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ADOPT A RESOLUTION AUTHORIZING CONTRACT AMENDMENT NO. 4 WITH SNF POLYDYNE, INC. FOR THE PURCHASE OF WASTEWATER TREATMENT POLYMER
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve findings pursuant to Stockton Municipal Code Section 3.68.070 in support of an exception to the competitive bidding process.
2. Authorize the City Manager to execute a two (2) year contract extension with SNF Polydyne, Inc. for a not-to-exceed amount of $6,386,500.
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
On May 12, 2020, the City Council authorized a five (5) year contract with SNF Polydyne, Inc. (Polydyne) by Motion No. 2020-05-12-1107 for the purchase of two polymers for the Municipal Utilities Department (MUD) Wastewater Operations Division. The total price for the five-year contract was $1,650,000. Subsequent Amendments No. 1 through No. 3 approved unit cost changes and added a new polymer product for use with a newly installed centrifuge as part of the RWCF Plant Modifications Project. The contract total price remains at $1,650,000.
If approved by Council, this action will authorize Amendment No. 4 to the contract with SNF Polydyne, Inc. extending it for two additional years through June 30, 2027, and increasing the not-to-exceed amount to $6,386,500.
DISCUSSION
Background
The Regional Wastewater Control Facility (RWCF) uses various polymer chemicals as coagulants that thicken solids in wastewater to make it easier to separate and remove during the treatment process. The type, quantity, and dosing rate of polymer used in the wastewater treatment process is determined by the characteristics of the type of wastewater being treated. A product that works for one treatment plant may not work for another due to the varying nature of wastewater and the need to meet specific treatment criteria.
On May 12, 2020, the Council authorized a five (5) year contract with SNF Polydyne, Inc. (Polydyne) by Motion No. 2020-05-12-1107 for the purchase of two polymers for the Municipal Utilities Department’s (MUD’s) Wastewater Operations Division. The total price for the five-year contract was $1,650,000. The contract is set to expire on June 30, 2025. Amendments No. 1 and 2 approved unit cost changes in 2022 and 2023. In December 2023, Contract Amendment No. 3 was executed to add the polymer for use with the new centrifuge to the contract at a cost of $1.850 per pound. The contract not-to-exceed price remained at $1,650,000.
Present Situation
In September 2023, the Regional Wastewater Control Facility (RWCF) Plant Modifications Project began testing various polymers for use at the new centrifuge dewatering area. Preliminary testing determined that the Polydyne WE-2398 product would work with the new system and the type of wastewater treated at the RWCF to improve dewatering performance. Additional product testing confirmed the preliminary results.
Staff recommends that the City Council approve a resolution authorizing Contract Amendment No. 4 with SNF Polydyne, Inc. to extend the contract for two additional years through June 30, 2027, and increase the not-to-exceed amount to $6,386,500. A summary of the pricing is below
|
Polymer |
Price $/lb |
Estimated* Annual Use, Tons |
Total |
|
NW-127 (BFP) |
$0.227 |
455 |
$1,655,500.00 |
|
WE-906 (GBT) |
$1.318 |
20 |
$273,700.00 |
|
WE-2398 (Centrifuge) |
$1.850 |
300 |
$4,457,300.00 |
|
Total |
$6,386,500.00 |
Note: contract approved increases are included in the total amount shown.
Findings
Pursuant to Stockton Municipal Code Section 3.68.070, Council may approve findings that support an exception to the competitive bidding process. Proposed findings to support this purchase are:
1. All wastewater streams are unique and require performance testing to determine the specific product that will achieve desired treatment results.
2. Performance-based testing is a lengthy process to allow full evaluation of product viability for long-term use.
3. Performance-based testing was performed as part of the RWCF Plant Modifications Project, resulting in a specific polymer product recommendation for use with the newly constructed centrifuge dewatering system.
4. SNF Polydyne has provided consistent product and service to the City throughout the contract period.
5. It is in the City’s best interest to extend the current contract for an additional two (2) years while construction of the RWCF Plant Modifications project is completed and all processes are online and operating as designed.
FINANCIAL SUMMARY
There is sufficient budget in Fiscal Year (FY) 2023-24. Future annual purchases will be budgeted in the same account and be presented to the Council for approval during the annual budget process.
There is no impact to the General Fund, or any other restricted fund, as a result of taking the recommended action.