REPORT TO THE CITY COUNCIL FROM: BROCK D. BUCHE, PE, PLS, Director Department of Public Utilities BY: ANTHONY WHITE, MBA, Assistant Director Department of Public Utilities - Water Division RUSSELL B. GUILLIAMS, Water Manager - Certified Department of Public Utilities - Water Division SUBJECT ..Title Award a Requirements Contract to Univar Solutions USA LLC, for the purchase of bulk calcium hydroxide, for three years with an option for two one-year extensions, in the amount of $4,374,165.77. (Bid File 12402973) (Citywide) ..Body RECOMMENDATION Staff recommends that City Council award a three-year requirements contract with provisions for two one-year extensions to Univar Solutions USA LLC, a Washington Limited Liability Company, in the amount of $4,374,165.77 to provide bulk calcium hydroxide; 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, relies on bulk calcium hydroxide for critical water treatment processes and is essential for maintaining compliance with state and federal drinking water quality standards. Calcium hydroxide is routinely used at the Northeast Surface Water Treatment Facility (NESWTF) and the Southeast Surface Water Treatment Facility (SESWTF) as part of the water treatment process. Its application enhances treatment chemistry and prevents corrosive damage to the City's water distribution system and consumer plumbing infrastructure, ultimately ensuring safe, high-quality drinking water for the residents of the City. To maintain continuous and uninterrupted supply, staff recommends awarding a three-year requirements contract, with provisions for two one-year extensions, to Univar Solutions USA LLC. The total contract amount will not exceed $4,374,165.77, with an annual expenditure of $1,458,055.25. BACKGROUND Calcium hydroxide is a critical component of the City's water treatment process, serving multiple essential functions, including pH stabilization, calcium and alkalinity adjustment, and corrosion prevention. These functions are necessary to ensure compliance with stringent state and federal drinking water standards. Its application at the NESWTF and the SESWTF helps protect the City's water distribution system and end-user plumbing infrastructure, ultimately delivering high-quality, non-corrosive drinking water to residents and businesses. To secure a long-term, cost-effective supply, the City issued a Notice Inviting Bids on October 28, 2024, distributing eight specifications to potential bidders. A public bid opening was held on November 19, 2024, resulting in one responsive bid from Univar Solutions USA LLC. Although only one responsive bid was received, staff conducted a comprehensive review of pricing and market conditions, confirming that the bid is competitive and responsible. The 13 percent price increase from the previous contract aligns with industry trends and remains within budget allocations. Additionally, Univar Solutions USA LLC, has a proven track record of reliability and the capacity to meet the City's supply needs. Staff recommends awarding a three-year contract, with the option for two one-year extensions, to Univar Solutions USA LLC, for a total amount of $4,374,165.77. The City Attorney has reviewed and approved the requirements contract as to form. ENVIRONMENTAL FINDINGS This project is not subject to the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15378(b)(2), as it constitutes ongoing administrative activities and procurement of supplies. LOCAL PREFERENCE Local preference is not applicable as no local bidders participated. FISCAL IMPACT There is no impact on the General Fund. Funding for the purchase of bulk calcium hydroxide is included in the FY2025 Water Enterprise Fund operating budget. Attachments: Bid Evaluation and Fiscal Impact Statement Sample Product Requirements Contract