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ADOPT A RESOLUTION TO APPROVE FINDINGS AND AUTHORIZE CONTRACT AGREEMENTS FOR THE PURCHASE OF WATER AND WASTEWATER TREATMENT CHEMICALS THROUGH THE BAY AREA CHEMICAL CONSORTIUM
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve findings in support of an exception to the competitive bidding process.
2. Authorize five contracts for the purchase of chemicals for water and wastewater treatment with an estimated not-to-exceed cost of $3,781,000 for Fiscal Year 2026-27.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
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Summary
The Municipal Utilities Department (MUD) is comprised of three enterprise funds including Water, Wastewater, and Stormwater Utilities. MUD personnel operate and maintain the Regional Wastewater Control Facility (RWCF), an advanced tertiary sewer treatment facility with a 55 million-gallon per day (MGD) capacity, and Delta Water Treatment Plant (DWTP), which provides up to 30 million gallons per day of potable water from the Delta and Mokelumne River.
Various chemical compounds, regulated at both state and federal levels, are commonly used in water and wastewater treatment. They play a crucial role in removing impurities, enhancing water quality, and protecting public health.
If approved by the City Council, this action would approve findings supporting an exception to the competitive bidding process and authorize the award of five contracts for the purchase of water and wastewater treatment chemicals. Each contract would be awarded to the most responsive, responsible, and competitive vendor for the respective chemical at the specified unit price. The contracts would have an initial term of one year, with options to renew annually for up to three additional one-year terms.
DISCUSSION
Background
In 2013, the City of Stockton (City) joined the Bay Area Chemical Consortium (BACC) to benefit from bulk product pricing for the purchase of water and wastewater treatment chemicals. The BACC is a group of public agencies from eight regions located throughout the Central Valley and Bay Area that coordinate competitive bidding for chemical contracts. The MUD was one of fifty-four agencies that participated in the bidding process this year.
Various chemical compounds, regulated at both state and federal levels, are commonly used in water and wastewater treatment. They are essential for removing impurities, improving water quality, and protecting public health, while ensuring the City complies with drinking water standards and wastewater discharge permit requirements.
Over the last several years, significant cost savings have been realized by the City’s participation in the BACC. The chemicals to be purchased and the recommended suppliers for this year are listed below:
1. KAAM Group Co. of Carlsbad, California for the purchase of Aqueous Ammonia at $1.20 per gallon (Exhibit 1 to the Resolution).
2. Univar Solutions USA LLC. of Kent, Washington for the purchase of Sodium Bisulfite at $3.10 per gallon (Exhibit 2 to the Resolution).
3. Univar Solutions USA LLC. of Kent, Washington for the purchase of Sodium Hydroxide (25%) at $1,110.26 per dry ton and Sodium Hydroxide (50%) at $712.84 per dry ton (Exhibit 3 to the Resolution).
4. Univar Solutions USA LLC. of Kent, Washington for the purchase of Sodium Hypochlorite at $3.49 per gallon (Exhibit 4 to the Resolution).
5. Kemira Water Solutions of Lawrence, Kansas for the purchase of Ferric Chloride at $1,164.00 per dry ton and Ferrous Chloride at $1,165.00 per dry ton (Exhibit 5 to the Resolution).
BACC members pay a lump sum of approximately $300 per bid to facilitate the bidding process. Participants are encouraged not to vary from the lowest overall bid, as it would undermine the prices quoted for bulk quantities.
MUD staff participated in the preparation of the bid specifications and selected the specific chemicals required at the RWCF and DWTP. The combined request for bids from all the agencies is a cooperative purchase agreement that offers vendors an opportunity to sell larger quantities of their products, while offering lower prices for participating agencies.
Present Situation
Since 2020, the Bay Area Clean Water Agencies (BACWA) has coordinated all bid specification preparations and advertisements on behalf of BACC. The invitation to bid for each chemical was advertised by BACWA in the Alameda Times Star newspaper on January 22, 2026. As the coordinating agency, BACWA received bids electronically through PlanetBids.com by February 19, 2026. Results were then released to BACC members.
The lowest bids of interest to the City are shown in the following table:
|
Chemical |
Unit |
FY 25-26 Rate $/Unit |
FY 26-27 Lowest Bidder |
FY 26-27 Rate $/Unit |
Unit Price Change |
|
Aqueous Ammonia (19%) |
Gal |
$1.30 |
KAAM Group Co. |
$1.20 |
-8% |
|
Sodium Bisulfite (40%) |
Gal |
$2.84 |
Univar Solutions USA LLC. |
$3.10 |
9% |
|
Sodium Hydroxide (25%) |
Dry Ton |
$888.48 |
Univar Solutions USA LLC. |
$1,110.26 |
25% |
|
Sodium Hydroxide (50%) |
Dry Ton |
$774.00 |
Univar Solutions USA LLC. |
$712.84 |
-8% |
|
Sodium Hypochlorite (12.5%) |
Gal |
$3.29 |
Univar Solutions USA LLC. |
$3.49 |
6% |
|
Ferric Chloride |
Dry Ton |
$1,633.55 |
Kemira Water Solutions |
$1,164.00 |
-29% |
|
Ferrous Chloride |
Dry Ton |
$1,375.35 |
Kemira Water Solutions |
$1,165.00 |
-15% |
The chemical industry experienced widespread price increases in the years following the COVID-19 pandemic, predominantly due to material and labor shortages, production disruption, and increased transportation costs. The current prices reflect increased stability in the chemical supply markets.
The lowest responsible, responsive bidder was determined by the overall lowest cost provided to all the BACC member agencies in each region. Contracts are awarded to the lowest overall bidder of all the agencies within the designated regions to take advantage of the lower bulk quantity bids. Choosing a bid other than the lowest overall bid undermines the intent of the consortium and negates the value of participation in the consortium.
Findings
Pursuant to the Stockton Municipal Code (SMC) section 3.68.070, the City Council may approve findings which justify and support an exception to the competitive bidding process. The following findings justify and support an exception:
1. The Bay Area Chemical Consortium (BACC) is a group of 54 public agencies that coordinates their chemical bids to obtain the best possible bulk bid price.
2. BACC conducts a competitive bid process to obtain the best possible bulk bid price.
3. The City of Stockton joined BACC to participate in the public bidding of chemicals necessary for the treatment of water and wastewater.
4. The bid specification used by BACC has been reviewed and determined to be compatible with City of Stockton standards.
5. Participating in the BACC cooperative purchase agreement benefits the City by reducing costs on large scale chemical purchases.
6. All five proposed contracts are cooperative purchasing agreements for the purchase of supplies or services through other governmental jurisdictions or public agencies.
FINANCIAL SUMMARY
Funds will be available upon the City Council approval of the FY 2026-27 Wastewater Utility and Water Utility budget in account numbers 6513-000-650005-610-000-00-65-000-000 and 6513-511-650005-600-000-00-65-000-000 for the procurement of each chemical for FY 2026-27.
|
Chemical |
Annual Est. Quantity |
Cost/ Unit |
Wastewater Annual Est. Cost1 |
Water Annual Est. Cost |
Total 4-year Not to Exceed Amount |
|
Aqueous Ammonia |
80,000 Gal WW |
$1.20 |
$105,000 |
$0 |
$439,300 |
|
Sodium Bisulfite |
220,000 Gal WW 9,500 Gal W |
$3.10 |
$744,000 |
$37,000 |
$3,267,500 |
|
Sodium Hydroxide (25%) |
385 Dry Ton WW 110 Dry Ton W |
$1,110.26 |
$466,000 |
$123,000 |
$2,464,200 |
|
Sodium Hydroxide (50%) |
155 Dry Ton WW |
$712.84 |
$121,000 |
$0 |
$506,300 |
|
Sodium Hypochlorite |
572,750 Gal WW |
$3.49 |
$2,185,000 |
$0 |
$9,141,300 |
|
Ferric Chloride |
850 Dry Ton WW |
$1,164.00 |
$1,079,000 |
$0 |
$4,514,200 |
|
Ferrous Chloride |
150 Dry Ton WW |
$1,165.00 |
$191,000 |
$0 |
$799,100 |
|
|
|
TOTAL |
$3,621,000 |
$160,000 |
$15,818,600 |
1Wastewater Estimated Annual Cost includes nine percent (9%) for taxes. Estimated annual costs rounded up to the nearest thousand dollars and include short-load fees, if applicable.
The quantities listed above are estimates only. The actual quantities purchased may vary depending on treatment needs and will be purchased at the contracted rates. The not-to-exceed amount represents the total expense for both water and wastewater throughout the potential four-year contract term. The contracts allow for price changes if the contracts are extended. The not-to-exceed total includes a three percent (3%) annual escalation per year to account for potential cost of living increases.
Funds for future annual chemical purchases will be budgeted within the same accounts and will remain subject to City Council approval through the annual budget development process.
This action has no impact on the General Fund or any other unrestricted funds.