REPORT TO THE CITY COUNCIL FROM: BROCK D. BUCHE, PE, PLS, Director Department of Public Utilities BY: MARTIN WENDELS, Project Manager Department of Public Utilities - Water Division SUBJECT ..Title Award a Product Requirements Contract in the annual amount of $1,184,975.19, for three-years with provisions for two one-year extensions, for bulk sodium hydroxide to Univar USA, Inc, (Bid File 12301172) (Citywide) ..Body RECOMMENDATION Staff recommends that City Council award a Product Requirements Contract in the annual amount of $1,184,975.19, for three-years with provisions for two one-year extensions, to Univar USA, Inc. (Univar) for bulk sodium hydroxide; and authorize the Director of Public Utilities, or designee, to sign and execute all documents on behalf of the City of Fresno (City). EXECUTIVE SUMMARY The Department of Public Utilities, Water Division (Water) routinely uses sodium hydroxide as an additive in finished drinking water at the Northeast Surface Water Treatment Facility (NESWTF), Southeast Surface Water Treatment Facility (SESWTF), and Tank 3 Surface Water Treatment and Water Storage Facility (T-3). The Council's approval of the three-year contract with Univar will ensure the uninterrupted delivery of the chemical to the surface water treatment facilities and allow the continued production of safe drinking water. BACKGROUND Bulk sodium hydroxide is used in the post-treatment process at the NESWTF, SESWTF, and T-3 treatment facilities for corrosion control in the potable water distribution system. It is considered to be an effective enhancement chemical for the 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 user's facilities (homes, businesses, etc.), thereby controlling the corrosive quality of the treated water within water mains, pipes, and other appurtenances. A Notice Inviting Bids was published on January 6, 2023. The bid opening was February 7, 2023, and there were two bidding vendors. Both bidders were determined to be responsive and responsible with Univar being the lowest bidder. Staff recommends that Council award a three-year contract with the option for two one-year extensions, to Univar in the annual amount of $1,184,975.19 and a total contract value of $5,924,875.95. The City Attorney has reviewed and approved to form. ENVIRONMENTAL FINDINGS By 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 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 Bulk Sodium Hydroxide are included within the FY2023 and FY2024 Water Enterprise Fund budget. Attachments: Attachment 1 - Bid Evaluation Attachment 2 - Sample Contract