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File #: ID18-1493    Version: 1 Name:
Type: Action Item Status: Passed
File created: 11/26/2018 In control: City Council
On agenda: 12/13/2018 Final action: 12/13/2018
Title: Award a Requirements Contract to Brenntag Pacific, Inc., of Santa Fe Springs, California, in the amount of $312,930 for Ortho Poly Phosphate, for a term of one-year with the possibility of two one-year extensions. Bid File 9479 (Citywide)
Sponsors: Department of Public Utilities
Attachments: 1. 2018-12-13 Attachment 1 - Bid Evaluation and Fiscal Impact Statement.pdf, 2. 2018-12-13 Attachment 2 - Sample Contract.pdf

REPORT TO THE CITY COUNCIL

 

 

December 13, 2018

 

 

FROM:                     MICHAEL CARBAJAL, Director

                                          Department of Public Utilities

 

THROUGH:                     BUD TICKEL, Assistant Director

                     Department of Public Utilities, Water Division

 

BY:                                          RUSSELL B. GUILLIAMS, Chief of Water Operations

                                          Department of Public Utilities, Water Division

 

SUBJECT

Title

Award a Requirements Contract to Brenntag Pacific, Inc., of Santa Fe Springs, California, in the amount of $312,930 for Ortho Poly Phosphate, for a term of one-year with the possibility of two one-year extensions. Bid File 9479 (Citywide)

 

Body

RECOMMENDATION

 

Staff recommends that Council award a one-year requirements contract with provisions for two one-year extensions to Brenntag Pacific, Inc., of Santa Fe Springs, California, in the amount of $312,930 for Ortho Poly Phosphate, an additive that provides corrosion control in the water distribution systems, and authorize the City Manager, or designee, to sign the agreement on behalf of the City.

 

EXECUTIVE SUMMARY

 

The Department of Public Utilities, Water Division, seeks approval to establish a requirements contract for Ortho Poly Phosphate, which is routinely used for prevention of pipe corrosion in water distribution systems. The Water Division currently uses Ortho Poly Phosphate at the Surface Water Treatment Facilities (SWTF’s), including the Northeast Water Treatment Facility, the Southeast Water Treatment Facility, and T3. 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 award of a one-year requirements contract with provisions for two one-year extensions to Brenntag Pacific, Inc., of Santa Fe Springs, California, in the amount of $312,930.  Funding for this contract is included in the FY19 budget.

 

BACKGROUND

 

Ortho Poly Phosphate is used by the Surface Water Treatment Facilities as an additive to inhibit the corrosive nature of the ultra-soft water produced at the facilities. This addition reduces costs associated with corrosion-related repair of water mains and service lines for both the City and its customers in the SWTF’s service areas.

 

Specifications for a contract for Ortho Poly Phosphate were prepared based upon estimated annual usage. A Notice Inviting Bids was published on October 5, 2018, per the City of Fresno Charter Section 1208. Ten Building Exchanges were faxed Notice Inviting Bids, and ten specifications were distributed to proposed bidders. The bid opening was October 23, 2018, and three bids were received ranging from $353,970 to $312,930. Brenntag Pacific, Inc., of Santa Fe Springs, California, submitted the lowest bid price in the amount of $312,930 and is considered the lowest responsive and responsible bidder. City Attorney has reviewed and approved the agreement 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 pursuant to Fresno Municipal Code Section 4-108.

 

FISCAL IMPACT

 

The General Fund is not impacted by this citywide expenditure, as the appropriations for the purchase of Ortho Poly Phosphate are included in FY2019 Water Enterprise Fund operating budget.

 

 

Attachments: 

Bid Evaluation and Fiscal Impact Statement (Attachment 1)

Sample Contract (Attachment 2)