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Item 1.7 - Award of Contract for the Annual Supply of Chemicals for the Lester J. Berglund Water Treatment Plant; Bid 19-017G`� { OF POLY 9 f TyF ° rY ,\p�.riie9tl°0����Y DATE: TO: FROM: CONTACT: SUBJECT: Summary: City of Poway COUNCIL AGENDA REPORT June 4, 2019 APPROVED ❑ APPROVED AS AMENDED ❑ (SEE MINUTES) DENIED ❑ REMOVED ❑ CONTINUED RESOLUTION NO. Honorable Mayor and Members of the City Council Michael Obermiller, P.E., Director of Public Works Rudy Guzman, Assistant Director of Public Works for Utilitiesf.8__�' (858) 668-4750 or rguzman@poway.org Award of Contracts for the Annual Supply of Chemicals for the Lester J. Berglund Water Treatment Plant, Bid No. 19-017 A notice inviting bids for the Annual Supply of Chemicals for the Lester J. Berglund Water Treatment Plant for Fiscal Years 2019-20 and 2020-21 was duly advertised on April 11, and 18, 2019. Bid specifications allowed the City to award one or more of each chemical bid to the same vendor or separate vendors and to reject any or all bids or all items. The term of each contract is for two years beginning July 1, 2019, and ending June 30, 2021. Bids were opened May 10, 2019, with eight (8) vendors submitting bids. Four (4) vendors were determined to be the lowest responsive bidders for six specified chemicals specified in the bid: Hill Brothers Chemical Company, a California corporation; JCI Jones Chemicals Inc., a New York Corporation; Pacific Star Chemical, dba Northstar Chemical Inc., an Oregon Corporation; and CalChem Enterprises Inc., a California corporation. No bids were received for the Liquid Permanganate chemical as a result of the low quantity amount requested. Staff will solicit quotes for the Liquid Permanganate chemical next fiscal year. Recommended Action: It is recommended that the City Council award the bids for the Annual Supply of Chemicals for the Lester J. Berglund Water Treatment Plant, Bid No. 19-017 to the following four (4) lowest responsive bidders: Hill Brothers Chemical Company (aqua ammonia), $12,070.00; JCI Jones Chemicals Inc., (liquid chlorine and sodium hydroxide), $56,640.00 and $154,500.00, respectively; Pacific Star Chemical, dba Northstar Chemical, (cationic organic coagulant aid and liquid alum), $25,951.50 and $60,480.00, respectively; and CalChem Enterprises Inc., (aluminum chlorohydrate), $70,144.00 and authorize the City Manager to execute the necessary documents. Discussion: The City of Poway operates and maintains a water utility system. Raw water is purchased from the San Diego County Water Authority and treated at the City -owned and operated Lester J. Berglund Water Treatment Plant, then distributed to all Poway customers. Within the treatment facility, all water is treated and disinfected utilizing chemicals in accordance with standards set by state and federal regulations and the American Water Works Association. Staff receives delivery of approximately 880 tons of chemicals annually. 1 of 2 June 4, 2019, Item #1.7 In accordance with the City's purchasing policy, staff solicited bids for the provision of chemicals, which includes delivery of the chemicals. Eight (8) sealed bids were opened on May 10, 2019. The lowest responsive bidders for each type of chemical specified are summarized in the table below. BIDDER Hill Brothers Chemical Company CHEMICAL BID Aqua Ammonia UNIT BID $0.71/gal x 17,000 BID TOTAL $12,070.00 JCI Jones Chemicals Inc. Liquid Chlorine $590.00/ton x 96 $56,640.00 JCI Jones Chemicals Inc. Sodium Hydroxide $750.00/ton x 206 $154,500.00 Pacific Star Chemical Cationic Organic Coagulant Aid $1,422.00/ton x 18.25 $25,951.50 Pacific Star Chemical Liquid Alum $336.00/ton x 180 $60,480.00 N/A Liquid Permanganate N/A N/A CalChem Enterprises Inc. Aluminum Chlorohydrate $512.00/ton x 137 $70,144.00 The City has an annual budget of approximately $474,000.00 for water treatment chemicals. Staff recommends authorizing the purchase of various chemicals listed above from the respective bidders under a two (2) year sale and purchase of goods and materials contract, with no options for renewals. The chemicals will be delivered by the awarded vendors to the City treatment plant as needed throughout the term of this bid award. Environmental Review: This item is not subject to California Environmental Quality Act review. Fiscal Impact: Sufficient funds to award the responsive bids, as identified in this report, are included with the Fiscal Year 2019-20 Budget (402060-45200) for consideration by Council on June 18, 2019. Contracts will be awarded upon adoption of the proposed budget. Public Notification: A copy of this report was sent to Hill Brothers Chemical Company, JCI Jones Chemicals Inc., Pacific Star Chemical, dba Northstar Chemical and CalChem Enterprises Inc. Attachments: None. Reviewed/Approved By: fi" L-, Wend6VKaserman Assistant City Manager Reviewed By: Alan Fenstermacher City Attorney Approved By: City Manager 2 of 2 June 4, 2019, Item #1.7