CITY COUNCIL AGENDA ITEM
Memo Date: September 6, 2022
Agenda Date: September 27, 2022
Prepared By: Sean B. McFarland, Water Treatment Manager
Through: John A. Walsh, P.E., Utilities Director
Requested Action:
title
To Approve a Resolution Waiving the Competitive Bidding Process for the Purpose of Making Sole Source Purchase of CAL~FLO® Liquid Lime from Burnett Lime Co., Inc., Campobello, SC for FY2023; To Approve a One-Year Contract Agreement with Three (3) One-Year Renewals with 1) Matheson Tri-Gas, Inc., Irving, TX for Carbon Dioxide 2) Thatcher Inc., Deland, FL for the purchase of Ferric Sulfate 3) Allied Universal Corp., Miami, FL for Sodium Hypochlorite for both the Dyal WTP & Sellers WRF; To Approve a 2nd Amendment of a Piggy-Back Contract with the City of Oviedo, FL for Contract ITB 19-36 Harcros Chemicals, Inc., Kansas City, KS for the Purchase and Delivery of Fluoride; To Authorize the City Manager to Execute Contracts, Approve Annual Renewals, Amendments, and Change Orders in an Amount not to Exceed the Total FY2023 Budget for Chemicals; Pending Approval of the FY2023 Budget
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BACKGROUND:
The Dyal Water Treatment (WTP) and Sellers Wastewater Treatment (WWTP) Plants establish estimated annual chemical budgets based on anticipated demands; however, demands will fluctuate and the actual use of each chemical will vary. As these variances occur, staff will adjust chemical budgets throughout the year as necessary and may lower or increase based on need; however, the total FY23 budgets for chemicals for the Dyal WTP ($4,910,557) and Sellers WWTP ($142,755) will not be exceeded unless they are resubmitted to City Council for approval. The requested actions for the chemicals outlined in this agenda total $1,647,399 for the Dyal WTP and $100,320 for the Sellers WWTP leaving remaining chemical budgets of $3,263,158 for Dyal and $42,435 for Sellers. Remaining chemical budgets will be used for chemical purchases previously approved or are currently in process. For a full accounting of FY23 anticipated chemical usage see EXHIBIT A attached to this agenda item.
Staff is requesting City Council approval to waive the competitive bidding process for the purpose of making sole source purchases of CAL~FLO® Liquid Lime from Burnett Lime Co., Inc., Campobello, SC. In an effort to improve raw water treatment processes, the Utilities Department consulting engineer (Jacobs Engineering) recommended the switch from dry lime to a lime slurry called CAL~FLO®. In water treatment processes, CAL~FLO®. slurry typically replaces dry lime for alkalinity adjustment, which can be required for more effective coagulation and minimization of metals residuals. The change to CAL~FLO® slurry eliminates the high maintenance and unreliable feed problems associated with dry lime and leads to more consistent treatment. Dyal WTP total - $302,078.
Due to increases in chemical prices, Dyal staff and Purchasing developed a bid for Carbon Dioxide, Ferric Sulfate, and Sodium Hypochlorite. Purchasing published ITB B-22-12-COC on June 20, 2022, and solicited 545 vendors of which 47 reviewed the solicitation. On July 19, 2022, 7 submittals were received and publicly opened. The apparent low bidders are Matheson Tri-Gas, Inc., Thatcher, Inc., and Allied Universal Corporation.
|
Company Name |
Award |
Not Selected |
Bid Amount |
|
Matheson Tri Gas |
X |
|
Carbon Dioxide@ $0.1295 per pound |
|
Thatcher Chemical of Florida |
X |
|
Ferric Sulfate@ $2,355 per dry ton of iron |
|
Allied Universal Corp |
X |
|
Liquid Sodium Hypochlorite @ $1.018 per gallon |
|
Kemira Water Solution |
|
X |
Ferric Sulfate @ $2,761.11 per dry ton of iron |
|
Univar Solution USA |
|
X |
No Bid |
|
Pencco Inc |
|
X |
No Bid |
|
USALCO LLC |
|
X |
No Bid |
Staff is requesting approval of a one-year contract with three (3) one-year renewal contracts under ITB B-22-12-COC for the following apparent low bidders:
1. Matheson Tri-Gas, Inc., Irving, TX for the purchase of Carbon Dioxide under Bid # B-22-12-COC. Dyal WTP total - $292,000
2. Thatcher, Inc., Deland, FL for the purchase of Ferric Sulfate under Bid # B-22-12-COC. Dyal WTP total - $447,000
3. Allied Universal Corp., Miami, FL for the purchase of Sodium Hypochlorite under Bid # B-22-12-COC. Dyal WTP total - $573,825 / Sellers WWTP total - $100,320
Staff is requesting City Council to approve a 2nd Amendment of a Piggy-Back Contract with the City of Oviedo, FL for Contract ITB 19-36 Harcros Chemicals, Inc., Kansas City, KS (expiration 9/30/23) for the purchase and delivery of Fluoride (hydrofluosilicic acid). Dyal WTP total - $32,496
Staff is requesting that City Council authorize the City Manager to negotiate the contracts with Matheson Tri-Gas, Thatcher, Inc., and Allied Universal Corporation as outlined in ITB B-22-12-COC. Staff is also requesting that City Council authorize the City Manager to approve all future annual renewals, amendments, and change orders between the various chemical providers up to the City Manager’s signing authority for Dyal WTP and Sellers WWTP chemical purchases for FY23.
STRATEGIC PLAN CONNECTION:
N/A
BUDGETARY IMPACT:
Budgeted No
If not budgeted, is amendment/transfer attached? N/A
Amount Requested: Dyal WTP - $1,647,399
Sellers WWTP - $100,320
Total - $1,747,719
Account Numbers: 421-4020-536.52-09 - Dyal
421-4120-536.52-09 - Sellers
Account Name Chemicals
Source of Funds: Operating Revenue
Dyal WTP Budgeted
Sodium Hypochlorite DYCH01 $75,600
Hydrofluosilicic Acid DYCH03 $32,496
Ferric Sulfate DYCH04 $447,000
Carbon Dioxide DYCH06 $292,000
CAL~FLO® DYCH10 $302,078
Sodium Hypochlorite DYCH20 $498,225
Total $1,647,399
Sellers WWTP Budgeted
Sodium Hypochlorite $100,320
PREVIOUS ACTION:
On October 27, 2020, City Council Approved Participation in a Cooperative Purchase Agreement with Harcros Chemicals, Inc., Kansas City, Kansas, to Purchase Hydrofluorosilicic Acid (Fluoride) Utilizing the City of Oviedo Contract #ITB19-36, Effective October 1, 2019 through September 30, 2020 with Four (4) Additional One-Year Extensions. Approve year One (1) of four (4) Extensions and. Grant the City Manager the Authority to Sign and Implement Additional Extensions and Purchase Orders should the City of Oviedo Extend the Contract
On September 28, 2021, City Council Approved a Resolution Waiving the Competitive Bidding Process for the Purpose of Making Sole Source Purchase of Cal Flo Liquid Lime from Burnett Lime Co., Inc., Campobello, SC and LT27 Polymer from Fort Bend Services, Inc., Stafford, TX for the Dyal Water Treatment Plant and the Jerry Sellers Water Reclamation Facility for FY2022; To Approve the Second Amendment to Purchase Agreement with 1) Matheson Tri-Gas, Inc., Irving, TX for Carbon Dioxide, 2) Kemira Water Solutions, Inc., Bartow, FL for Ferric Sulfate, and 3) Allied Universal Corp., Miami, FL for Sodium Hypochlorite; To Authorize the City Manager to Approve Change Orders in an Amount not to Exceed the Total FY2022 Budget for Chemicals; Pending Approval of the FY2022 Budget
RECOMMENDED MOTION:
Recommendation
To Approve a Resolution Waiving the Competitive Bidding Process for the Purpose of Making Sole Source Purchase of CAL~FLO® Liquid Lime from Burnett Lime Co., Inc., Campobello, SC for FY2023; To Approve a One-Year Contract Agreement with Three (3) One-Year Renewals with 1) Matheson Tri-Gas, Inc., Irving, TX for Carbon Dioxide 2) Thatcher Inc., Deland, FL for the purchase of Ferric Sulfate 3) Allied Universal Corp., Miami, FL for Sodium Hypochlorite for both the Dyal WTP & Sellers WRF; To Approve a 2nd Amendment of a Piggy-Back Contract with the City of Oviedo, FL for Contract ITB 19-36 Harcros Chemicals, Inc., Kansas City, KS for the Purchase and Delivery of Fluoride; To Authorize the City Manager to Execute Contracts, Approve Annual Renewals, Amendments, and Change Orders in an Amount not to Exceed the Total FY2023 Budget for Chemicals; Pending Approval of the FY2023 Budget.