Resolution No.
STOCKTON CITY COUNCIL
RESOLUTION AUTHORIZING CONTRACT AMENDMENT NO. 2 TO USALCO, LLC FOR THE PURCHASE OF WASTEWATER TREATMENT POLYMER AND AN APPROPRIATION OF $920,000 FROM THE WASTEWATER UTILITY FUND BALANCE FISCAL YEAR 2021-22 BUDGET The Regional Wastewater Control Facility (RWCF) uses various polymers as part of the wastewater treatment process. Polymers are coagulants that thicken the solids in wastewater, making it easier to separate them. The thickened wastewater, called sludge, can then be further processed for discharge or trucked offsite for disposal; and On May 21, 2021, by Motion No. 2019-05-21-1115, Council authorized the City Manager to award and execute a five-year Contract with USALCO, LLC (USALCO) in the amount of $10,500,000 for the purchase of polymer for wastewater treatment; and On January 4, 2021, staff were notified of the sale of CalChem Enterprises to USALCO, LLC. On September 2, 2021, an administrative Contract Amendment No. 1 was approved to change the reference in the agreements and contracts from “CalChem Enterprises” to “USALCO, LLC”; and The contract allows for increases up to 3% for each succeeding year. The first increase of 2.97% was requested on May 19, 2021, increasing the cost from $0.438 per pound to $0.451 per pound beginning on July 1, 2021; and On December 8, 2021, USALCO informed staff that raw material costs to produce the polymer have increased significantly in the past year. USALCO has absorbed these cost increases but are unable to continue to do so; and The unit cost of the polymer, CED 1127, will be increased from $0.451 per pound to $0.626 per pound effective January 1, 2022; and The Fiscal Year (FY) 2021-22 expenditure budget does not include sufficient funds for this cost increase; and Appropriation from the fund balance is necessary to ensure adequate funds are available for purchase of polymer for wastewater treatment during FY 2021-22; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:
Contract Amendment No. 2 in the amount of $2,500,000 to USALCO, LLC, is approved, and the City Manager is authorized and directed to execute same, a copy of which is attached as Exhibit 1 and incorporated by reference.
The City Manager, or designee, is hereby authorized to amend the FY 2021-22 Annual Budget to appropriate $920,000 from the Wastewater Utility Fund Balance to the Wastewater Treatment Plant Operations, Chemical Purchases account.
The City Manager or designee is hereby authorized to take appropriate and necessary actions to carry out the purpose and intent of this Resolution.
PASSED, APPROVED, and ADOPTED March 1, 2022 .
KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:
ELIZA R. GARZA, CMC
City Clerk of the City of Stockton