City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-00493 5/16/2023 Consent Item 8.
Supplemental Agreement: Univar Solutions USA, Inc.
File ID: 2023-000493
Location: Citywide
Recommendation: Pass a Motion authorizing the City Manager or the City Manager’s designee to execute Supplemental Agreement No. 1 to City Agreement PRC002011 with Univar Solutions USA Inc. for the continued supply of Sodium Hypochlorite in an amount not-to-exceed $200,000, bringing the agreement’s total not-to-exceed amount to $400,000.
Contact: Stacy Larkin, Administrative Analyst, (916) 808-6356, [email protected]; David Herrmann, Interim Division Manager, (916) 808-5652, [email protected]; Pravani Vandeyar, Director, (916) 808-3765, [email protected]; Department of Utilities Presenter: None.
Attachments:
1-Description/Analysis
2-Supplemental Agreement No. 1
Additional Description/Analysis
Issue Detail: The Department of Utilities (DOU) operates two water treatment plants and various facilities for wastewater treatment. As part of the treatment process, multiple chemicals are used, including Sodium Hypochlorite. DOU has an ongoing need to maintain a sufficient inventory of these chemicals to ensure uninterrupted service to its customers.
Usage of this chemical in Fiscal Year (FY) 2022/23 has surpassed projections. There is not enough funding left in the not-to-exceed amount to fund supply through the end of the contract term. This supplemental agreement adds the additional funding needed to continue supply through June 30, 2023.
Policy Considerations: This supplemental agreement exceeds the City Manager’s approval authority and requires approval by City Council.
File ID: 2023-00493 5/16/2023 Consent Item 8.
Economic Impacts: None.
Environmental Considerations:
California Environmental Quality Act (CEQA): The Community Development Department, Environmental Services Manager has determined that the proposed activity is not a project pursuant to the California Environmental Quality Act (CEQA). CEQA Guidelines Section 15378 (b). The activity is a continuing administrative or maintenance activity, such as the purchase of supplies, and is not subject to CEQA. CEQA Guidelines Section 15060(c)(3).
Sustainability: Chemicals purchased under these contracts comply with Section 8 of the City’s Sustainability Master Plan to continue to protect the City’s sources of water.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: Staff recommends approval of Supplemental Agreement No. 1 to City Agreement PRC002011 to allow the continued supply of Sodium Hypochlorite through June 30, 2023.
Financial Considerations: Supplemental Agreement No. 2 will increase the contract amount by $200,000, for a revised total not-to-exceed amount of $400,000. Sufficient funding is available in the FY2022/23 DOU Operating budget (Water Fund 6005) for services through June 30, 2023. Funding for future fiscal years is subject to funding availability in the adopted budget for the applicable fiscal year.
There are no General Funds planned or allocated for this project.
Local Business Enterprise (LBE): Univar Solutions USA Inc. is not an LBE. The minimum LBE participation requirement is waived for the City’s use of cooperative purchase agreements that have been competitively bid, evaluated, and awarded by other governmental agencies that may or may not have similar LBE programs. The use of cooperative purchase agreements saves time and leverages the purchasing power of multiple agencies to obtain competitive prices.
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SUPPLEMENTAL CONTRACT
Project Title and Job Number: SODIUM HYPOCHLORITE Date: April 28, 2023 Purchase Order #: Contract Supplement No.: 01
The Ci ty of Sacramento (“City”) and Univar Solutions USA Inc. (“Contractor”), as parties to that certain Goods Agreement designated as Contract Number PRC002011, including any and all prior supplemental contracts modifying the contract (the contract and all supplemental contract are hereafter collectively referred to as the “ Contract”), hereby supplement and modify the Contract as follows:
1. The Technical Specifications specified in Exhibit A are not changed. The usage of this chemical has exceeded projections.
This supplemental is to add funding to allow supply to continue through June 30, 2023.
2. In consideration of the additional and/or revised services described in section 1, above, the maximum not-to-exceed amount that is specified in Exhibit B of the Agreement for payment of Contractor’s fees and expenses, is increased by $200,000, and the Agreement’s maximum not-to-exceed amount is amended as follows:
Agreement’s original not-to-exceed amount: _$200,000_
Net change by previous supplemental agreements: __$0__ Not-to-exceed amount prior to this supplemental agreement: _$200,000_ Increase by this supplemental agreement: _$200,000_
New not-to-exceed amount including all supplemental agreements: _$400,000_
3. 4. Contractor agrees that the compensation specified in section 2 above, shall constitute full compensation for the additional and/or revised services specified in section 1, above, and shall fully compensate Contractor for any and all direct and indirect costs that may be incurred by Contractor in connection with such additio nal and/or revised services, including costs associated with any changes and/or delays in work schedules or in the performance of other services or work by Contractor.
5. Contractor warrants and represents that the person or persons executing this contract s upplement on behalf of Contractor has or have been duly authorized by Contractor to sign this contract supplement and bind Contractor to the terms hereof.
6. Except as specifically revised herein, all terms and conditions of the Contract shall remain in full force and effect, and Contractor shall perform all of the services, duties, obligations and conditions required under the Contract, as supplemented and modified by this supplemental contract.
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