REPORT TO THE CITY COUNCIL FROM: BROCK D. BUCHE, PE, PLS, Director Department of Public Utilities BY: RUSSELL B. GUILLIAMS, Water Manager - Certified Department of Public Utilities- Water Division MARTIN WENDELS, Project Manager Department of Public Utilities - Water Division SUBJECT ..Title Award a Product Requirements Contract for Bulk Sodium Hypochlorite with Thatcher Company of California, Inc., for three years with an option for two one-year extensions; with a total not to exceed contract amount of $5,371,126.20, plus annual Consumer Price Index increases (Bid File 12401016-1) (Citywide). ..Body RECOMMENDATION Staff recommends that City Council award a Product Requirements Contract for the purchase of Bulk Sodium Hypochlorite (NaOCl), to Thatcher Company of California, Inc. (Thatcher), a Salt Lake City Corporation, for three years with provisions for two optional one-year extensions, in the amount of $1,074,225.24 per year plus annual Consumer Price Index (CPI) increases; and authorize the Director of Public Utilities, or designee, to sign agreement on behalf of the City of Fresno (City). EXECUTIVE SUMMARY The Department of Public Utilities (DPU), Water Division (Water), seeks to award a Product Requirements Contract to Thatcher with an annual total of $1,074,225.24 for three years with an option for two one-year extensions for a total not to exceed contract of $5,371,126.20 for NaOCl. Water Division currently uses NaOCl at the Northeast Surface Water Treatment Facility (NESWTF), the Southeast Surface Water Treatment Facility (SESWTF), T3, and at various water well locations throughout the City to disinfect treated drinking water before it enters the water distribution system. Award of this contract will allow for the continued protection of the water distribution system. BACKGROUND The City is required by federal and state drinking water regulations to always maintain a chlorine residual greater than 0.2 mg/L in the farthest points of the distribution system. NaCOl is dosed at the discharge of the NESWTF, SESWTF, T3 and at various water well sites throughout the City. A Notice Inviting Bids was published on May 03, 2024, per the City of Fresno Charter Section 1208. Two Building Exchanges were faxed Notice Inviting Bids, and fourteen specifications were distributed to proposed bidders. The bid opening was June 04, 2024, and three bids were received with one of the bidders being non-responsive. The lowest responsive and responsible bidder was the Thatcher Company of California, Inc. in the amount of $5,371,126.20 for the five-year requirements contract. City Attorney has reviewed the staff report and approved to form. ENVIRONMENTAL FINDINGS This is not a project for the purposes of the California Environmental Quality Act (CEQA). Pursuant to State CEQA Guidelines section 15378(b)(2), "project" does not include "continuing administrative or maintenance activities, such as purchases for supplies." LOCAL PREFERENCE Local preference is not applicable as there are no local bidders. FISCAL IMPACT The General Fund is not impacted by this citywide expenditure, as the appropriations for the purchase of bulk sodium hypochlorite are included in FY2025 Water Enterprise Fund operating budget. Attachments: 12401016-1 Bid Evaluation and Fiscal Impact Statement Sample Product Requirements Contract