9.E.
City Council Meeting - FINAL
- Meeting Date:
- 05/19/2015
- From:
- Thomas Bolyen, Water Production Manager
Information
TITLE:
Consideration and Approval of Contracts: Purchase water and wastewater treatment chemicals through a City of Flagstaff Invitation for Bids, Bid number 2015-27 (Approve contracts with five (5) vendors for water and wastewater treatment chemicals).
RECOMMENDED ACTION:
-
Approve and award three (3) year initial term contracts, with options to extend for two (2) one year renewals, with five (5) national companies for the purchase of bulk water and wastewater treatment chemicals that will ensure guaranteed prices under our procurement process. The vendors' not to exceed annual costs are as follows:
1) Chemtrade Chemicals US, LLC. of Parsippany, New Jersey agrees to provide liquid aluminum sulfate for a not to exceed annual cost of $177,100.
2) DPC Enterprises, L.P. of Glendale, Arizona agrees to provide gaseous chlorine for a not to exceed annual cost of $79,410.
3) Hills Brothers Chemical Company of Phoenix, Arizona agrees to provide liquid chlorine for a not to exceed annual cost of $45,220.
4) Thatcher Company of Arizona, Inc. of Salt Lake City, Utah agrees to provide sulfur dioxide and liquid polymer for a not to exceed annual cost of $81,117.
5) Univar USA Inc. of Phoenix, Arizona agrees to provide liquid caustic soda for a not to exceed annual cost of $139,750.
Executive Summary:
Chemicals represent a large investment in the effective operation of the Utilities Division’s treatment plants. These chemicals are critical to the treatment of water and wastewater in order to comply with water quality regulations and ensure the public’s safety. These chemicals are unavailable in the City of Flagstaff and must be delivered; many are located outside of Arizona. Bulk chemicals are purchased by each treatment plant on an as-needed basis based on the demand for water, reclaimed water, and the treatment of wastewater. These chemicals disinfect and remove impurities from all water sources including potable drinking water, reclaimed water, and wastewater.
Financial Impact:
These competitively bid contracts will reduce the financial impacts to the Utilities Division consolidating the purchasing needs of these chemicals for the Water Production and Wastewater Treatment Sections of the Utilities Division. These contracts collectively are for an amount not to exceed $522,598 annually. Funds to purchase chemicals are budgeted within Utilities Division treatment plant budgets for Lake Mary, Rio de Flag, and Wildcat Hill.
Connection to Council Goal and/or Regional Plan:
2) Ensure Flagstaff has a long-term water supply for current and future needs; 3) Provide sustainable and equitable public facilities, services, and infrastructure systems in an efficient and effective manner to serve all population areas and demographics; Additionally meet the following regional plan goals: Chapter VI, WR.2.1, Develop and adopt an integrated water master plan that addresses water resources, water production and its distribution, wastewater collection and its treatment, and reclaimed water treatment and its distribution. Chapter VI, Policy WR.2.2, maintain and develop facilities to provide reliable, safe, and cost-effective water, wastewater and reclaimed water services
Has There Been Previous Council Decision on This:
City Council has approved similar bulk chemical purchase contracts from bids secured in April 2006 and October 2009, but are no longer in force.
Options and Alternatives:
Option 1. Award the contracts to Hill Bothers, Thatcher, DPC Enterprises, Chemtrade Chemicals, and Univar-USA as the lowest responsive, responsible bidders for their respective chemicals. Option 2. Require staff to constantly secure new prices for bulk chemicals for each individual purchase. This may lead to higher purchase and transportation costs and make budgetary decisions more difficult. Option 3. Disallow purchase of bulk chemicals. This option would hinder compliance with State law and Federal water quality regulations.
Background/History:
Chemicals represent a large investment in the effective operation of the Utilities Division’s treatment plants. Utilities use the following chemicals for these specific purposes:
Chlorine is needed for disinfection of surface water, ground water, and wastewater.
Aluminum sulfate and cationic polymer are necessary for removal of suspended impurities in water supplies.
Caustic soda is used to balance the pH of waters for efficient treatment and appropriate discharge.
Sulfur dioxide is used in the removal of disinfection products to discharge safe treated water into the environment.
Chlorine is needed for disinfection of surface water, ground water, and wastewater.
Aluminum sulfate and cationic polymer are necessary for removal of suspended impurities in water supplies.
Caustic soda is used to balance the pH of waters for efficient treatment and appropriate discharge.
Sulfur dioxide is used in the removal of disinfection products to discharge safe treated water into the environment.
Key Considerations:
By establishing contract pricing and defining delivery requirements, the City receives a consistent product at the best possible purchase price.
Expanded Financial Considerations:
The Utilities Division annually budgets for the purchase of these chemicals within the following operational sections: Lake Mary Water Treatment Plant, Rio de Flag Water Reclamation Plant, and Wildcat Hill Wastewater Treatment Plant. The FY15 allocations are as follows:
Lake Mary Water Treatment Plant 202-08-301-1011-0-4362 $208,200
Wildcat Hill Wastewater Treatment Plant 203-08-311-1111-0-4362 $110,000
Wildcat Hill Wastewater Treatment Plant 203-08-311-1116-0-4362 $60,000
Rio De Flag Water Reclamation Plant 203-08-312-1121-0-4362 $5,000
Rio De Flag Water Reclamation Plant 203-08-312-1121-0-4362 $40,000
These contracts represent an increase in spending authority to align our chemical purchases with 100% use of the Upper Lake Mary and future growth over the next five years.
Lake Mary Water Treatment Plant 202-08-301-1011-0-4362 $208,200
Wildcat Hill Wastewater Treatment Plant 203-08-311-1111-0-4362 $110,000
Wildcat Hill Wastewater Treatment Plant 203-08-311-1116-0-4362 $60,000
Rio De Flag Water Reclamation Plant 203-08-312-1121-0-4362 $5,000
Rio De Flag Water Reclamation Plant 203-08-312-1121-0-4362 $40,000
These contracts represent an increase in spending authority to align our chemical purchases with 100% use of the Upper Lake Mary and future growth over the next five years.
Community Benefits and Considerations:
Maintaining water quality standards is a prime benefit to the community.
Community Involvement:
Consult: The Water Commission supports and reviews the Utilities Department operations of the water and wastewater sections.
Expanded Options and Alternatives:
Choose not to purchase from bid pricing and purchase chemicals at market price.