City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: FEBRUARY 22, 2022 FROM: PUBLIC WORKS DEPARTMENT WARDS: ALL
SUBJECT: CHANGE ORDER INCREASE WITH NORTHSTAR CHEMICAL TO PROVIDE CITRIC ACID IN THE AMOUNT OF $315,000 FOR A REVISED TOTAL OF $415,000 THROUGH JUNE 30, 2022; AND CHANGE ORDER INCREASE WITH KEMIRA WATER SOLUTIONS, INC., TO PROVIDE FERRIC CHLORIDE IN THE AMOUNT OF $300,000 FOR A REVISED TOTAL OF $750,000 THROUGH JUNE 30, 2022 ISSUES:
Approve an increase to the change order for Purchase Order No. 220647 in the amount of $315,000 for a revised total of $415,000 with Northstar Chemical to provide citric acid for the treatment of wastewater through June 30, 2022; and Approve an increase to the change order for Purchase Order No. 220548 in the amount of $300,000 for a revised total of $750,000 with Kemira Water Solutions, Inc., to provide ferric chloride for the treatment of wastewater through June 30, 2022.
RECOMMENDATIONS:
That the City Council:
Approve change order increase for Purchase Order No. 220647 with Northstar Chemical of Santa Fe Springs, California in the amount of $315,000 to provide citric acid for the treatment of wastewater revising the total from $100,000 to $415,000 through June 30, 2022; and Authorize the City Manager or his designee, to approve the change order increase to Northstar Chemical of Santa Fe Springs, California Purchase Order No. 220647 for a total cost not to exceed $415,000 respectively; and Approve change order increase for Purchase Order No. 220548 with Kemira Water Solutions, Inc., of Fontana, California in the amount of $300,000 to provide ferric chloride for the treatment of wastewater revising the total from $450,000 to $750,000 through June 30,2022; and Authorize the City Manager or his designee, to approve the change order increase to Kemira Water Solutions, Inc., of Fontana, California Purchase Order No. 220548 for a total cost not to exceed $750,000 respectively.
BACKGROUND:
The Public Works Department Wastewater Division is responsible for the collection and treatment of wastewater generated within the City of Riverside and the communities of Edgemont, Highgrove, Jurupa, and Rubidoux at the Riverside Water Quality Control Plant (RWQCP). To satisfy the United States Environmental Protection Agency’s (EPA) National Pollution Discharge Elimination System (NPDES) permit, wastewater must be treated to achieve regulatory water quality standards. The RWQCP treatment processes require various chemicals, including citric acid and ferric chloride, to achieve water quality objectives.
DISCUSSION:
Due to market volatility, temporary supply shortages, and a Consumer Price Index (CPI) increase of 6.2 percent over the last 12 months, has created an unexpected rise in unit costs for chemicals that have been budgeted during the current budget cycle for FY 2021/22. Staff has conducted a generally market analysis and show comparable price ranges when comparing current vendor pricing to other businesses who offer similar goods.
To prevent significant violations and have sufficient funds available for the remainder of the fiscal year, staff is formally requesting City Council to approve the requested change orders, which is necessary to continue to comply with federal, state, regional and local regulatory requirements as part of the water treatment process.
This change order request is in accordance with Resolution 23812 Section 404, Utilities Exceptions which states, “The Water, Electric and Sewer Utilities have a need for compatibility within their respective systems for uniform operation, maintenance and replacement, and this need can be met by procuring certain supplies, equipment, and materials supplies through Informal Procurement or Negotiated Procurement.
If it appears to the Manager to be in the best interest of overall economy and efficiency of the City to do so, and it is within existing budget appropriation, the following supplies, equipment, and materials are determined to be peculiar to the needs of the Water Utility, the Electric Utility, and the Sewer Utility and may be acquired by Informal Procurement or Negotiated Procurement, regardless of their estimated Procurement expenditure amounts, provided that the City's Board of Public Utilities or City Council shall have approved the proposed acquisition if required under the provisions of the City Charter, either by approval of the procurement contract or approval of annual purchase orders.” The Purchasing Manager concurs that the action to approve is in compliance with Purchasing Resolution 23812 Section 404.
STRATEGIC PLAN ALIGNMENT:
These items support Strategic Priority 4 – Environmental Stewardship and Goal 4.2 – Sustainably manage local water resources to maximize reliability and advance water reuse to ensure safe, reliable, and affordable water to our community.
These items align with each of the five Cross-Cutting Threads:
Community Trust – Conducting regular water treatment routines ensures wastewater discharges do not negatively impact the community and environment. The RWQCP requires chemicals to treat wastewater, such as citric acid and ferric chloride, to comply with federal, state, regional and local regulatory requirements.
Equity – These change orders support RWQCP efforts in protecting the public’s health and environment by ensuring wastewater treatment is performed efficiently in compliance with federal, state, regional and local regulatory requirements.
Fiscal Responsibility – These change orders support RWQCP efforts in minimizing inefficiencies and develop control methods to maximize reliability and ensure efficient wastewater treatment.
Innovation – These change orders exemplify a collaborative partnership between RWQCP and Northstar Chemical of Santa Fe Springs, California, and Kemira Water Solutions, Inc., of Fontana, California, to enhance operational reliability by achieving measurable improvements through proper wastewater treatment.
Sustainability & Resiliency – These change orders support the implementation of sustainability to treat wastewater that is generated within the City of Riverside and the communities of Edgemont, Highgrove, Jurupa, and Rubidoux at the Riverside Water Quality Control Plant.
FISCAL IMPACT:
The total fiscal impact of this action is $615,000. Sufficient funds are available in the Sewer Fund, Sewer Systems Treatment, Chemical Supplies account number 4125200-426600.
Prepared by: Gilbert Hernandez, Public Works Director
Certified as to
availability of funds: Edward Enriquez, Chief Financial Officer/Treasurer Approved by: Kris Martinez, Assistant City Manager
Approved as to form: Phaedra A. Norton, City Attorney
Change Order Increase for Chemicals ● Page 3