REPORT TO THE CITY COUNCIL September 27, 2018 FROM: MICHAEL CARBAJAL, Director Department of Public Utilities THROUGH: BUD TICKEL, Assistant Director Department of Public Utilities, Water Division BY: RUSSELL B. GUILLIAMS, Chief of Water Operations Department of Public Utilities, Water Division SUBJECT ..Title Reject all bids for the Requirements Contract for Bulk Calcium Hydroxide - Bid File 9454 (Citywide) ..Body RECOMMENDATION Staff recommends City Council reject all bids received for the requirements contract for bulk calcium hydroxide. EXECUTIVE SUMMARY The Department of Public Utilities - Water Division, solicited bids to establish a requirements contract for bulk calcium hydroxide. Bulk calcium hydroxide is used in the post-treatment process for corrosion control in the distribution system. The Northeast Surface Water Treatment Plant as well as the Southeast Surface Water Treatment Plant adds calcium hydroxide after the treatment and disinfection of drinking water. There were two bids received. Both bids included exceptions that were either material in terms or would materially alter the terms of the contract and therefore are considered to be non-responsive. Purchasing is prepared to rebid upon City Council's consideration of the staff recommendation to reject all bids received for the calcium hydroxide bulk requirements contract. BACKGROUND The Division injects sodium hydroxide as part of the treatment of raw surface water at the water treatment facilities. 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 April 23, 2018, per the City of Fresno Charter Section 1208. Ten Building Exchanges were faxed Notice Inviting Bids, and 15 specifications were distributed to prospective bidders. The bid opening was on May 22, 2018, and two bids were received ranging from $1,428,995.14 to $1,839,947.98. Purchasing is prepared to immediately rebid upon Council's consideration of the staff recommendation to reject all bids received for the requirements contract for bulk calcium hydroxide. The Notice of Staff Determination of Contract Award was posted on the City's website on September 10, 2018. The City Attorney's Office has reviewed and approved to form. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, the award of this contract is not a project as defined by CEQA. LOCAL PREFERENCE Local preference was not applied because neither of the bidders were local businesses pursuant to Fresno Municipal Code Section 4-108. FISCAL IMPACT As the recommendation is for rejection of all bids, there is no fiscal impact. Attachment: Bid Evaluation and Fiscal Impact Statement