AGENDA REPORT
Meeting Date: January 24, 2023
Item Number:
To: Honorable Mayor & City Council
From: Robert Welch, P.E. Utilities General Manager
Vince Damasse, Water Resource and Operations Manager
Melissa Gomez, Senior Management Analyst
Subject: A CHANGE PURCHASE ORDER TO PACIFIC STAR CHEMICAL, LLC IN THE AMOUNT OF $70,000 FOR A TOTAL NOT-TO- EXCEED AMOUNT OF $120,000 FOR THE PURCHASE OF WATER
TREATMENT PLANT CHEMICALS
Attachments: None
RECOMMENDATION
Staff recommends City Council move to approve a change purchase order in the amount of $70,000 for a total not to exceed amount of $120,000 to Pacific Star Chemical, LLC. for the purchase of water treatment plant chemicals.
INTRODUCTION
The City of Beverly Hills owns and operates the Foothill Water Treatment Plant (WTP), requiring the purchase of chemicals used in water treatment before delivery to its customers. The City holds purchase orders with various chemical vendors, which supply and deliver the chemicals to the WTP. Every year, bids are solicited to ensure the City abides by the purchasing code and guarantees the best prices in the market.
DISCUSSION
Before the start of Fiscal Year 2022/23, the City solicited informal bids for various chemicals. As a result of this solicitation, Pacific Star Chemical, LLC was issued a purchase order from the City for $50,000 for the purchase of various chemicals. On November 1, 2022, staff released Bid 23-250-22 for the supply and delivery of various chemicals for the WTP, as noted in Table 1 below. The bid closed on November 22, 2022. Bids received in response to this solicitation were evaluated based on the lowest responsible bidder.
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Meeting Date: January 24, 2023
Pacific Star Chemical was again the lowest bidder for Sodium Hydroxide, 50%, Sulfuric Acid, 93%, and Sodium Bisulfite, 38%. Therefore, the City would like to award an additional $70,000 to Pacific Star Chemical, bringing the total to $120,000 for the remainder of the Fiscal Year. A separate item is being brought before City Council on January 24, 2023, for a change purchase order to JCI Jones Chemicals for the purchase of Sodium Hypochlorite, 12.5%. The remaining chemicals, which were not awarded (for the reasons indicated in the table below), will be rebid in the near future.
Table 1: Bid Results
Description Award to
Hydrofluorosilic Acid, 23%-25% No bid awarded- Received only one bid and the price was high.
Sodium Hydroxide, 50% Pacific Star Chemical
Sulfuric Acid, 93% Pacific Star Chemical
Sodium Hypochlorite, 12.5% JCI Jones Chemicals, Inc.
Sodium Bisulfite, 38% Pacific Star Chemical
Ferric Sulfate, 60% No bid awarded- No bids received.
Liquid Ammonium Sulfate, 10% No bid awarded- Lowest bidder retracted their original bid. Decided to
rebid for full transparency.
FISCAL IMPACT
Funds are available and budgeted for in the Water Enterprise Fund.
Shana Epstein, Director of Public Works
Approved By