15,195.60 plus applicable sales tax.
f. SNF/Polydyne, for WE -1152 Polymer or equivalent, $9.648/gallon and
not to exceed $235,170, 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 18/19.
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North Bay Agency Chemical Pool
Chemicals for Ellis Creek WRF
Bid Summary 2018-2019
Attachment 2
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Aluminum
Polydyne C-6288
I
Polydyne WE -1152
!I Ferric Cl
Hypochlorite Bisuifite
Chlorohydrate
(or equivalent]
(or equivalent]
Chemical Vendor 43%
12.5% 25%
50%
275 gallon tote
325 gallon tote
(dry ton)
(gallon) (gallon)
(pound)
(gallon)
(gallon) j
Brenntag Pacific
no bid
$1.310
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�CalChem Enterprises
$0.2640
HASA Inc
no bid
Chemurgic
$1.310
Kemira Water Solutions
$756.00
Olin Corporation I
$0.729
(Sterling Water C
no bid
no bid
Technologies
SNF/Polydyne
$9.380
$9.648
Thatcher Chemical
no bid
Univar USA, Inc
$0.654
( $1.0530
I
Previous Fiscal Year Prices
FY 18-19
$756.00
$0.6540
$1.0530
$0.264
$9.3800
$9.6480
FY 17-18
$500.00
$0.5290
$1.0296
$0.19
$7.6495
$7.6495
FY 16-17
$438.78
$0.4710
$0.936
$0.21
$10.24
$10.24
FY 15-16
$493.70
$0.5010
$0.893
$0.25
$10.15
$10.15
FY14-15
$517.00
$0.5120
$0.909
$0.30
$9.43
$9.03
FY13-14
$597.00
$0.4980
$0.749
$0.38
$10.15
$10.15
* no bid., indicates a company has bid on the chemical in recent years
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