REPORT TO COUNCIL
SUBJECT
Title
Authorize the Issuance of a Purchase Agreement to Univar Solutions USA, LLC in the Amount of $450,000 for Sodium Hypochlorite (F24-197)
Report
REPORT IN BRIEF
Approval is requested to authorize the issuance of a Purchase Agreement in the amount of $450,000 to Univar Solutions USA, LLC of Chicago, IL to provide sodium hypochlorite at the Water Pollution Control Plant (WPCP). Approval is also requested to authorize the City Manager to increase the not-to-exceed amount for this contract, subject to available budget 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 for the procurement of goods and/or services greater than $250,000 in any one 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 WPCP is the disinfection of wastewater using sodium hypochlorite (strong bleach) at a 12.5% concentration. Sodium hypochlorite is delivered to the Plant in 5000-gallon bulk tankers two to four times per month, depending on operating conditions. 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 (detention 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 presence ensures that as much organic material has been oxidized. This critical treatment process ensures that the WPCP is discharging a well-treated process, meets all NPDES effluent limitations, and ensures public safety in the receiving waters.
The Bay Area Chemical Consortium (BACC) solicited bids for sodium hypochlorite in February 2024. Univar Solutions USA, LLC was the lowest responsive bidder in this region (see Attachment 1 - BACC Bid Tabulation). 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 identified chemicals that meet the City’s requirements are available through a BACC cooperative agreement and it is in the best interest of the City to purchase through this contract.
While chemical usage fluctuates each year, sometimes substantially, it is estimated that $450,000 will be needed to purchase appropriate amounts of sodium hypochlorite for the FY 2024/25 contract period. The price per gallon base unit cost increased from the previous year, from $2.88 a gallon to $3.25 a gallon, an 11% increase. This base cost does not include tax.
FISCAL IMPACT
Budgeted funds are available under Program 14601 - WPCP Operations - Wastewater Treatment in Fund 6080 (Wastewater Management Fund).
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 NOVA Workforce Services 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 for this contract, subject to available budget and if pricing and service remain acceptable to the City.
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 $250 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
A check or “Y” 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
___ General policy and legislative actions
Staff
Prepared by: David Battaglia, Purchasing Officer
Reviewed by: Dennis Jaw, Interim Director of Finance
Reviewed by: Ramana Chinnakotla, Director of Environmental Services
Reviewed by: Jaqui Guzmán, Deputy City Manager
Approved by: Tim Kirby, Interim City Manager
ATTACHMENTS
1. BACC Bid Tabulation