City Council Meeting - FINAL


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  6.A.       
Meeting Date: 11/03/2020  
Co-Submitter: James Huchel From: Brian Huntzinger, Water Production Manager

Information
TITLE:
Consideration and Approval of Contract:  Purchase water and wastewater treatment chemicals through an Invitation for Bids, Bid number 2021-05 (Approve contracts with four (4) vendors for water & wastewater treatment chemicals).
STAFF RECOMMENDED ACTION:
Approve and award three (3) year initial term contracts, with options to extend for two (2) one (1) year renewals, with four (4) national companies for the purchase of bulk water and wastewater treatment chemicals as follows:
  1. DPC Enterprises, L.P. of Glendale, Arizona agrees to provide gaseous chlorine for an annual not to exceed amount of $70,000.
  2. Thatcher Company of Arizona, Inc. of Salt Lake City, Utah agrees to provide cationic polymer for an annual not to exceed amount of $100,000.
  3. Thatcher Company of Arizona, Inc. of Salt Lake City, Utah agrees to provide sodium hypochlorite for an annual not to exceed amount of $65,000. 
  4. Univar USA Inc. of Phoenix, Arizona agrees to provide liquid sodium hydroxide (25%) for an annual not to exceed amount of $30,000. 
  5. Hills Brothers Chemical Company of Phoenix, Arizona agrees to provide liquid sodium hydroxide (50%) for an annual not to exceed amount of $30,000.
Authorize the City Manager to sign all necessary documents.
Executive Summary:
Chemicals represent a large investment in the effective operation of Flagstaff Water Services treatment plants.  These chemicals are critical to the treatment of water and wastewater in order to comply with water quality regulations and ensure the public's safety.  These chemicals are unavailable in the City of Flagstaff and must be delivered; many are located outside of Arizona.  Bulk chemicals are purchased by each treatment plant on an as-needed basis based on the demand for water, reclaimed water, and the treatment of wastewater.  These chemicals disinfect and remove impurities from all water sources including potable drinking water, reclaimed water, and wastewater.

These purchase amounts exceed administrative authority and require action by the City Council.
Financial Impact:
These competitively bid contracts will reduce the financial impacts to the Water Services Division, consolidating the purchasing needs of these chemicals for Water Production, Wastewater Treatment, and Reclaimed Water Sections.  Funding to purchase chemicals is budgeted within Water Services treatment plant budgets for Lake Mary, Rio de Flag, Wildcat Hill, and Reclaim Water.
Policy Impact:
None
Connection to PBB Key Community Priorities/Objectives & Regional Plan:
Priority Based Budget Key Community Priorities and Objectives
  • Safe & Healthy Community:  Foster a safe, secure, and healthy community.
  • Sustainable, Innovative Infrastructure:  Deliver outstanding services to residents through a healthy, well-maintained infrastructure system.
Regional Plan
  • Goal WR.1:  Maintain a sustainable water budget incorporating regional hydrology, ecosystem needs, and social and economic well-being.
  • Goal WR.2:  Manage a coordinated system of water, wastewater, and reclaimed water utility service facilities and resources at the City level and identify funding to pay for new resources.
    • Policy WR2.1:  Develop and adopt and integrated water master plan that addresses water resources, water production and its distribution, wastewater collection and its treatment, and reclaimed water treatment and its distribution.
    • Policy WR2.2  Maintain and develop facilities to provide reliable, safe, and cost effective water, wastewater, and reclaimed water services.
  • Goal WR.3:  Satisfy current and future human water demands and the needs of the naturlalenvironment through sustainable and renewable water resources and strategic conservation measure.
  • Goal WR.6:  Protect, preserve, and improve the quality of surface water, groundwater, and reclaimed water in the region.
Has There Been Previous Council Decision on This:
Yes, City Council approved similar bulk chemical purchase contracts from bids in 2006, 2009, and 2015.
Options and Alternatives:
  1. Award the contracts to DPC, Thatcher, Univar, and Hills Brothers as the lowest responsive, responsible bidders for their respective chemicals. Or
  2. Require staff to constantly secure new prices for bulk chemicals for each individual purchase; which may lead to higher purchase and transportation costs and make budgetary decisions more difficult.  Or
  3. Disallow purchase of bulk chemicals which would hinder compliance with State law and Federal water quality regulations.
Background/History:
Chemicals represent a large investment in the effective operation of the Water Services Division's treatment plants.  Water Services use the following chemicals for the respective purposes:
  • Chlorine is used for the disinfection of treated surface water, groundwater, wastewater, and reclaimed water.
  • Sodium hydroxide (caustic soda) is used to raise the pH of treated surface water.
  • Coagulants such as aluminum sulfate and aluminum chlorohydrate are used to remove suspended impurities in raw surface water.
  • Cationic polymers are used to assist in the removal of impurities in water & wastewater.
  • Sulfur dioxide is used in the removal of chlorine from treated wastewater/reclaimed water. 

The recommended award was procured by Purchasing staff through a formal solicitation. An Invitation for Bid (IFB) was posted on PlanetBids from July 16, 2020, to August 19, 2020, and an advertisement was placed in The Arizona Daily Sun on July 26 & August 2 of 2020. Five companies submitted bids: DPC Enterprises, Hill Brothers Chemical, Applied Specialties, Univar Solutions, and Thatcher. After reviewing all the bids, all but Applied Solutions are considered to be the lowest responsive, responsible bidders.
Key Considerations:
By establishing contract pricing and defining delivery requirements, the City receives a consistent product at the best possible purchase price.
Expanded Financial Considerations:
Flagstaff Water Services annually budgets for the purchase of these chemicals within the following operational sections:  Lake Mary Water Treatment Plant, Rio de Flag Water Reclamation Plant, and Wildcat Hill Wastewater Treatment Plant.  The FY21 allocations are as follows:

Lake Mary Water Treatment Plant 202-08-301-1011-0-4362:  $308,200
Wildcat Hill Wastewater Treatment Plant 203-08-311-1111-0-4362 & 1116-0-4362: $170,000
Rio De Flag Water Reclamation Plant 203-08-312-1121-0-4362:  $45,000
Reclaim 204-08-321-1202-0-4362:  $75,000
Community Benefits and Considerations:
Maintaining water quality standards is a prime benefit to the community.
Expanded Options and Alternatives:
Choose not to purchase from bid pricing and purchase chemicals at market price.
Attachments
DPC contract
DPC Attachment 1
Hill Brothers contract
Hill Brothers Attachment 1
Thatcher contract
Univar contract
Univar Attachment 1


    

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