To: Honorable Mayor and Members of City Council
From: Phil Brun, Utilities Director
Prepared By: Mark Holderbein, Management Analyst II
TITLE:
Title
Chemical Supplies for Potable Water Treatment Plant Facilities
LABEL
RECOMMENDED ACTION:
Recommendation
(1) Determine that the proposed three-year agreements with Chemtrade Chemicals US LLC, Thatcher Company of California, Inc., Linde, Inc., Carus LLC, for the purchase of chemical supplies for potable water treatment plant facilities, meet the requirements for procurement of supplies via existing contracts with another public agency (North Bay Chemical Agency Pool), as set forth in Napa Municipal Code Section 2.91.060; and
(2) Determine that the proposed three-year agreements with Brenntag Pacific, Inc. and Hawkins, Inc., meet the requirements for a “specialty item” as set forth in Napa Municipal Code Section 2.91.050; and
(3) Authorize the Utilities Director to negotiate and execute a three (3) year agreement for the purchase of chemical supplies for use at the three City of Napa potable water treatment with the following vendors and in the following per fiscal year amounts: (a) Chemtrade Chemicals US LLC in an amount up to $700,000 for Aluminum Sulfate; (b) Thatcher Company of California, Inc. in an amount of up to $300,000 for Sodium Hypochlorite; (c) Linde, Inc. in an amount of up to $150,000 for Liquid Oxygen; Carus LLC in an amount of up to $125,000 for Orthopolyphosphate; (d) Brenntag Pacific, Inc. in an amount of up to $250,000 for Sodium Hydroxide; and (e) Hawkins, Inc. in an amount of up to $150,000 for Potassium Permanganate; and
(4) Determine that the actions authorized by this item are exempt from CEQA.
Body
DISCUSSION:
The Water Division uses various chemicals as part of the water treatment process to provide potable water to the City of Napa. To receive competitive prices for chemical supplies, the Water Division participates in the North Bay Chemical Agency Pool (NBCAP) which is comprised of multiple local municipalities’ water treatment and wastewater treatment operations. The City of Napa has participated in the pool bid process for over 20 years. Other participating agencies include American Canyon, Benicia, Calistoga, Davis, Fairfield, Petaluma, St. Helena, Vacaville, Vallejo, West Sacramento, Napa Sanitation District, Solano Irrigation District, Yountville, and Vallejo Sanitation & Flood Control District. The NBCAP, on behalf of the participating members, advertises (Attachment 1), obtains bids (Attachment 2), and awards contracts (Attachment 3) for various treatment process chemicals that some or all agencies use in day-to-day operations. Competitive pricing is ensured, but market forces drive the cost of chemicals.
Based on the results of the NBCAP bid process, staff recommends that City Council authorize the Utilities Director to execute three (3) year agreements for chemical supplies used at all three City of Napa potable water treatment facilities pursuant to Napa Municipal Code Section 2.91.060, Procurement via Existing Contracts of Other Public Agencies, in amounts not to exceed per fiscal year, as follows on the same terms and conditions as set forth in the NBCAP agreements with such vendors: Chemtrade Chemicals US LLC at $700,000 for Aluminum Sulfate; Thatcher Company of California, Inc. at $300,000 for Sodium Hypochlorite; Linde, Inc. at $150,000 for Liquid Oxygen and Carus LLC at $125,000 for Orthopolyphosphate.
A written determination from the City Manager supporting this recommendation is included as Attachment 4.
In addition, staff recommends that the City Council authorize the Utilities Director to negotiate and execute three (3) year agreements for chemical supplies used at all three City of Napa potable water treatment facilities pursuant to Napa Municipal Code Section 2.91.050, Exceptions for Specialty Items, with the following vendors and in the following not to exceed amounts per fiscal year: Brenntag Pacific, Inc. at $250,000 for Sodium Hydroxide and Hawkins, Inc. at $150,000 for Potassium Permanganate.
A written determination from the City Manager supporting this recommendation is included as Attachment 5 and 6.
FINANCIAL IMPACTS:
There are sufficient funds budgeted and available in Water Enterprise Fund account 53060116-56310 each fiscal year for the purchase of chemical supplies required for the potable water treatment process.
CEQA:
City staff recommends that the City Council determine that the Recommended Action is exempt from CEQA pursuant to CEQA Guidelines Section 15301(a) (Existing Facilities) which exempts operation, repair, maintenance or minor alteration of existing public or private structures, facilities, mechanical equipment or topographic features involving no expansion of use beyond that previously existing.
DOCUMENTS ATTACHED:
ATCH 1 - North Bay Chemical Agency Pool Bid Invitation
ATCH 2 - North Bay Chemical Agency Pool Bid Results
ATCH 3 - North Bay Chemical Agency Pool Bid Award
ATCH 4 - Written Determination for Procurement via Existing Contracts with Other Public Agencies
ATCH 5 - Written Determination for Procurement for Specialty Items - Brenntag Pacific, Inc. for Sodium Hydroxide
ATCH 6 -Written Determination for Procurement for Specialty Items - Hawkins, Inc. for Potassium Permanganate.
NOTIFICATION:
None