REPORT TO THE CITY COUNCIL
December 3, 2015
FROM: THOMAS C. ESQUEDA, Director
Department of Public Utilities
BY: BUD TICKEL, Water Systems Manager
Department of Public Utilities - Water Division
RUSSELL GUILLIAMS, Water Systems Supervisor
Department of Public Utilities - Water Division
SUBJECT
Title
Award a requirements contract in the amount of $178,246 to Brenntag Pacific, Inc. for ortho poly phosphate blend for a one-year contract with provisions for two one-year extensions - Bid File 9330 (Citywide).
Body
RECOMMENDATION
Staff recommends Council award a requirements contract in the amount of $178,246 to Brenntag Pacific, Inc. for ortho poly phosphate blend, and authorize the Director of Public Utilities, or his designee, to execute a one-year contract with provisions for two one-year extensions.
EXECUTIVE SUMMARY
The Department of Public Utilities, Water Division, routinely uses ortho poly phosphate blend at the Northeast Surface Water Treatment Facility (NESWTF) as an additive to inhibit the corrosive nature of the ultra-soft water produced at the facility. The execution of a requirements contract with one supplier establishes a firm price, secured through competitive bidding, for a specified time, and allows the City to make purchases as needed.
Funding for this requirements contract is included in the FY 2016 budget. Staff recommends award of a requirements contract to Brenntag Pacific, Inc. for ortho poly phosphate blend in the amount of $178,246.
BACKGROUND
Ortho poly phosphate blend is used by the NESWTF as an additive to inhibit the corrosive nature of the ultra-soft water produced at the facility. This additive reduces the costs associated with corrosion-related repair of water mains and service lines for both the City and its customers in the NESWTF’s service area.
A Notice Inviting Bids was published on September 11, 2015, per the City of Fresno Charter Section 1208. Ten Building Exchanges were faxed Notice Inviting Bids, and ten specifications were distributed prospective bidders. The bid opening was held on September 22, 2015, and four bids were received ranging from $178,246 to $196,753. Brenntag Pacific submitted the lowest bid price in the amount of $178,246, and is a qualified local business. The Notice of Staff Determination of Contract Award was posted on the City’s website on Thursday, November 5, 2015.
ENVIRONMENTAL FINDINGS
Awarding this requirements contract is not a “project” as defined by California Environmental Quality Act Guidelines, Section 15378.
LOCAL PREFERENCE
Brenntag Pacific, Inc. was the lowest responsive and responsible bidder and was the only qualified local business.
FISCAL IMPACT
The expenditure, which is citywide, will not have any impact to the General Fund. Appropriations for ortho poly phosphate blend are included in the Water Division’s FY2016 Operating Program budget within the Water Enterprise Fund. Funding for this expenditure was included in the water rate model used to create the five-year utility rate plan and subsequently adopted by City Council on February 6, 2015.
Attachment:
Bid Evaluation