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ADOPT A RESOLUTION AWARDING TWO CHEMICAL SUPPLY CONTRACTS FOR DRINKING WATER TREATMENT
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Award a five-year contract to Chemrite, Inc. of Buford, GA for the amount not-to-exceed $651,000 ($8.68 per gallon) to purchase corrosion inhibitor (Exhibit 1 to the Resolution).
2. Award a five-year contract to Northstar Chemical doing business as (DBA) Pacific Star Chemical, LLC of Sherwood, OR for the amount not-to-exceed $376,855.65 ($13.99 per gallon) to purchase citric acid (Exhibit 2 to the Resolution).
It is further recommended that the City Manager be authorized to take all necessary and appropriate actions to carry out the purpose and intent of this resolution.
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Summary
The Municipal Utilities Department (MUD) operates and maintains the Delta Water Treatment Plant (DWTP). The DWTP uses approved chemicals in the water treatment process to provide Stockton residents with high-quality drinking water that meets all State and Federal regulations. The DWTP also relies on advanced membrane filtration in the final treatment step prior to delivery to the water distribution system. The membrane filters require regular cleaning and maintenance including the use of citric acid to remove impurities collected during the filtration process.
If approved by the City Council, this action will award a five-year contract to Chemrite, Inc. of Buford, GA for the purchase of corrosion inhibitor, and a five-year contract to Northstar Chemical dba Pacific Star Chemical, LLC of Sherwood, OR for the purchase of citric acid.
DISCUSSION
Background
The Intake Pump Station located on Empire Tract pumps water from the San Joaquin River via a 13-mile pipeline to the DWTP. This water must be treated and filtered before it is delivered as clean, safe drinking water to Stockton customers. The DWTP uses certain approved chemicals to remove impurities during the treatment process to meet required drinking water quality standards.
The DWTP was designed and constructed with an advanced membrane filtration system to provide Stockton residents with high-quality drinking water that meets all State and Federal regulations. The membrane filtration system uses filters that require regular maintenance that includes the use of citric acid to remove impurities attached to the membrane filters.
A corrosion inhibitor is a chemical (liquid orthophosphate), which reduces pipeline corrosion of the water distribution system. The use of a corrosion inhibitor is a standard practice in the treatment of drinking water nationwide.
Present Situation
On January 4, 2024, the City advertised an Invitation For Bids for the purchase of corrosion inhibitor (PUR 24-013) and citric acid (PUR 24-019). In addition, notifications were sent via e-mail to multiple chemical vendors.
On February 8, 2024, the City Clerk opened, examined, and publicly declared the sealed bids. The bid results were as follows:
|
VENDOR |
Chemical |
UNIT COST per Gallon |
UNIT COST W/TAX |
Annual Quantity |
|
Chemrite, Inc. |
Corrosion Inhibitor |
$8.68 |
$8.68 |
15,000 gallons |
|
Pacific Star Chemical, LLC |
Citric Acid |
$13.99 |
$15.07 |
5,000 gallons |
The bids submitted by Chemrite, Inc. and Northstar Chemical dba Pacific Star Chemical, LLC are regular in all respects and meet the City’s specifications. The City will pay only for the quantity of chemicals delivered.
The purchase of corrosion inhibitor is exempt from taxation. However, the purchase of citric acid is subject to tax as this chemical is used during the water treatment process. In addition, the DWTP is located in San Joaquin County, and goods such as citric acid, are taxed at a 7.75 percent tax rate.
Staff recommends the City Council award a five-year contract to Chemrite, Inc. of Buford, GA for the purchase of corrosion inhibitor, and a five-year contract to Northstar Chemical dba Pacific Star Chemical, LLC of Sherwood, OR for the purchase of citric acid.
FINANCIAL SUMMARY
Funds will be available following Council approval of the FY 2024-25 Annual Budget for the procurement of each chemical for FY 2024-25 from the Water Utility Fund, and as allocated annually in the table below:
|
VENDOR |
Chemical |
Annual Quantity |
Annual Amount |
|
Chemrite, Inc. |
Corrosion Inhibitor |
15,000 gallons |
$130,200.00 |
|
Pacific Star Chemical, LLC |
Citric Acid |
5,000 gallons |
$75,371.13 |
The five-year not-to-exceed amount is $651,000 for Chemrite, Inc. and $376,855.63 for Pacific Star Chemical, LLC. Future chemical purchases will be budgeted in the following fiscal years to be approved by the City Council during the annual budget process.
There is no impact to the General Fund, or any other unrestricted funds, from this action.