City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-00856 4/30/2024 Consent Item 21.
Supplemental Agreement: Chemical Purchase of Sodium Hypochlorite File ID: 2024-00856
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 PRC002038 with Olin Corporation for the purchase of Sodium Hypochlorite in the amount not-to-exceed $150,000, bringing the total not-to- exceed amount to $450,000.
Contact: Andrew Costan, Administrative Analyst, [email protected], (916) 808-6339; Deanne Neighbours, Interim Logistics Manager, [email protected], (916) 808- 3536; Charley Cunningham, Utilities Operation and Maintenance Manager, [email protected], (916) 808-5518; Pravani Vandeyar, Director, [email protected], (916) 808-3765; Department of Utilities Presenter: None.
Attachments:
1-Description/Analysis
2-Supplemental Agreement
Description/Analysis
Issue Detail: The Department of Utilities (DOU) operates wastewater 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 sodium hypochlorite 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: 2024-00856 4/30/2024 Consent Item 21.
City’s 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 purchase of supplies is a continuing administrative or maintenance activity and is not subject to CEQA. CEQA Guidelines Section 15060(c)(3).
Sustainability: The proposed contract supplement is consistent with the 2040 General Plan’s goals and policies related to public facilities and safety, including providing reliable wastewater service to the City of Sacramento: (PFS-3.1).
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). Olin Corporation Chemicals US, LLC was the lowest responsive bidder for the purchase of sodium hypochlorite. PRC002328 was executed for one year for an amount not to exceed $300,000.
Due to the winter storms, additional sodium hypochlorite was used which reduced the amount available for the contract period. As such, an increase in sodium hypochlorite will be required to meet the needs during the remaining 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 $450,000.
Financial Considerations: Supplemental Agreement No.1 will increase the not-to-exceed amount by $150,000, bringing the total not-to-exceed amount to $450,000.
Sufficient funding is available in the approved Fiscal Year (FY) 2023/24 DOU Operating Budget to fund this agreement through June 30, 2024.
There are no impacts to the General Fund for this Agreement.
Local Business Enterprise (LBE): The City’s LBE bid requirements do not apply because the City did not conduct the bidding process.
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