REPORT TO THE CITY COUNCIL FROM: BROCK D. BUCHE, PE, PLS, Interim Director Department of Public Utilities BY: BUD TICKEL, Assistant Director - Water Department of Public Utilities - Water Division MARTIN WENDELS, Project Manager Department of Public Utilities - Water Division SUBJECT ..Title Approve an extension to the Requirements Contract with Chemtrade Chemicals, US, LLC, of Parsippany, New Jersey, for bulk aluminum sulfate, for two additional one-year terms for an annual amount of $401,500 (Bid File 9478) (Citywide) ..Body RECOMMENDATION Staff recommends that Council approve an additional two one-year extensions with an annual amount of $401,500 for the Requirements Contract for bulk aluminum sulfate with Chemtrade Chemicals, US, LLC (Chemtrade). EXECUTIVE SUMMARY The Department of Public Utilities - Water Division, routinely uses bulk aluminum sulfate, the primary coagulant chemical, for water treatment at the Northeast Water Treatment Facility, the Southeast Water Treatment Facility, and the Tank 3 Surface Water Treatment and Water Storage Facility. Council approval of two one-year contract extensions with an annual amount of $401,500 to the Requirements Contract for bulk aluminum sulfate with Chemtrade will ensure uninterrupted delivery of the chemical to the surface water treatment facilities and allow the continued production of safe drinking water. BACKGROUND Aluminum sulfate is used as a coagulating agent at the three surface water treatment facilities as the first step in the purification of raw water in order to meet the State of California's drinking water requirements. When added to water, aluminum sulfate causes suspended microscopic impurities to clump together into larger particles. These clumps of impurities filter out more easily, settling to the bottom of the basin and subsequently removed and disposed of. A Notice Inviting Bids was published on October 5, 2018, per the City of Fresno Charter Section 1208. The bid opening was October 23, 2018, and two bids were received ranging from $1,204,500 to $1,277,500 for a cumulative period of three-years. Chemtrade was the lowest and only responsive bidder. On January 17, 2019, Council awarded the Requirements Contract for bulk aluminum sulfate in the amount of $1,204,500 for a term of one year with the possibility of two one-year extensions to Chemtrade. Upon review of Bid File 9478, the original specifications allow the contract duration to be extended by an additional two one-year terms that were not captured in the initial award. Staff recommends that Council approve two additional one-year extensions at an annual contract amount to $401,500. This will allow for continued delivery of aluminum sulfate and uninterrupted production of safe drinking water. ENVIRONMENTAL FINDINGS By definition provided in the California Environmental Quality Act Guidelines Section 15378, the award is this requirements contract does not qualify as a "project". LOCAL PREFERENCE Local preference was not applicable because this item is an extension of an existing contract. FISCAL IMPACT The General Fund is not impacted by this citywide expenditure, as the appropriations for the purchase of the Bulk Aluminum Sulfate is included in the FY 2022 and FY 2023 Water Enterprise Fund budget. Attachments: Attachment 1 - Signed Contract Attachment 2 - Notice of Award