Item 1.7 - Award of Contract; Chemtrade for the Annual Supply of Chemicals; Bid 19-017City of Poway
COUNCIL AGENDA REPORT
DATE: July 16, 2019
TO: Honorable Mayor and Members of the City Council
FROM:
CONTACT:
SUBJECT:
Summary:
Michael Obermiller, P.E., Director of Public Works -'-
Rudy Guzman, Assistant Director of Public Works for Utilities
(858) 668-4750 or rguzman@poway.org
APPROVED ❑
APPROVED AS AMENDED ❑
(SEE MINUTES)
DENIED ❑
REMOVED ❑
CONTINUED
RESOLUTION NO.
Award of Contract to Chemtrade Chemical US LLC 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. 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 chemicals specified in the
bid and were awarded contracts by the Council on June 4, 2019. Pacific Star Chemical, dba
Northstar Chemical (Northstar Chemical) was awarded the bid for the supply of liquid alum in the
amount of $60,480. Northstar Chemical recently informed the City it would not be able to perform
under the contract. Award to Chemtrade Chemical US LLC, the second lowest bidder, is therefore
recommended.
Recommended Action:
It is recommended that the City Council award the contract for the Annual Supply of Chemicals
for the Lester J. Berglund Water Treatment Plant, Bid No. 19-017, to Chemtrade Chemical US
LLC (Chemtrade), for the supply and delivery of liquid alum (aluminum sulfate) 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. Part of the water
treatment process is using chemicals to disinfect and remove particles in the water to meet or
exceed State and Federal drinking water standards. In accordance with the City's purchasing
policy, staff solicited bids for the provision of chemicals, which includes delivery of the chemicals.
On June 4, 2019, the Council awarded bids to four (4) vendors for the supply of six chemicals
(aqua ammonia, liquid chlorine, cationic organic coagulant aid, liquid alum and aluminum
chlorohydrate).
During the contract execution process, Northstar Chemical notified the City staff that it could not
deliver bulk liquid alum to the Water Treatment Plant due to the incompatible plumbing
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July 16, 2019, Item #1.7
configuration of the liquid alum storage vessels and Northstar Chemical's offloading methods.
The Poway Municipal Code Section 3.28.070, Formal Bidding Procedure, authorizes the Council
to award a bid to the next lowest responsible bidder when the successful bidder refuses or fails
to execute the awarded contract. As a result of Northstar Chemical's inability to deliver the bulk
liquid alum and execute a contract, staff recommends awarding the bid to the second lowest
bidder, Chemtrade, for the supply and delivery of liquid alum. Chemtrade's bid for this product is
$405/ton and the City estimates the use of 180 tons per year. The total amount of the bid is
$72,900. The table below is a comparison of bids for the supply and delivery of liquid alum.
SUPPLY OF LIQUID ALUM
BIDDER
Pacific Star Chemical
Chemtrade Chemicals US LLC
UNIT BID BID TOTAL
$336/ton x 180
$405/ton x 180
$60,480
$72,900
Liquid alum is used as a coagulating agent for municipal water treatment. When liquid alum is
added to water it attracts and binds with suspended particles to form larger particles. Being large,
these particles can then be removed through filtration.
The City has an annual budget of approximately $474,000 for water treatment chemicals. Staff
recommends authorizing the purchase of liquid alum to Chemtrade under a two (2) year sale and
purchase of goods and materials contract, with no options for renewals. The chemical will be
delivered by Chemtrade to the City treatment plant as -needed throughout the term of this bid
award.
Environmental Review:
None.
Fiscal Impact:
Sufficient funds to award the liquid alum bid, as identified in this report, are available in the Fiscal
Year 2019-20 Budget (402060-45200).
Public Notification:
None.
Attachments:
None.
Reviewed/Approved By:
Wend
aserman
Reviewed By:
Alan Fenstermacher
Assistant City Manager City Attorney
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Approved By:
Ch s Haze ine
City Manager
July 16, 2019, Item #1.7