PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #9.G
Meeting Date: June 4, 2024
TITLE:
Contract Amendment #3 with Brenntag Pacific for Supply of Sodium Bisulfite RECOMMENDATION:
Adopt a Resolution authorizing the City Manager to execute Amendment #3 to the existing Professional Services Agreement with Brenntag Pacific, Inc. to supply sodium bisulfite in an amount not to exceed $58,968 for Fiscal Year 2025 and appropriating related budget adjustments.
DISCUSSION:
The City of Pismo Beach’s Wastewater Treatment Plant uses sodium bisulfite during the treatment process to dechlorinate wastewater effluent prior to being discharged to the ocean. In June of 2022 through a competitive bid process, the City entered into a contract with Brenntag Pacific, Inc. (Brenntag) for one year with three options to extend the agreement for an additional one-year period.
The initial contract was executed under the City Manager’s authority on June 15, 2022 for $1.7496 per gallon, which was estimated at that time to not-to-exceed an amount of $39,900. Due to storm activity in January and March of 2023, as well as other unforeseen circumstances, that not-to-exceed amount was reached prior to the end of the fiscal year.
On March 21, 2023, the Council authorized Amendment #1, increasing the not-to-exceed amount by $19,100, bringing the total FY 2023 contract amount to $59,000. On June 6, 2023, the Council authorized Amendment #2 for the supply of sodium bisulfite for FY 2024 for $1.8792 per gallon, not to exceed $56,376.
Staff has requested a quote from Brenntag to continue to provide sodium bisulfite for FY 2025. The quote is for $1.9656 per gallon, not to exceed $58,968 bringing the total contract cost for FY 2023 through FY 2025 to $174,344.
Conclusion and Recommendation
Staff recommends the Council adopt a Resolution (Attachment 1) authorizing the City Manager to execute Amendment #3 (Attachment 1.A) to the existing Professional Services Agreement with Brenntag to supply sodium bisulfite in the amount not to exceed $58,968 in FY 2025.
FISCAL IMPACT:
The fiscal impact of approving the attached Resolution is $58,968 in the Wastewater Enterprise Fund. The FY 2025 budget includes $57,500 in the Wastewater Enterprise Fund de-chlorination account for the purchase of sodium bisulfite. The following table lists the budgeted amount, proposed contract costs, and budget shortfall.
Council Agenda 6-4-2024 9.G-1
FY 2025 Wastewater Enterprise Fund De-Chlorination Budget $57,500 Proposed Brenntag Contract Costs $58,968
FY 2025 Budget Shortfall $(1,468)
Staff recommends appropriating $1,500 in FY 2025 in the Wastewater Enterprise Fund de-chlorination account, supported by the Wastewater Enterprise Fund net position (available fund balance).
ATTACHMENTS:
1. Resolution
1.A Exhibit A to Resolution: Amendment #3
Prepared by:
Erin Olsen, Senior Management Analyst
Submitted by: Benjamin A. Fine, P.E., Director of Public Works/City Engineer City Manager Approval:
Council Agenda 6-4-2024 9.G-2
RESOLUTION NO. R-2024-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT #3
TO THE EXISTING PROFESSIONAL SERVICES AGREEMENT WITH BRENNTAG PACIFIC, INC. TO SUPPLY SODIUM BISULFITE IN AN AMOUNT NOT TO EXCEED $58,968 FOR FISCAL YEAR 2025 AND APPROPRIATING RELATED BUDGET
ADJUSTMENTS
WHEREAS, the City of Pismo Beach’s Wastewater Treatment Plant uses sodium bisulfite during the treatment process to dechlorinate wastewater effluent prior to being discharged to the ocean; and
WHEREAS, in June of 2022 through a competitive bid process, the City entered into a contract with Brenntag Pacific, Inc. (Brenntag) under the City Manager’s authority for one year with three options to extend the agreement for an additional one-year period; and WHEREAS, on March 21, 2023, the Council authorized Amendment #1 increasing the Fiscal Year (FY) 2023 not to exceed cost, and on June 6, 2023, the Council authorized Amendment #2 for the supply of sodium bisulfite in FY 2024; and WHEREAS, the current quote for FY 2025 is $1.9656 per gallon, not to exceed $58,968 bringing the total contract cost for FY 2023 through FY 2025 to $174,344.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby authorizes the City Manager to execute Amendment #3 (Exhibit A) to the existing Professional Services Agreement with Brenntag Pacific, Inc. to supply sodium bisulfite in an amount not to exceed $58,968 for FY 2025.
BE IT FURTHER RESOLVED that the that the City Council of the City of Pismo Beach hereby appropriates $1,500 in the Wastewater Enterprise Fund de-chlorination account in FY 2025, supported by the Wastewater Enterprise Fund net position (available fund balance), which will provide the additional budget needed to acquire sodium bisulfite.
UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 4th day of June 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Council Agenda 6-4-2024 9.G-3
Attachment 1
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Pismo Beach, California, on _______________________. ________________________
Erica Inderlied, City Clerk
Council Agenda 6-4-2024 9.G-4
Attachment 1
AMENDMENT # 3
to the
JUNE 15, 2022 AGREEMENT BETWEEN THE CITY OF PISMO BEACH AND BRENNTAG PACIFIC, INC.
Pursuant to the June 15, 2022 Agreement for Professional Services between the City of Pismo Beach, hereinafter referred to as “City,” and Brenntag Pacific, Inc., hereinafter referred to as “Vendor,” City and Vendor hereby agree as follows:
1.Additional services shall be performed as set forth in the proposal dated May 7, 2024, which is attached hereto and by this reference made a part hereof.
2.Compensation for and timing of the additional services shall be as set forth in the referenced proposal. Compensation for the additional services shall not exceed the amount of $1.9656 per gallon, not to exceed fifty eight thousand nine hundred sixty-eight dollars ($58,968 ), without prior written approval of the City.
3.The revised fee under the June 15, 2022 contract, plus addendum 1-3, is one hundred seventy-four thousand three hundred forty-four dollars ($174,344).
4.The term end date of the agreement is hereby revised to June 30, 2025.
5.All other provisions of the subject agreement between City and Vendor shall remain in full force and effect.
CITY:
City of Pismo Beach, a Municipal Corporation
Signed:
Name: Benjamin A. Fine, P.E.
Title: Director of Public Works/City Engineer
Dated: ________________________________
Signed:
Name: Jorge E. Garcia
Title: City Manager
Dated: ________________________________
ATTEST:
Signed:
Name: Erica Inderlied
Title: City Clerk
APPROVED AS TO FORM:
Signed:
Name: David M. Fleishman
Title: City Attorney
VENDOR:
Brenntag Pacific, Inc.
Signed:
Name: ________________________________
Title: _________________________________
Dated: ________________________________
Address for giving notice:
(if changed from prior agreement)
______________________________________
______________________________________
Email address for official communications:
(if changed from prior agreement)
______________________________________
Vendor Representative:
(if changed from prior agreement)
Name/Title: ____________________________
Attachment: Cost Proposal
Council Agenda 6-4-2024 9.G-5
Attachment 1.A
Price Extension
175 N Hughes Ave. Fresno, CA 93706
Robbie Bishop – Account Manager
Cust. Service # 800-350-4150 , Fax # 559-485-0605
Cell # 559-905-4211 Hm. Office # 661-387-0285
To: City of Pismo Beach
Wastewater Treatment Plant
Attn: Paula Reitsma
From: Robbie Bishop
Date: 5.7.24 2024/2025 Effective 7.1.24
Product Item Number Quantity Price
Sodium Bisulfite 25% 500 gl. $1.74 a gal. to $1.82 a gal.
Small Bulk.
Pricing is delivered to Pismo Beach, CA.
Confirming we will adjust pricing by .08 a gal. and hold for 12 months. From 7.1.24 to
7.30.25. All other terms and conditions remain the same for this price extension.
California Locations: South Gate, CA – Santa Fe Springs, CA – San Diego, CA – Fresno, CA – Richmond, CA - Imperial, CA.
Council Agenda 6-4-2024 9.G-6
Attachment 1.A