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File #: ID 24-597    Version: 1 Name:
Type: Action Item Status: Passed
File created: 4/23/2024 In control: City Council
On agenda: 5/23/2024 Final action: 5/23/2024
Title: Award a requirements contract to Chemtrade Chemicals US, LLC., for the purchase of bulk aluminum sulfate, for three years with an option for two one-year extensions, in the amount of $4,597,832.25. (Bid File 12400533) (Citywide)
Sponsors: Department of Public Utilities
Attachments: 1. 24-597 Signed Bid Eval and Fiscal Impact Statement, 2. 24-597 Sample Contract

REPORT TO THE CITY COUNCIL

 

 

FROM:                     BROCK D. BUCHE, PE, PLS, Director

                     Department of Public Utilities

 

BY:                                          RUSSELL GUILLIAMS, Water Manager - Certified

                                          Department of Public Utilities - Water Division

 

MARTIN WENDELS, Project Manager

                                          Department of Public Utilities - Water Division

 

SUBJECT

Title

Award a requirements contract to Chemtrade Chemicals US, LLC., for the purchase of bulk aluminum sulfate, for three years with an option for two one-year extensions, in the amount of $4,597,832.25. (Bid File 12400533) (Citywide)

 

Body

RECOMMENDATION

 

Staff recommends that City Council award a three-year requirements contract with provisions for two one-year extensions to Chemtrade Chemicals US, LLC., of Parsippany, New Jersey, in the amount of $4,597,832.25 to provide for bulk aluminum sulfate; and authorize the Director of Public Utilities, or designee, to execute the contract on behalf of the City of Fresno (City).

 

EXECUTIVE SUMMARY

 

The Department of Public Utilities, Water Division, routinely uses bulk aluminum sulfate for water treatment at the surface water treatment facilities (SWTF), inclusive of the Northeast SWTF, the Southeast SWTF, and T-3 Water Storage and SWTF. 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. Staff recommends the award of a three-year requirements contract with provisions for two one-year extensions to Chemtrade Chemicals US, LLC., in the amount of $4,597,832.25.

 

BACKGROUND

 

Aluminum sulfate is used as a coagulating agent at the three surface water treatment facilities as the first step in treating raw surface water to meet State and Federal drinking water requirements. When added to water, it causes suspended microscopic impurities to clump together into larger particles. These clumps of impurities then settle to the bottom of the basin and are discharged to waste. This initial process is one of several that ultimately provides potable drinking water.

 

A Notice Inviting Bids was published on December 6, 2023. There were two bidding vendors. Both bidders were determined to be responsive and responsible with Chemtrade Chemicals, US, LLC., being the lowest bidder. Staff recommends that Council award a three-year contract with the option for two one-year extensions, to Chemtrade Chemicals, US, LLC., in the amount of $4,597,832.25. The City Attorney has reviewed and approved the Requirements Contract as to form.

 

ENVIRONMENTAL FINDINGS

 

By the definition provided in the California Environmental Quality Act Guidelines Section 15378, the award of this requirements contract does not qualify as a “project”.

 

LOCAL PREFERENCE

 

Local preference was not applied because none of the bidders were local businesses.

 

FISCAL IMPACT

 

There is no impacted to the General Fund. Funding for the purchase of bulk aluminum sulfate is included in FY2024 Water Enterprise Fund operating budget.

 

 

Attachments:

Signed Bid Evaluation and Fiscal Impact Statement

Sample Contract