REPORT TO COUNCIL
SUBJECT
Title
Authorize the Issuance of a Purchase Agreement to Univar Solutions USA, LLC in an Amount not to exceed $450,000 for Sodium Hypochlorite (F25-360)
Report
REPORT IN BRIEF
Authorize the issuance of a Purchase Agreement in an amount not to exceed $450,000 to Univar Solutions USA, LLC of Chicago, IL, for the purchase of Sodium Hypochlorite for the Water Pollution Control Plant. Approval is also requested to authorize the City Manager to increase the not-to-exceed amount and to renew the Purchase Agreement for up to three additional one-year periods, subject to budget availability and if pricing and service remain acceptable to the City.
EXISTING POLICY
Pursuant to Section 2.08.040 of the Sunnyvale Municipal Code (SMC), Council approval is required to procure goods and/or services greater than $250,000 in any single transaction.
Further, SMC Section 2.08.220(a) authorizes the Purchasing Officer to direct the City’s participation with one or more governmental, public, or quasi-public agencies in a cooperative agreement for the procurement of goods and/or services, provided that at least one of the agencies has solicited bids.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
BACKGROUND AND DISCUSSION
The final treatment process at the Water Pollution Control Plant (Plant) is wastewater disinfection using sodium hypochlorite (strong bleach) at a 12.5% concentration. Depending on operating conditions, sodium hypochlorite is delivered to the Plant in 5000-gallon bulk tankers two to four times monthly. The chlorine in the sodium hypochlorite effectively reduces the number of pathogens in the treated wastewater. Sodium hypochlorite is pumped into chlorine contact tanks and given time to oxidize organic material, dramatically reducing the number of pathogens in the plant effluent. Staff measure residual bacteria to determine how well the disinfection process works and measure the amount of chlorine residual once the disinfection process has concluded. A residual chlorine presence ensures that as much organic material as possible has been oxidized. This critical treatment process ensures that the Plant is discharging a well-treated process, meets all regulatory effluent limitations, and ensures public safety in the receiving waters.
The Bay Area Chemical Consortium (BACC) solicited bids for sodium hypochlorite in February 2025. Univar Solutions USA, LLC was the lowest responsive bidder in this region (see Attachments 1 and 2 to the report). The BACC leverages volume purchasing power for over 60 water and wastewater agency members across the Bay Area. Bulk chemical purchases facilitated by the BACC create bidding efficiencies for participating agencies by offering volume pricing discounts during the bidding process. The identified chemicals that meet the City’s requirements are available through a BACC cooperative agreement, and it is in the City's best interest to purchase through this contract.
While chemical usage fluctuates each year, sometimes substantially, it is estimated that $450,000 will be needed to purchase the appropriate amount of sodium hypochlorite for the FY 2025/26 contract period. The price per gallon base unit cost is $3.29 a gallon. This base cost does not include tax.
FISCAL IMPACT
Budgeted funds are available in Fund 6080 - Wastewater Management under Program 14601 - WPCP Operations - Wastewater Treatment.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the City Hall reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
RECOMMENDATION
Recommendation
Take the following actions:
- Authorize the issuance of a purchase agreement to Univar Solutions USA, LLC, in the not-to-exceed amount of $450,000 for the purchase of sodium hypochlorite; and
- Authorize the City Manager to increase the not-to-exceed amount of the annual purchase order within operating budgeted appropriation limits if additional quantities are needed for wastewater treatment processes; and
- Authorize the City Manager to renew the purchase agreement for up to three (3) additional one-year periods, if the BACC regional award contract with Univar Solutions is renewed or extended, subject to the appropriation of funds by the City Council.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
___ Contract or franchise
EXEMPT FROM THE LEVINE ACT
_X_ Competitively bid contract*
___ Labor or personal employment contract
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
___ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: David Battaglia, Purchasing Officer
Reviewed by: Matt Paulin, Director of Finance
Reviewed by: Ramana Chinnakotla, Director of Environmental Services
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. BACC Standard Agreement
2. BACC Award & Bid Summary