To: Honorable Mayor and Members of City Council
From: Phil Brun, Utilities Director
Prepared By: Sara Gallegos, Management Analyst II
TITLE:
Title
Sodium Hydroxide Chemical Purchase
LABEL
RECOMMENDED ACTION:
Recommendation
Authorize the Utilities Director to execute a contract with Brenntag Pacific, Inc., in an amount not to exceed $200,000 for Sodium Hydroxide for use at the three City of Napa potable water treatment facilities, and determine this action is exempt from CEQA.
Body
DISCUSSION:
The Water Division uses chemicals as part of the water treatment process to provide potable water to the City of Napa. To receive competitive prices for chemicals, the Water Division participates in the North Bay Chemical Agency Pool (NBCAP) which is comprised of various local municipalities' water treatment and wastewater treatment operations. The City of Napa has participated in the pool bid process for over 20 years. The NBCAP members collectively advertise, obtain bids, and award bids in May each year for treatment process chemicals that most agencies use in day-to-day operations. Competitive pricing is ensured, but market forces drive the cost of chemicals.
Halfway into the fiscal year, Brenntag alerted its customers of a significant price increase from $490 to $690 per unit, due to global demands exceeding supply, increased global costs of main ingredients, and low nationwide inventory creating supply chain issues and product shortages. In addition to this 41% price increase, due to post-drought water quality, the City had to increase the dosage of sodium hydroxide to optimize the treatment process. Regionally after the October storms raw water quality was especially challenging due to post-drought runoff and fires in the watersheds of the State Water Project system. The result is a spike in costs for chemicals necessary to ensure clean, safe, potable water. Historically, our total annual expenditures for sodium hydroxide were below $125,000 and w...
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