REPORT TO COUNCIL
SUBJECT
Title
Authorize the Issuance of a Purchase Agreement to Chemtrade Chemicals US LLC in the Amount of $431,000 for Aluminum Sulfate (F26-430)
Report
STAFF RECOMMENDATION
Recommendation
Take the following actions:
- Award a Purchase Agreement in the amount of $431,000 to Chemtrade Chemicals US LLC of Parsippany, NJ to provide Aluminum Sulfate at the Water Pollution Control Plant (Plant);
- 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, subject to available budget provided 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 if the (Bay Area Chemical Consortium) BACC regional award contract with Chemtrade Chemicals is renewed or extended, subject to the appropriation of funds by the City Council.
Report
BASIS FOR RECOMMENDATION
Proper wastewater treatment practices protect Sunnyvale’s public health and environment and ensure compliance with the City’s environmental permits. Various chemicals are used in bulk quantities in wastewater treatment processes, and Aluminum Sulfate (alum) is one such chemical.
A tertiary treatment process at the Plant uses alum to remove pond algae prior to filtration and disinfection, and the treated water is discharged to the environment or reused as recycled water. Depending on operating conditions, alum is 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.
The Bay Area Chemical Consortium (BACC) solicited bids for alum in February 2026. Chemtrade Chemicals US LLC (Chemtrade) was the lowest responsive and responsible 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 $431,000 will be needed to purchase the appropriate amount of alum for the FY 2026/27 contract period. The base unit price per gallon is $1.5419 and does not include tax.
ENVIRONMENTAL REVIEW
This action is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 (Class 1 - Existing Facilities), specifically subsection (c), which applies to the operation, repair, maintenance, or minor alteration of existing public facilities involving negligible or no expansion of use.
FISCAL IMPACT
Budgeted funds for chemicals used for wastewater treatment 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.
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: Connie Verceles, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. BACC Standard Agreement
2. BACC Award & Bid Summary