REPORT TO THE CITY COUNCIL December 13, 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 Award a Requirements Contract to Brenntag Pacific, Inc., of Santa Fe Springs, California, in the amount of $312,930 for Ortho Poly Phosphate, for a term of one-year with the possibility of two one-year extensions. Bid File 9479 (Citywide) ..Body RECOMMENDATION Staff recommends that Council award a one-year requirements contract with provisions for two one-year extensions to Brenntag Pacific, Inc., of Santa Fe Springs, California, in the amount of $312,930 for Ortho Poly Phosphate, an additive that provides corrosion control in the water distribution systems, and authorize the City Manager, or designee, to sign the agreement on behalf of the City. EXECUTIVE SUMMARY The Department of Public Utilities, Water Division, seeks approval to establish a requirements contract for Ortho Poly Phosphate, which is routinely used for prevention of pipe corrosion in water distribution systems. The Water Division currently uses Ortho Poly Phosphate at the Surface Water Treatment Facilities (SWTF's), including the Northeast Water Treatment Facility, the Southeast Water Treatment Facility, and T3. The execution of a requirements contract with one supplier establishes a firm price, secured through competitive bidding, for a specified time and allows the City to make purchases as needed. Staff recommends award of a one-year requirements contract with provisions for two one-year extensions to Brenntag Pacific, Inc., of Santa Fe Springs, California, in the amount of $312,930. Funding for this contract is included in the FY19 budget. BACKGROUND Ortho Poly Phosphate is used by the Surface Water Treatment Facilities as an additive to inhibit the corrosive nature of the ultra-soft water produced at the facilities. This addition reduces costs associated with corrosion-related repair of water mains and service lines for both the City and its customers in the SWTF's service areas. Specifications for a contract for Ortho Poly Phosphate were prepared based upon estimated annual usage. A Notice Inviting Bids was published on October 5, 2018, per the City of Fresno Charter Section 1208. Ten Building Exchanges were faxed Notice Inviting Bids, and ten specifications were distributed to proposed bidders. The bid opening was October 23, 2018, and three bids were received ranging from $353,970 to $312,930. Brenntag Pacific, Inc., of Santa Fe Springs, California, submitted the lowest bid price in the amount of $312,930 and is considered the lowest responsive and responsible bidder. City Attorney has reviewed and approved the agreement as to form. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act Guidelines Section 15378, the award of this requirements contract does not qualify as a "project". LOCAL PREFERENCE Local preference was not applied because none of the bidders were local businesses pursuant to Fresno Municipal Code Section 4-108. FISCAL IMPACT The General Fund is not impacted by this citywide expenditure, as the appropriations for the purchase of Ortho Poly Phosphate are included in FY2019 Water Enterprise Fund operating budget. Attachments: Bid Evaluation and Fiscal Impact Statement (Attachment 1) Sample Contract (Attachment 2)