REPORT TO THE CITY COUNCIL February 8, 2018 FROM: THOMAS C. ESQUEDA, Director Department of Public Utilities THROUGH: BUD TICKEL, Water System Manager Department of Public Utilities - Water Division BY: RUSSELL B. GUILLIAMS, Water System Supervisor-SWTF Department of Public Utilities - Water Division SUBJECT ..Title Award a requirements contract in the amount of $307,998.68 to Univar USA Inc., for bulk sodium hydroxide and authorize the Director of Public Utilities or his designee, to execute a one-year contract with provisions for two one-year extensions. Bid File 9429 (Citywide) ..Body RECOMMENDATION Staff recommends that City Council award a requirements contract in the amount of $307,998.68 to Univar USA Inc., for bulk sodium hydroxide, and authorize the Director of Public Utilities or his designee to execute a one-year contract with provisions for two one-year extensions. EXECUTIVE SUMMARY The Department of Public Utilities - Water Division (Division) routinely uses sodium hydroxide as an additive in finished drinking water at the Northeast Surface Water Treatment Facility (NESWTF) and at T3 Surface Water Treatment Facility (T3). Funding for this contract is included in the FY2018 budget. Staff recommends award of a requirements contract to Univar USA Inc., for these services in the amount of $307,998.68. By executing a requirements contract with one supplier, it establishes a firm price for a specified time allowing the City to make purchases as needed. This contract is secured through the competitive bidding process. BACKGROUND The Division injects sodium hydroxide as part of the treatment of raw surface water at the NESWTF and T3 and will also be added as part of the treatment process when the Southeast Surface Water Facility (SESWTF) becomes operational in FY 2019. It is considered to be an effective enhancement chemical for City of Fresno's water supply by conditioning raw water and enhancing the chemical reaction with the primary coagulant, to facilitate effective cleansing of the water. It also adjusts the pH of the treated water entering the water distribution system and ultimately the end-users' facilities (homes and businesses, etc.), thereby controlling the corrosive quality of the treated water on water mains, pipes and other appurtenances. A Notice Inviting Bids was published on October 20, 2017. Ten Building Exchanges were faxed Notice Inviting Bids, and seven specifications were distributed to prospective bidders. The bid opening was November 7, 2017, and expired February 5, 2018. Two bid proposals with prices ranging from $307,998.68 to $342,499.62 were received. The second bidder, Olin Corporation, was declared non-responsive due to not providing proof of authorized signature. A requirements contract with one supplier establishes a firm price for a specified time allowing the City to make purchases as needed. This contract is secured through the competitive bidding process. City Attorney has reviewed and has approved to form. ENVIRONMENTAL FINDINGS The award of this requirements contract does not qualify as a "project" according to the definition provided in the California Environmental Quality Act Guideline Section 15378, and is therefore exempt from requirements of the California Environmental Quality Act. LOCAL PREFERENCE None of the bidders qualify as a local business according to the Fresno Municipal Code Section 4-108; therefore, Local Preference did not affect the award of this contract. FISCAL IMPACT There is no impact to the General Fund. Appropriations for the purchase of sodium hydroxide are included within the FY2018 Water Enterprise Fund operating budget. Attachments Bid Evaluation (Attachment 1) Sample Contract (Attachment 2)