REPORT TO COUNCIL
SUBJECT
Title
Authorize the Issuance of a Blanket Purchase Order to Polydyne, Inc. for Polyacrylamide Polymer (F19-097)
Report
REPORT IN BRIEF
Approval is requested to authorize the issuance of a three-year blanket purchase order to Polydyne, Inc. of Riceboro, GA for the purchase of polyacrylamide polymer in the amount not to exceed $2,250,000.
EXISTING POLICY
Pursuant to Section 2.08.040 of the Sunnyvale Municipal Code, Council approval is required for the procurement of goods and/or services greater than $100,000 in any one transaction.
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 Sunnyvale Water Pollution Control Plant (WPCP) must use several chemical products to treat wastewater, including but not limited to high molecular weight cationic polyacrylamide polymers (polymer flocculants) to remove Total Suspended Solids (TSS) and reduce turbidity in the effluent prior to disinfection and discharge to the Moffett Channel located in the lower south bay.
Polymer flocculants are organic chemical compounds used in the dissolved Air Flotation Tanks (AFTs), which are a part of the tertiary treatment process. The Polymer bonds with solids from the secondary effluent to create material that rises to the surface allowing efficient removal in the plant AFTs. Removal of these materials from the wastewater stream is necessary to meet water quality effluent limitations described in the National Pollutant Discharge Elimination System (NPDES) permit and to meet even higher water quality standards for recycled water production. Polymer use at the WPCP is required throughout the year and varies based on seasonal, dynamic and unpredictable conditions that can dictate significant amounts of polymer to meet effluent discharge requirements.
The City typically bids wastewater treatment chemicals every three to five years based on estimated quantities. In the case of Polymer, extensive analysis and testing must be conducted prior to or during the bidding process, and on an ongoing basis to ensure that the correct product formulation is used. The last competitive bid for Polymer was conducted in 2008 (RTC No. 08-200), with a three-year contract being awarded to Polydyne, Inc. Subsequent contract extensions were approved by Council in 2011 and 2014 (RTC Nos. 11-103 and 14-0116). In 2015, Council awarded a one-year contract to Polydyne, Inc. in conjunction with the Bay Area Chemical Consortium (BACC), a regional procurement cooperative coordinated by the Dublin San Ramon Services District, which was subsequently renewed for an additional five years (RTC No. 15-0568). BACC no longer bids Polymers as the process is cumbersome.
Purchasing issued an Invitation for Bids through the City’s DemandStar public procurement network on April 9, 2019. Six vendors requested bid documents through DemandStar. Sealed bids were opened on May 8, 2019 with one responsive bid received (see Attachment 1 for Bid Summary). Marubeni Specialty Chemicals Inc. submitted a bid with an unacceptable manufacturer and product. Staff recommends deeming their bid nonresponsive for not meeting the minimum product requirements. Therefore, the sole responsive and responsible bid was submitted by Polydyne, Inc. with a per wet pound of active polymer unit price of $2.77.
FISCAL IMPACT
Due to the significant fluctuations of the use of Polydyne each year, it is estimated that $2,250,000 will be needed for the three-year contract period with Polydyne, Inc. This amount may need to be increased based upon demand. Budgeted funds are available in the Wastewater Operations Program, funded in the Wastewater Enterprise Fund.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
Take the following actions:
- Authorize the issuance of a three-year blanket purchase order to Polydyne, Inc. for the purchase of polyacrylamide polymer in the amount not to exceed $2,250,000, in substantially the same form as Attachment 2 to the report and reject the bid of Marubeni Specialty Chemicals Inc. as non-responsive.
- Authorize the City Manager authority to modify the purchase order amount within budgeted funding.
Prepared by: Gregory S. Card, Purchasing Officer
Reviewed by: Timothy J. Kirby, Director of Finance
Reviewed by: Ramana Chinnakotla, Director of Environmental Services
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Bid Summary
2. Draft Blanket Purchase Order