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 requirements contract to Carus, LLC., for the purchase of ortho polyphosphate, for three years with an option for two one-year extensions, in the amount of $920,887.49 per year plus annual Consumer Price Index increases (Bid File 12401056) (Citywide). ..Body RECOMMENDATION Staff recommends that City Council award a requirements contract to Carus, LLC. (Carus), an Illinois Corporation, for the purchase of ortho polyphosphate (OPP), for three years with provisions for two one-year extensions, in the amount of $920,887.49 per year plus annual Consumer Price Index (CPI) increases; and authorize the Director of Public Utilities, or designee, to sign the agreement on behalf of the City of Fresno (City). EXECUTIVE SUMMARY The Department of Public Utilities - Water Division (Water), seeks to award a requirements contract to supply OPP, to Carus for an annual total of $920,887.49 and a five-year contract total of $4,604,437.43. Water currently uses OPP at the Northeast Surface Water Treatment Facility (NESWTF), the Southeast Surface Water Treatment Facility (SESWTF), and at various water well locations throughout the City to aid in the prevention of pipe corrosion in the water distribution system. Award of this contract will allow for the continued protection of the water distribution system. BACKGROUND OPP is used as an additive to water produced at the Surface Water Treatment Facilities and various water well sites to inhibit corrosion in the water distribution system. This addition reduces costs associated with corrosion-related repair of water mains and service lines for both the City and its customers within our service area. A Notice Inviting Bids was published on March 13, 2024, per the City of Fresno Charter Section 1208. Three Building Exchanges were given Notice Inviting Bids, and fourteen specifications were distributed to proposed bidders. The bid opening was April 9, 2024, and five bids were received ranging from $2,762,662.46 to $8,236,086.50 for three-year totals. Carus submitted the lowest bid and was considered the lowest responsive and responsible bidder. The City Attorney has reviewed and approved the Product Requirements Contract 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 because the local business's bid was not equal to or less than the original lowest responsive and responsible bid, exceeding the sum of $75,000.00 after the preference was applied. FISCAL IMPACT This action will not have any impact on the General Fund, as the appropriations for the purchase of ortho polyphosphate will be funded through the Water Enterprise Fund. Attachments: BF 12401056 Bid Evaluation and Fiscal Impact Statement Sample Product Requirements Contract