sr-092810-3dCity Council Meeting: September 28, 2010
Agenda Item: ~®~
To: Mayor and City Council
From: Carol Swindell, Director of Finance
Subject: Various Water Treatment Chemicals
Recommended Action
Staff recommends City Council split award of bid #3001 between: 1) Olin Chlor Alkali
Products, 2) Basic Chemical Solutions LLC, 3) Brenntag, and 4) Univar for the purchase
of various water treatment chemicals as required by the Water Resources Division in an
estimated amount of $227,000 for the remainder of fiscal year 10/11. Vendors did not
offer renewal options.
Executive Summary
Water treatment chemicals are needed for the operation of new facilities to remove
contamination from the Charnock groundwater sub-basin. Additional treatment
chemicals are needed for the disinfection, softening, and fluoridation of the City's
domestic water supply. Staff recommends that purchase orders be issued to Olin Chlor
Alkali Products for the purchase of Sodium Hypochlorite, Basic Chemical Solutions for
Sodium Bisulfite, Univar for Sodium Hydroxide and Brenntag for Sulfuric Acid. The
estimated annual expenditure for Fiscal Year 2010/11- is $227,000 (before sales tax).
Funds are available in the Water Resources Division budget.
Background
The Charnock Well Field Restoration Project involves implementation of a water
treatment system to remove groundwater contamination from the Charnock
groundwater sub-basin and restore this resource as a water supply for the City. The
1
treatment system will use filtration with granular-activated carbon to treat water from
three contaminated wells at the Charnock Well Field. The project also provides
upgrades to the existing Arcadia water treatment plant including construction of new
systems for drinking water disinfection, softening, and fluoridation.
On Februar y 26, 2008, the City Council authorized the execution of a Design-Build
Agreement for preconstruction services for the Project with Black & Veatch
Construction, Inc. On November 25, 2008, the City Council certified the Final
Environmental Impact Report (FEIR) for the Project and adopted a resolution making
necessary California Environmental Quality Act findings and approving a Mitigation
Monitoring Program. On March 24, 2009, the City Council authorized the City Manager
to negotiate and execute an amendment to the Design-Build Agreement for purchasing
long lead items such as water treatment equipment to ensure timely procurement and
delivery and for providing limited demolition services to prepare for future construction.
On May 26, 2009, the City authorized the City Manager to negotiate and execute a
Guaranteed Maximum Price amendment to the Design-Build Agreement with Black and
Veatch Construction, Inc. for construction of the Charnock Well Field Restoration
Project. On July 13, 2010, the City Council authorized the City Manager to negotiate
and execute an agreement with Siemens Water Technologies Corporation for the
operations, maintenance and management services (OMMS) of the Charnock Well
Field for two years.
Discussion
The construction of the Charnock Well Field Restoration Project facilities is
approximately 90% complete. The treatment system consisting of filtration with granular
activated carbon to treat water from the three contaminated wells at the Charnock Well
Field have been fabricated and delivered, while the mechanical and electrical
construction needed to commission the systems is being completed. Upgrades to the
existing Arcadia water treatment plant including the construction of new systems for
drinking water disinfection, softening, and fluoridation are near completion. Portions of
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the new drinking water treatment systems are scheduled to be tested and
commissioned in mid-October 2010. According to the Design-Build Agreement, the City
is to purchase of various chemicals as needed for plant start up testing and routine
operations.
Vendor Selection
In March 2010, the City published Notices Inviting Bids to provide various water
treatment chemicals as required by the Water Treatment Plant in accordance with City
specifications. The bid was posted on Planet Bids and notices were advertised in
accordance with City Charter and Municipal Code provisions. Four responsive bids
were submitted and publically opened on April 8, -2010 per attachment A. Bids were
evaluated based on the ability to meet specifications, competitive pricing and
completeness of bid response. Based on these criteria, vendors are recommended for
bid award based on the prices bid for each individual chemical.
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Financial Impacts & Budget Actions
The total amount of the purchase orders to be awarded is estimated at $227,000.
Funds are available in the adopted fiscal year 10/11 budget as follows:
1) Olin Chlor Alkali $89,000 ($54,000 account 05672.544011 and $35,000 account
05673.544011)
2) Basic Chemical Solutions LLC $30,000 ($12,000 account 05672.544011 and $18,000
account 05673.544011)
3) Brentag $75,000 account 05673.544011
4) Univar $33,000 account 05673.544011
Prepared by: Kellee Mac Donald, Senior Buyer
Approved:
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Carol Swindell
Director of Finance
Attachments: Attachment A -Pricing
Forwarded to Council:
Rod Gould
City Manager
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Page 2 of 2
Attachment A (continued)
BID #: 3001
TITLE: Provide various water treatment chemicals as required by the Water Treatment Plant.
Chemicals Est Ann Use Price Notes Price Ext. Price Notes
~'~ ~ `"r ?~Ear~<
N~ C ~~'~~ a
~,, 169,200 gal d 0.7523 / allon 127,289.16 a,7oo+gal
R~t ~s; 9 nor„e.~e~
No bid
37
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r"~~
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~ 46,524 al
g
1. /g on
4
No bid
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Ammonium Sulfate 9,996 gal No bid
Sodium Fluoride 48,000 Ibs No bid
TIERED P RICING
Chemicals Qty Per delivery P Prl t Price Ext. Price Notes
NaOCI (Sodum
Hypochlorite)
1,000
gal
on
-
1.0211 /gallon
1,021.10 1,000-1,999
gal deliveries
NaOCI (Sodum
Hypochlorite) 2,000 al
9 / allon
9
-
0.9673 /gallon
1,934.60 2,000-4,699
gal deliveries
Renewal Option Period 2
a off d Univar USA, Inc would be most interested in extending any
(7/1/11-6/30/12) agreement for periods 2, 3 and 4. This would be negotiated
Renewal Option Period 3 at the time of renewal and pricing would be based upon
(7/1/12-6/30/13) d market conditions at that time. Documentation from our
Renewal Option Period 4 vendors, supporting any change in pricing, would be provided
(7/1/13-TBD) d and any extension would be mutually agreed upon by Univar
and the Citv.
BID CLOSE DATE: 4/8/2010
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