REPORT TO THE CITY COUNCIL
December 3, 2015
FROM: THOMAS C. ESQUEDA, Director
Department of Public Utilities
THROUGH: RICK STAGGS, Operations 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 $1,233,765.00 to Kemira Water Solutions, Inc. a Delaware Corporation, for Ferric Chloride (Bulk Delivery) to the Fresno-Clovis Regional Wastewater Reclamation Facility (RWRF) Bid File 9335.
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 $1,233,765.00.
EXECUTIVE SUMMARY
The Department of Public Utilities Wastewater Management Division seeks Council approval to award 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 RWRF air permits issued by the San Joaquin Valley Air Pollution Control District. Hydrogen sulfide control in the digester gas is also necessary for protection of the gas turbines.
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 untreated wastewater into the atmosphere. Ferric Chloride is added at the Headworks as part of the odor control strategy to minimize the emission of odorous gases, and is required as part of the RWRF air permits requirements.
A Notice Inviting Bids was published August 26, 2015, and posted on the City’s website. The specifications were distributed to 20 prospective bidders. Two sealed bid proposals were received and publicly opened on September 15, 2015. 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 $1,233,765.00 and $1,260,821.25. Bids will expire within 64 days of bid opening.
Kemira Water Solutions, Inc. submitted the lowest bid proposal in the amount of $1,233,765.00 and is considered the lowest responsive and responsible bidder. Staff recommends Council award a requirements contract in the estimated annual amount of $1,233,765.00 to Kemira Waster Solutions, Inc. The unit price in the bid proposal of $456.00 per dry ton is below the current cost of $497.00 per dry ton.
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 two bidders are located out of state.
FISCAL IMPACT
This project has no impact on the General Fund and is located in Council District 3. The FY 16 annualized cost of this contract is $970,258.00. The cost exceeding the annual budgeted dollar amount, will be offset by the previous year’s Purchase Order carryover of $141,533.00 and the estimated $177,000.00 savings derived from reduced polymer usage.
Attachment:
Evaluation of Bid Proposals