REPORT TO THE CITY COUNCIL
FROM: BROCK D. BUCHE, PE, PLS, Interim Director
Department of Public Utilities
BY: BUD TICKEL, Assistant Director - Water
Department of Public Utilities - Water Division
MARTIN WENDELS, Project Manager
Department of Public Utilities - Water Division
SUBJECT
Title
Actions related to the extension and increase of a Requirements Contract for Bulk Sodium Hydroxide
with Univar USA Inc. (Bid File 9429) (Citywide):
1. Reject all bids for the Requirements Contract for Bulk Sodium Hydroxide (Bid File 9601)
2. Approve an increase to the Requirements Contract with Univar USA Inc. (Univar) to an annual amount of $1,443,365, and extend the contract for one additional year (Bid File 9429) (Citywide)
Body
RECOMMENDATIONS
Staff recommends that Council reject all bids for the Requirements Contract for Bulk Sodium Hydroxide Bid File 9601; and approve an increase in the contract amount to $1,443,365 and extend the duration for one additional year for the Requirements Contract for Bulk Sodium Hydroxide (Bid File 9429).
EXECUTIVE SUMMARY
The Department of Public Utilities - Water Division (Water) routinely uses sodium hydroxide as an additive in finished drinking water at the Northeast Surface Water Treatment Facility (NESWTF), Southeast Surface Water Treatment Facility (SESWTF) and Tank 3 Surface Water Treatment and Water Storage Facility (T-3).
On October 5, 2021 bids were opened for the Requirements Contract for Bulk Sodium Hydroxide, 25% and 50%. Four vendors provided bids and all four vendors were considered non-responsive. Staff recommends that Council reject all bids for Bulk Sodium Hydroxide (Bid File 9601).
During a review of Bid File 9429, it was discovered that the original bid specifications allowed for an additional two one-year terms that were not captured in the approved February 8, 2018 Council Report. An approval by Council to extend BF 9429 by an additional one year and increase the annual contract amount to $1,443,365 will allow for uninterrupted production of safe drinking water.
BACKGROUND
Bulk Sodium Hydroxide is used in the post-treatment process at the NESWTF, SESWTF and T-3 treatment facilities for corrosion control in the potable water distribution system. It is considered to be an effective enhancement chemical for the City of Fresno’s water supply by conditioning raw water and enhancing the chemical reaction with the primary coagulant, to facilitate effective cleansing of the water. It also adjusts the pH of the treated water entering the water distribution system and ultimately the end user’s facilities (homes, businesses, etc.), thereby controlling the corrosive quality of the treated water within water mains, pipes and other appurtenances.
On February 29, 2019, City Council approved a contract with Univar USA Inc. for the purchase and delivery of Bulk Sodium Hydroxide in the amount of $307,998.68. With an increase in demand for product due to unanticipated increases of production at the SESWTF, additional funding was required. On April 8, 2021, City Council approved an interim contract with Univar USA Inc., in an amount not to exceed $1,037,000 for the purchase and delivery of bulk sodium hydroxide. This interim contract will expire on March 19, 2022.
A Notice inviting Bids was published on September 7, 2021. The bid opening was October 5, 2021, and there were four bidding vendors. All four bidders were determined to be non-responsive due to requested exceptions to the specifications or failure to submit required documentation.
Staff has determined that the exceptions in the bid are material or would materially alter the terms of the contract and therefore the bids must be considered non-responsive. Upon review of Bid File 9429, it was discovered that the original bid specifications allowed for additional two one-year terms that were not captured in the approved February 8, 2018 Council Report. Staff recommends that Council approve an additional one year and increase the annual contract amount to $1,443,365 allowing for uninterrupted production of safe drinking water.
ENVIRONMENTAL FINDINGS
By definition provided in the California Environmental Quality Act Guidelines Section 15378, the award is this requirements contract does not qualify as a “project”.
LOCAL PREFERENCE
Local preference was not applicable because this item is rejecting all bids and is an extension of an existing contract.
FISCAL IMPACT
The General Fund is not impacted by this citywide expenditure, as the appropriations for the purchase of the Bulk Sodium Hydroxide is included in the FY 2022 and FY 2023 Water Enterprise Fund budget.
Attachments:
Attachment 1 - Bid Evaluation
Attachment 2 - Notice of Award - Bid File 9429