Item Coversheet
  COUNCIL COMMUNICATION
CC #: 1570
File #: 0203-03
Title:Sodium Hydroxide Solution (BACC 12-2021) - Contract Purchase Agreement
Contact:

  Becky Philipp 916-774-5724 bphilipp@roseville.ca.us

 

Meeting Date: 7/7/2021

Item #: 6.5.

RECOMMENDATION TO COUNCIL

Staff recommends Council adopt a resolution to approve a contract purchase agreement with Univar USA Inc. as the lowest responsive bidder for Bay Area Chemical Consortium (BACC) Bid No. 12-2021 for the supply and delivery of sodium hydroxide solution for the Dry Creek Wastewater Treatment Plant, Pleasant Grove Wastewater Treatment Plant, Water Treatment Plant, and the Roseville Energy Park, and authorize the City Manager to execute it on behalf of the City of Roseville. The annual cost is $1,041,000. Funding for this agreement is included in the Fiscal Year (FY) 2021-22 budget.  

The bid allowed for three optional renewal years at one-year intervals. Staff requests authorization to continue utilizing the remaining optional renewal years of the bid contract without further Council approval until the contract expires, a new contract with better pricing becomes available, or until City staff determines that continuing with the same vendor is not in the City's best interest. 

 
BACKGROUND

The Wastewater Treatment Plants, the Water Treatment Plant, and the Roseville Energy Park have ongoing requirements for sodium hydroxide solution (caustic soda), which is used in the water treatment purification process to adjust pH and reduce corrosion in the distribution system. The chemical will be purchased as needed throughout the year.

In March 2021, the City participated in a regional chemical bid led by the Bay Area Chemical Consortium (BACC), with the East Bay Muni Utility District serving as the coordinating agency. BACC is comprised of water and wastewater agencies in the Northern California area, working together to purchase chemicals by combining bid solicitations. BACC is an informal cooperative that advertises and opens sealed competitive bids and then prepares bid recommendations. Combined bid solicitations offer vendors an opportunity to sell greater quantities of their products. Because more than 50 public agencies are participating, significant savings for chemical purchases are being passed along to the agencies’ water and wastewater customers.

 
FISCAL IMPACT

The annual cost is $1,041,000. Funding is included in the FY2021-22 budgets of the Environmental Utilities and Electric Departments. Spending for future renewals will be contingent upon Council approval of budgets. Projected spending for the optional renewal years is as follows: FY2022-23, $1,072,000; FY2023-24, $1,104,000; FY2024-25, $1,138,000.

ENVIRONMENTAL REVIEW

The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment (CEQA Guidelines §15061(b)(3)). The hauling and delivery of hazardous substances is regulated by the state. Hazardous material transport consistent with applicable safety regulations should not result in a significant environmental effect.

 

Therefore, the proposed Contract Purchase Agreement does not include the potential for significant environmental effect and is not subject to CEQA.


 

CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS

Goal C - Maintain a safe and healthy community


 
Respectfully Submitted,

Becky Philipp, Buyer

Dennis Kauffman, Assistant City Manager/Chief Financial Officer 
 


_____________________________
Dominick Casey, City Manager


ATTACHMENTS:
Description
Resolution 21-294
Contract Purchase Agreement