REPORT TO THE CITY COUNCIL
January 28, 2021
FROM: MICHAEL CARBAJAL, Director
Department of Public Utilities
THROUGH: RICK STAGGS, Wastewater Manager
Department of Public Utilities - Wastewater Management Division
BY: RAY ARTHUR. Project Manager - Air Resources
Department of Public Utilities - Wastewater Management Division
SUBJECT
Title
Award a requirements contract in the estimated amount of $1,218,821.80 to Kemira Water Solutions, Inc. a Delaware Corporation, for Ferric Chloride (Bulk Delivery) to the Fresno-Clovis Regional Wastewater Reclamation Facility (RWRF) Bid File 9562 (Council District 3)
Body
RECOMMENDATION
Staff recommends the City Council award a three year contract, with provisions for (two) one-year extensions, in the annual estimated amount of $1,218,821.80.
EXECUTIVE SUMMARY
The Department of Public Utilities Wastewater Management Division is seeking a requirements contract for Ferric Chloride for use at the RWRF Headworks for odor control and for hydrogen sulfide reduction in the digester gas produced during the treatment process. The hydrogen sulfide level in the digester gas and the odor control activities at the Headworks are both regulated under Environmental Protection Agency rules administered by the San Joaquin Valley Air Pollution Control District.
BACKGROUND
The RWRF currently treats approximately 60 million gallons of wastewater per day from Fresno, Clovis, and some unincorporated areas of Fresno County. The wastewater flows for six-to-ten hours in the trunk lines before reaching the plant, arriving in a septic condition in which hydrogen sulfide, a toxic malodorous gas, is present in the wastewater and is emitted into the air treatment system at the Headworks. At both the Headworks facility and the primary treatment units, there is a potential for emission of hydrogen sulfide gas from the as-yet-untreated wastewater into the atmosphere. Ferric Chloride is added at the Headworks as part of the odor control strategy to minimize the emission of malodorous gases, and is required as part of the RWRF air permits requirements.
A notice inviting bids was published September 30, 2020 and posted on PlanetBids. The specifications were distributed to 13 prospective bidders. Two sealed bid proposals were received and publicly opened on October 20, 2020. Since this is a requirements contract, a unit price was specified per dry ton and an estimated annual cost was included, based on an estimated annual usage. The two bids, based on total estimated annual cost, were $1,218,821.80 and $1,328,956.30. Bids will expire on January 18, 2021.
Kemira Water Solutions, Inc. submitted the lowest bid proposal in the amount of $1,218,821.80 and is considered the lowest responsive and responsible bidder. Staff recommends that the City Council award a requirements contract in the estimated annual amount of $1,218,821.80 to Kemira Water Solutions, Inc. The unit price in the current contract is $701.84 per Dry Ton, for 1,300 tons. The unit price in the bid proposal is $716.95 for 1,700 Dry Tons.
City Attorney has reviewed and approved as to form.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act (CEQA) Guidelines, Section 15378, this agreement does not meet the definition of Project as provided by CEQA.
LOCAL PREFERENCE
Local preference was not implemented as the only two bidders are located out of state
FISCAL IMPACT
Funding for this project has been included in the Wastewater Management Division Enterprise Fund and has no impact on the General Fund. The budgeted amount for FY21 is $980,800. Purchases under this contract will cover approximately 50% of FY21, January through June. This contract will be effective for three years with provisions for two one-year extensions. Funding for future purchases will be included in future years’ budgets.
Attachment: Evaluation of Bid Proposals