SR-05-27-2014-3BCity Council Meeting: May 27, 2014
Agenda Item: J
To: Mayor and City Council
From: Martin Pastucha, Director of Public Works
Subject: Purchase of Sodium Hypochlorite
Recommended Action
Staff recommends that the City Council award Bid #4134 to Olin Corporation dba Olin
Chlor Alkali Products, a California -based company, in an amount not to exceed
$133,000 for the purchase and delivery of sodium hypochlorite for fiscal year 2014 -15,
with two additional one -year renewal options at up to a 10% increase in each year, for a
total amount not to exceed $440,230 over a three -year period, with future year funding
contingent on Council budget approval.
Executive Summary
In March 2014, the City solicited bids for the purchase of sodium hypochlorite used in
water treatment. After reviewing three bids received, staff recommends Olin Corporation
dba Olin Chlor Alkali Products to provide sodium hypochlorite at specified unit prices
plus applicable tax for a total not to exceed amount of $440,230 over a three -year
period.
Background
Water treatment chemicals are needed at the City's Charnock and Arcadia Treatment
facilities to remove contaminants from the groundwater and for the disinfection,
softening and fluoridation of the City's domestic water supply on an ongoing basis.
Sodium hypochlorite is used to aid in the removal of iron and manganese and to
disinfect the water.
On June 28, 2011, Council awarded Bid #3054 to JCI Jones Chemicals, Inc. for the
purchase and delivery of sodium hypochlorite for a three -year term, for a total not to
exceed amount of $350,000.
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Discussion
Vendor Selection
In March 2014, the City published Notices Inviting Bids to provide sodium hypochlorite
as required by the Water Resources Division in accordance with City specifications. The
bid was posted on the City's on -line bidding site, and notices were advertised in the
Santa Monica Daily Press in accordance with City Charter and Municipal Code
provisions. There were 380 vendors notified and 22 vendors downloaded the bid. Three
bids were received and publicly opened on March 31, 2014 per Attachment A. The bids
were evaluated on price, experience, performance testing, proximity to the City, and
compliance with City specifications. Based upon these criteria, Olin Corp. is
recommended as the best bidder for the purchase of sodium hypochlorite in accordance
with City specifications.
Financial Impacts & Budget Actions
The purchase order to be awarded to Olin Corporation dba Olin Chlor Alkali Products is
for an amount not to exceed $133,000. Funds are available in the FY 2014 -15 Proposed
Budget in division 25671. The purchase order will be charged to the following accounts:
25672.544011 $ 56,500
25673.544011 $ 76,500
TOTAL $133,000
Budget authority for subsequent years will be requested in each budget cycle for
Council approval. Future funding is contingent upon Council approval.
Prepared by: Gil Borboa, Water Resources Manager
Approved: Forwarded to Council:
Martin Pastucha Rod Gould
Director of Public Works City Manager
Attachment: A — Bid Summary
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ATTACHMENTA
BID #: F4134 BID CLOSE DATE: 4/1/2014
Rm nn P. F�RNICHAKM nPI n/FP<nDll IM HYPnrWI nRITFAC RFM IIRFD BY THE WATER TREATMENT PLANT.
Olin 'Corp., dha Olin ChlorAlkali Produ=,
U9ivar,
Jones Chemicals, Im(JCI)
Track,
- Kent WA,
Torrance, LA
PRICING:
ESTIMATED
STORAGE
ANNUAL
CAPACITY PER
CONCENTRATION
USAGE
NUMBEROF
TANK
DELIVERY
CHEMICAL
{% SOLUTION)
(GALLONS)
TANKS
(GALLONS /TANK)
MODE
ARCADIA WATER TREATMENT
PLANT
1228 S BUNDY DR.
LOS ANGELES, CA 90025
PRICEPERGALLON GRAND TOTAL
PRICE PER GALLON GRANDTOTAL
PRICE PER GALLON GRAND TOTAL
$ 0.574 $ 37,310.000
$ 0.9144 $ 59,436.000
5 0.5795 $ 37,667.500
TANK
SODIUM HYPOCHLORITE
12.5
65000
2
5800
I TRUCK
$ -
$
$
DELIVERY FEE PER DELIVERY
DELIVERY FEE PER DELIVERY
DELIVERY FEE PER DELIVERY
CHARNOCK TREATMENT
I
PLANT
11375 WESTMINSTER
LOS ANGELES CA 90066
PRICE PER GALLON GRAND TOTAL
PRICE PER GALLON GRAND TOTAL
PRICE PER GALLON GRAND TOTAL
$ 0.574 $ 54,530.000
5 0.9144 $ 86,868.000
$ 0.5795 $ 55,052.500
SODIUM HYPOCHLORRE
12.5
95000
1
5200
TANK
$ -
$ -
$ -
TRUCK
DELIVERY FEE PER DELNERY
DELIVERY FEE PER DELIVERY
DELIVERY FEE PER DELIVERY
GRANDTOTAL:
91,840.000
$ 146,304.000
$ 92,720.000
PROPOSED MANUFACTURER:
OLIN
UNIVAR
ICI JONES CHEMICALS, INC.
PAYMENT TERMS:
NET 30
NET 30 DAY
NET 30 DAY
MPRICE
RENEWAL
OPTIONS:
--
RENEWALS BASED MUTUAL
THAN +OTATIOOFCURRENT
C
gGREEMENT /ACCEPTANCE, SUPPLIER TO
YEAR 2:
DOCUMENTA TION AND MUTUAL
PROVIDE DOCUMENTATION TO SUPPORTANY
10% INCREASE
AGREEMENT
PROPOSED PRICE CHANGES.
RENEWALS BASED ON MUTUAL
NO MORE THAN +OR -10 %OF CURRENT
AGREEMENT /ACCEPTANCE, SUPPLIERTO
YEARS:
PRICE WITH DOCUMENTATION AND MUTUAL
PROVIDE DOCUMENTATION TO SUPPORTANY
10% INCREASE
AGREEMENT
PROPOSED PRICE CHANGES.
PRICE IS PLUSANYAPPLICASLESTATE OR
LOCAL TAXES, IFANY. DEMURRAGEAFTER2
NOTES:
HOURS FREE TIME FOR OFF LOADING.
RENEWAL OPTIONS UPON MUTUAL
AGREEMENT.