HomeMy WebLinkAboutStaff Report 3.C 06/18/2012 • Agenda/ItenNl/#3 . C
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DATE: June 18, 2012
TO: Honorable Mayor and Members of the City Council throw City Manager
FROM: Dan St. John, F.ASCE— Director, Public s- d • •s
Remleh Scherzinger, P.E. — Utilities Engineering Manager
SUBJECT: Resolution Accepting Bids and Awarding Contracts to the Lowest Responsible
Bidders for Furnishing Chemicals for Wastewater Treatment for Fiscal Year
2012/13 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 forFurnishing Chemicals for Wastewater Treatment for
• Fiscal Year 2012/13 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 remoye 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 25
chemical companies on April 26, 2012. Sealed bids were opened on May 10, 2012 at
Vacaville's Easterly Wastewater 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 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.
Agenda Reviewer "
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City Attorney"\/\"^ Finance Director City Manage
DISCUSSION
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 Unit Cost
Univar Sodium Bisulfite (25%) $0.749 per gallon
Kemira Water, Inc. Ferric Chloride (43%) $720.00 per dry ton
Polydyne Polymer for solids thickening $10.15 per gallon
Polydyne Polymer for solids dewatering $10.15 per gallon
Olin Corporation Sodium Hypochlorite (12.5%) $0.478 per gallon
FINANCIAL IMPACTS
The FY 2012/2013 wastewater operating supplies budget is $813,000 (6600-66700-53020).
Based on the bids received the anticipated 2012-2013 cost for bid chemicals is $379,690 plus
applicable sales tax. As compared to FY 2011-2012, all chemicals decreased in unit price.
Table 1. Chemical costs comparison for the past two fiscal years.
Chemical Estimated FY 11/12 FY 12/13 FY 12/13
Name Plant Use Quantity Pricing Pricing Expense
Sodium $0.6497 / $0.478 /
Hypochlorite Disinfection/odors/filters 170,000 gallon gallon $ 81,260
Sodium $0.808 / $0.749 /
Bisulfite Dechlorination 50,000 gallon gallon $ 37,450
Ferric Hydrogen sulfide $745.00/ $720.00 /dry
Chloride removal 120 dry ton ton $ 86,400
$1.253 / $10.15 /
Polymer Solids thickening 2,900 pound gallon $ 29,435
$1.253 / $10.15 /
Polymer Solids dewatering 14,300 pound gallon $145,145
Total Anticipated Costs $379,690
Total Anticipated Costs Including
Applicable Sales Tax Estimated at 8% $410,065
ATTACHMENTS
L Resolution
2. Summary and Recommendation for FY 2012-213 Chemical Purchase
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Attachment 1
RESOLUTION ACCEPTING AND AWARDING BIDS TO THE
LOWEST RESPONSIBLE BIDDERS FOR FURNISHING
CHEMICALS FOR WASTEWATER TREATMENT FOR FISCAL
YEAR 2012/2013 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, NBACP member Vallejo Sanitation & Flood Control District
conducted a competitive bid process for bulk purchase of numerous chemicals for the
Fiscal Year 2012/13; and
WHEREAS, NBACP bid the chemicals on April 26, 2012, and eighteen (18) bids
were received and opened on May 10, 2012 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 for Sodium Bisulfite
B. Kemira Water, Inc. for Ferric Chloride
C. Polydyne for C-6288 polymer or equivalent (solids thickening)
D. Polydyne for WE-1152 polymer or equivalent (solids dewatering)
E. Olin Corporation for Sodium I-lypochlorite
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
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. Contracts 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 2012-2013 bid package ("Standard
Agreement") and Addendum No. 1 to add information for technical
specification wording and submission of all required documents:
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a. Univar, for Sodium Bisulfite, $0.749/gallon and not to exceed $37,450,
plus applicable sales tax.
b. Kemira Water Inc., for Ferric Chloride (43%), $720/dry ton and not to
exceed $86,400, plus applicable sales tax.
c. Polydyne, for C-6288 Polymer or equivalent, $10.15/gallon and not to
exceed $29,435 plus applicable sales tax.
d. Polydyne, for WE-1152 Polymer or equivalent, $10.15/gallon and not to
exceed $145,145 plus applicable sales tax.
e. Olin Corporation, for Sodium Hypochlorite (12.5%), $0.478 /gallon and
not to exceed $81,260 plus applicable sales tax.
3. The City Manager is authorized to execute the agreements and or purchase
orders necessary to complete bulk chemical purchases for Fiscal Year
2012/13.
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