HomeMy WebLinkAboutStaff Report 3.D 06/06/2011DATE: June 6, 2010
Ag- evidc/ ItP,vw # 3.D
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Pamela Tuft, Interim Director — Water Resources & Conserva , o
SUBJECT: Resolution Accepting Bids and Awarding Contracts to the Lowest Responsible
Bidders for Furnishing Chemicals for Wastewater Treatment for Fiscal Year
2011/12 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 2011/12 and authorizing the City Manager to execute the necessary agreements or
purchase orders on behalf of the City.
BACKGROUND
Large quantities of chemicals are used, in the treatment of wastewater at the Water Recycling
Facility. These chemicals are used in a number of different operations at the plant, and are
necessary to meet the regulatory requirements which govern those processes. These chemicals
range from coagulants used to remove solids, to chemicals used to neutralize chlorine during the
final dechlorination process. The City of Petaluma is part of the North Bay Agency Chemical
Pool ( NBACP) with fourteen other agencies in Northern California. The purpose of the pool is
to obtain the best possible pricing through joint purchasing. Invitation to bid was sent to 23
chemical companies on April 18, 2011. Sealed bids were opened on May 5, 2011 at Vallejo
Sanitation and Flood Control offices.
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 overview of costs for each chemical since inception of the pool. Review
of the summary illustrates that over time, some costs have increased and others have decreased.
These variances are affected by transportation (fuel), raw material and energy costs. It is
important to notice that this year was the first year the NBCAP successfully bid solids thickening
and solids dewatering emulsion polymers. Last year the City had to administer a separate bid for
these polymers.
Agenda Review:
City Attorney Finance Director City Manager
DISCUSSI ®N
After review of the bids, it is recommended to award contracts to the following lowest
responsible bidders for the chemicals listed and the prices indicated:
Apparent Low Bidder Item
Basic Chemical Solutions Sodium Bisulfite (25 %)
Kemira Water, Inc. Ferric Chloride (43 %)
Polydyne Polymer for solids thickening
Polydyne Polymer for solids dewatering
Sierra Chemical Sodium Hypochlorite (12.5 %)
FINANCIAL. IMPACTS
Unit Cost
$0.808 per gallon
$745.00 per dry ton
$1.253 per pound
$1.253 per pound
$0.6497 per gallon
The FY 2011/12 wastewater operating supplies budget is $813,000 (6600- 66700 - 53020). Based
on the bids received the anticipated 2011 -2012 cost for bid chemicals is $444,359 plus applicable
sales tax. As compared to FY 2010 -11, all chemicals increased in unit price. Increases range
from 8% to 16 %, but due to decreased chemical usage the total chemical cost for bid chemicals
including polymer only increases 0.5 %.
Table 1 Chemical costs com arison for the past two fiscal years.
Chemical
Estimated
FY 10 /11
FY 11/12
FY 11/12
Name
Plant Use
Quantity
Pricing
Pricing
Expense
Sodium
$0.5995/
$0.6497/
Hypochlorite
Disinfection/odors /filters
170,000
gallon
gallon
$110,449
Sodium
$0.739/
$0.808/
Bisulfite
Dechlorination
70,000
gallon
gallon
$56,560
Ferric
Hydrogen sulfide
$640.00/
$745.00/
Chloride
removal
120
dry ton
dry ton
$89,400
$1.08/
$1.253/
Polymer
Solids thickening
30,000
pound
gallon
$37,590
$1.08/
$1.253/
Polymer
Solids dewatering
120,000
pound
gallon
$150,360
Total Anticipated Costs
$444,359
Total Anticipated Costs Including
Applicable Sales Tax Estimated at 9%
$484,351
ATTACHMENTS
1. Resolution Bid
2. Summary and Recommendation for FY 2011/12 Chemical Purchases
pil
Attachment 1
1 RESOLUTION ACCEPTING AND AWARDING BIDS TO THE
2 LOWEST RESPONSIBLE BIDDERS FOR FURNISHING
3 CHEMICALS FOR WASTEWATER TREAMENT FOR FISCAL
4 YEAR 2011/12 AND AUTHORIZING THE CITY MANAGER TO
5 EXECUTE THE NECESSARY AGREEMENTS OR PURCHASE
6 ORDERS ON BEHALF OF THE CITY
7
8 WHEREAS, the City of Petaluma uses bulk chemicals in its operation of the Ellis Creek
9 Water Recycling Facility; and
10
11 WHEREAS, the City of Petaluma joined the North Bay Agency Chemical Pool
12 ( NBACP) in 2009 to obtain lowest possible pricing through joint purchasing; and
13
14 WHEREAS, NBACP member Vallejo Sanitation & Flood Control District conducted a
15 competitive bid process for bulk purchase of numerous chemicals for the Fiscal Year
16 2011/12; and
17
18 WHEREAS, NBACP bid the chemicals on April 18, 2011, and eighteen (18) bids were
19 received and opened on May 5, 2011 in accordance with applicable law; and
20
21 WHEREAS, the lowest responsive bids for the chemicals to be purchased through
22 NBACP by the City of Petaluma were:
23
24 A. Basic Chemical Solutions for Sodium Bisulfite
25 B. Kemira Water, Inc. for Ferric Chloride
26 C. Polydyne for C -6288 polymer or equivalent (solids thickening)
27 D. Polydyne for WE -930 polymer or equivalent (solids dewatering)
28 E. Sierra Chemical for Sodium Hypochloride
29
30 WHEREAS, as a member of NBACP, the City of Petaluma is entitled to purchase bulk
31 chemicals from the NBACP's low bidders at the bid price stated; and
32
33 WHEREAS, the bulk chemical purchases contemplated by this resolution are exempt
34 from other competitive bid requirements of Petaluma Municipal Code Chapter 4.04
35 pursuant to Petaluma Municipal Code Section 4.04.100, "Cooperative Purchasing
36 Programs "; and
37
38 NOW THEREFORE DE IT RESOLVED by the City Council of the City of Petaluma
39 as follows:
40
3
Attachment 1
'The hereby accepted.
l 1. bids .for chemicals listed above are h y p
2 2.- Contracts are awarded to the following vendors fo "r the bulk "chemicals listed
3 below in conformance with the NBACP lowest responsive bids, conditioned
4 on timely execution by each vendor of the Standard Agreement contained in
5 the NBACP Chemical Requirements for 2011 -2012 bid package ( "Standard
6 Agreement') and Addendum No. 1 to add. information for technical
7 specification wording and :submission of all required documents:
8 a. Basic Chemical Solutions, for Sodium Bisulfite, $0:808 /gal and not to
9 exceed $56,560, plus applicable sales tax.
10 b. Kemir . Water, Inc. for Ferric. Chloride (43 %), $745 /dry ton and not to
11 exceed $89,400, plus applicable sales tax.
12 c. Polydyne, for C- 6288 Polymer or equivalent, $1.253 /pound and not to
13 exceed $37;590 plus.applicable sales tax.
14 d. Po'lydyne, for WE -930 Polymer or equivalent; $1.253 /pound and not to
15 exceed $150,360 plus applicable sales tax.
16 e. Sierra Chemical for Sodium Hypochloride (12.5 %0), $0.6497/gal and not to
17 exceed $110,449 plus applicable sales tax.
18 3. The City Manager is authorized to execute the agreements and or purchase
19 orders necessary to complete bulk chemical purchases for Fiscal Year
20 2011/12.
21
0
N
c
d
E
L
Q
O LL
O 0:
0
y O
C N N
01
00 N a-i
Q U 'q
io N O
U — `
W
N nC7
L w .E
u n E
m � N
m 'E
L m
O u
Z
O
M r ( n
e
W d
y
N
N
o --
a
cc
cc
N c
t0 'd
N
C
w
N
M
N
N
4,
>'
`o
0
a
c
°
O
co
O
00
N
0
m
N
Of
Q
0
1 9
LL
Oo
LO
O
l0
�.
O
O
O
O
Z
ip
e
v
N
O
A
0
N O N
O
(A
0
O
O
Cl
_
O
V
°
e
o
v
a
Z'
�
LL
a
0)
N..
LO
V
(n
00
Cl)
O
(A
CO
�O
c
O
(
N
9
N
O
� (
N
W
"
CL
rn
o
N'
m
°i'
m
�
�
LOO
d
CO
Cl)
N
T
N
00
N
a0
M
H
O
(
r-
O
0
O
N
N
K'
f�
N
N
0
N
0
0
0)
N
C
O
c
°_
N
c
V
(0
a
V
(
°
c
>
C
N
O
d
.D.
S
fn
. c
(0 N
V
V
O
m
V O7
Ci
m
p C o
N
C
O
C
y
y
V
-E
7
=. Q
w
J
(
a '>D
l d
�d
LL O
r>wm2mca00Z
(0 (6
L co
Q O7
L'
O'
O (0
a w
I iii in
M W
M O
N •
M W
M O
N
00 O) 1- lD 't- 'O) O
O M V' N O) 1- O
o
M d9 fR FA ,EA EA fA
1l (D O O
a O) '(n W 0
(O tD 1` h �
0 0 0 0 0
P- N O 0 C)
(3) 0 O
A U N c (0 �
(O 0 OD.. W 0 I-' I-
0 0 0 0 0 0 0
O 00 p 0
..0 . 0Op 0
O 0 N O, V O
O O O O O q' N
V'. N +O 0 Vi N. _
'(O 'IT qT M
e» �» Fs E» 6-,P :.»
u
D r O 06 OD 1-� (O L6
L ">— o O O O O
t LL LL LL LL U- U-,