REPORT TO COUNCIL
SUBJECT
Title
Authorize the Issuance of a Purchase Agreement to Univar Solutions USA, LLC in the Amount of $375,000 for Sodium Hydroxide (F26-452)
Report
STAFF RECOMMENDATION
Recommendation
Take the following actions:
- Authorize the issuance of a Purchase Agreement in the amount of $375,000 to Univar Solutions USA, LLC of Chicago, IL to provide sodium hydroxide at the Water Pollution Control Plant (Plant) from July 1, 2026, through June 30, 2027;
- Authorize the City Manager to execute the agreement when all necessary conditions have been met;
- Authorize the City Manager to increase the not-to-exceed amount for this contract during the approved contract term and optional extensions, subject to available budget and if pricing and service remain acceptable to the City; and
- Authorize the City Manager to renew the purchase agreement for up to three (3) additional one-year periods, consistent with the Bay Area Chemical Consortium (BACC) contract terms, subject to the appropriation of funds by the City Council.
Report
BASIS FOR RECOMMENDATION
Proper wastewater treatment practices protect the City’s public health and environment and ensure compliance with the U.S. Environmental Protection Agency’s NPDES Permit and State Water Board environmental regulations, including Title 22 regulations governing recycled water. Various chemicals are used in bulk quantities in wastewater treatment processes, and sodium hydroxide (caustic) is a critical component of these processes. A tertiary treatment process at the Plant uses caustics to remove pond algae prior to filtration and disinfection. Treated water is subsequently discharged or reused as recycled water. When the Plant is producing recycled water, caustics are delivered to the Plant in 5,000-gallon bulk tankers about twice weekly. This critical treatment process ensures that the Plant discharges well-treated process water, meets all regulatory effluent limitations, and protects public safety and environmental health in the receiving waters and recycled water system.
The Bay Area Chemical Consortium (BACC) solicited bids for caustics in February 2026. Univar Solutions USA, LLC (Univar) was the lowest responsive/responsible bidder in this region (see Attachments 1 and 2 to the report). The BACC leverages volume purchasing power on behalf of 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 required chemicals are available through the BACC cooperative agreement, and purchasing through this contract is in the City’s best interest.
While chemical usage fluctuates each year, sometimes substantially, an estimated $375,000 will be needed to purchase the appropriate amount of caustic for the FY 2026/27 contract period. The base unit price is $1,165.47 per dry ton, plus applicable sales tax. Once the new secondary treatment plant, currently under construction as part of the Clean Water Program, is online, the City’s reliance on the ponds and associated chemical use will decrease significantly.
ENVIRONMENTAL REVIEW
This project is exempt under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301(c), minor alteration of existing facilities, mechanical equipment, highways and streets involving negligible or no expansion of use beyond that which presently exists.
FISCAL IMPACT
Budgeted funds for wastewater treatment chemicals are available in Fund 6080 - Wastewater Management Fund under Program 14600 - 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.
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: Matthew Paulin, Director of Finance
Reviewed by: Mansour Nasser, Interim 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 Letter & Bid Tabulation