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