City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-00608 3/19/2024 Consent Item 6.
Supplemental Contract: Chemical Purchases with Chemtrade Chemicals US, LLC File ID: 2024-00608
Location: Citywide
Recommendation: Pass a Motion authorizing the City Manager or the City Manager's designee to execute Supplemental Contract No. 1 to City Contract No. PRC002324 with Chemtrade Chemicals US, LLC for the purchase of aluminum sulfate, for an amount not-to exceed $150,000, bringing the contract’s total not-to-exceed amount to $750,000.
Contact: Andrew Costan, Administrative Analyst, (916) 808-6339, [email protected]; Deanne Neighbours, Interim Logistics Manager, (916) 808-3536; [email protected]; David Herrmann, 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. 16
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 aluminum sulfate. DOU has an ongoing need to maintain sufficient inventory of aluminum sulfate to ensure uninterrupted service to customers. The prices for these contracts were bid on behalf of DOU by the Bay Area Chemical Consortium (BACC).
Policy Considerations: This supplemental agreement exceeds the City Manager’s approval authority and requires approval by City Council.
Economic Impacts: None.
Environmental Considerations: The purchase and use of chemicals is an ongoing activity at the
File ID: 2024-00608 3/19/2024 Consent Item 6.
City’s water and wastewater plants. The use of these chemicals is regulated by State permit requirements. 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 as they facilitate the continued treatment and protection of the City’s drinking water.
Commission/Committee Action: Not Applicable.
Rationale for Recommendation: The City participates in an annual bid process for its chemical needs through the Bay Area Chemical Consortium (BACC). Chemtrade Chemicals US, LLC was the lowest responsive bidder for the purchase of aluminum sulfate. PRC002324 was executed for one year for an amount not to exceed $600,000.
Due to the winter storms and ongoing water treatment plant maintenance, additional aluminum sulfate will be required during the contract period. Supplemental Agreement No. 1 will increase the not-to-exceed amount by $150,000 bringing the contract’s total not-to-exceed amount to $750,000.
Financial Considerations: Supplemental Agreement No. 1 will increase the contract amount by $150,000, for a revised total not-to-exceed amount of $750,000. There is sufficient funding in the Fiscal Year 2023-24 Operating Budget (Fund 6005) to fund services through June 30, 2024.
There are no General Funds allocated or planned for this project.
Local Business Enterprise (LBE): The City’s LBE bid requirements do not apply because the City did not conduct the bidding process.
SUPPLEMENTAL CONTRACT
(Rev. 11-1-19)
Project Title and Job Number: ALUMINUM SULFATE Date: 2/13/24 Purchase Order #: Supplemental Contract No.: 1 The City of Sacramento ("City") and _Chemtrade Chemical US, LLC_("Contractor"), as parties to that certain Goods Agreement designated as Contract Number PRC002324_, including any and all prior supplemental contracts modifying the contract (the contract and all supplemental contracts are hereafter collectively referred to as the "Contract"), hereby supplement and modify the Contract as follows: 1. The Technical Specifications specified in Exhibit A of the Contract is amended as follows: No changes are proposed to the goods or the time of performance 2. In consideration of the additional and/or revised goods described in section 1, above, the maximum not-to-exceed amount that is specified in Exhibit B of the Contract for payment of Contractor's fees and expenses, is increased/decreased by _$150,000_, and the Contract’s maximum not-to-exceed amount is amended as follows: Agreement's original not-to-exceed amount: _$600,000Net change by previous supplemental contracts: _$0 Not-to-exceed amount prior to this supplemental contract: $600,000 Increase/decrease by this supplemental contract: $150,000 New not-to exceed amount including all supplemental contracts: $750,000 3. Contractor agrees that the amount of increase or decrease in the not-to-exceed amount specified in section 2, above, shall constitute full compensation for the additional and/or revised goods 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 additional and/or revised goods, including costs associated with any changes and/or delays in schedules or in the provision of additional and/or revised goods or other work by Contractor. 4. Contractor warrants and represents that the person or persons executing this supplemental contract on behalf of Contractor has or have been duly authorized by Contractor to sign this supplemental contract and bind Contractor to the terms hereof. 5. Except as specifically revised herein, all terms and conditions of the Contract shall remain in full force and effect, and Contractor shall provide all of the goods and perform all of the services, duties, obligations, and conditions required under the Contract, as supplemented and modified by this supplemental contract. [SIGNATURES ON FOLLOWING PAGE]