200 S. Anaheim Blvd.
Suite #620
Anaheim, CA 92805
Tel: (714) 765-5110
Fax: (714) 765-5288
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
FINANCE DEPARTMENT
DATE: AUGUST 9, 2022
FROM: FINANCE DEPARTMENT
SUBJECT: ACCEPTANCE OF BID FOR THE PURCHASE OF LIQUID
ALUM FOR LENAIN WATER TREATMENT PLANT
ATTACHMENT (Y/N): NO ITEM # 08
RECOMMENDATION:
That the City Council, by Motion, accept the lowest responsive bid from Northstar Chemical, Inc., in the amount of $105,840 plus applicable taxes and a 20% contingency, for the purchase of liquid alum for use by Anaheim Public Utilities for a one-year period with up to four one-year optional renewals; and authorize the Purchasing Agent to exercise the renewal options, all in accordance with Bid #9585.
DISCUSSION:
Purchasing solicited bids from known suppliers and posted the bid on the City’s bid portal. Sealed bids were received by 2:00 p.m., July 12, 2022, from the following suppliers and were publicly opened immediately thereafter.
Bidders Bid Price
Northstar Chemical, Inc. $105,840.00
Sherwood, Oregon
Chemtrade Chemicals US LLC $124,380.90
Parsippany, New Jersey
The bid was based on an estimated annual quantity of liquid alum used in the water treatment process at the Lenain Water Treatment Plant. Liquid alum is a primary coagulant approved by the California Department of Public Health and used to treat water for compliance with Federal and State drinking water standards.
The bid was viewed by 11 potential bidders, with two submitting a bid response. Two other companies submitted a no-bid letter. Purchasing staff also reached out to other potential bidders to ask why they did not participate. Those that replied indicated they could not meet all of the City’s bid requirements.
Acceptance of Bid for the Purchase of Liquid Alum for Lenain Water Treatment Plant August 9, 2022
The initial term of the agreement will be for a one-year base period with up to four one- year optional renewals. During the term of each agreement, a mid-term price adjustment may be requested, starting with the base term. For each renewal period, any price increases will be negotiated but may not exceed the change in the Producer Price Index (PPI) for the preceding period, including the optional mid-term adjustment. However, if significant fluctuations in costs are experienced throughout the chemical industry which exceed the PPI limit, an equitable price adjustment may be negotiated if it is in the City's best interest.
The 20% contingency is recommended to provide the ability to address any unforeseen purchase requirements that may arise during the term of the agreement.
IMPACT ON BUDGET:
Sufficient funds are available in the Anaheim Public Utilities Fiscal Year 2022/23 Water Utility Fund budget. Funding for subsequent years will be subject to Council’s approval of budget appropriations.
Respectfully submitted, Concurred by,
Barrick L. Bartlett Dukku Lee
Purchasing Agent Public Utilities General Manager