City Council Agenda Report
Meeting Date: July 1, 2025
From: Todd Dusenberry, General Manager of Public Utilities Department: Public Utilities
Submitted by: Adriana Ramos, Senior Management Analyst
Subject
Services Agreement with Nalco Company LLC
Recommendation
A. Approve and authorize the City Administrator to execute a Service Agreement with Nalco Company LLC, in substantially the same form as submitted, to provide chemical water treatment services for a total amount not to exceed $913,408.80, for a three-year term; and B. Authorize a contingency amount of fifteen percent (15%) or $137,011.32 in the event of any price adjustments or other market factors, and grant authority to the City Administrator to approve and execute amendments up to the contingency amount, if necessary.
Background
The Malburg Generating Station (MGS) requires chemical water treatment services that include chemical supply, chemical program oversight, and training for staff. MGS utilizes recycled treated water as its primary source of raw water for all operational processes. The proper application of chemical treatments maximizes unit efficiency and availability by minimizing scale, corrosion, fouling, and microbiological growth, which can result in decreased efficiency in power plant systems and components.
The City has engaged Nalco Company LLC (Nalco) for the procurement of Chemical Water Treatment Services. On June 21, 2022, the City Council approved a three-year Services Agreement with Nalco for chemical water treatment services. The current agreement is set to expire on June 30, 2025. As per Vernon Municipal Code (VMC) Section 3.32.080, on April 17, 2025, staff issued a request for Proposals (RFP) to seek proposals from qualified firms to provide chemical water treatment Services for MGS. The RFP was advertised on the City’s Planet Bids platform. The scope of services encompasses supplying chemical products, developing a chemical program, and training City personnel on the implementation and upkeep of the water treatment systems.
Proposal packages were received from three firms by the May 5, 2025 deadline. A qualified panel thoroughly examined the proposals based on qualifications (40%), cost (30%), references (20%), and responsiveness to the RFP (10%). Based on the evaluation process, the proposal submitted by Nalco demonstrated a combination of expertise, understanding, experience, and a comprehensive approach that was best suited to fulfill the scope of services outlined in the RFP.
The proposal submitted by Nalco ranked the highest score across the panel and was, therefore, deemed most qualified. Nalco specializes in solutions for water and process management, and it is the world's largest manufacturer and marketer of specialty water treatment chemicals.
Staff recommends that the City Council approve a Services Agreement with Nalco for chemical water treatment services for a total amount not to exceed $913,408.80, which includes estimated sales taxes of $86,794.50. Additionally, staff recommends a contingency amount of fifteen percent (15%) or $137,011.32, to cover any price adjustments or market changes, for a combined total not to exceed $1,050,420.12. Pursuant to VMC Section 3.32.030(A), City Council approval is required for the proposed agreement, as the total value of the contract exceeds $100,000.
The proposed Services Agreement has been reviewed and approved as to form by the City Attorney’s Office.
Fiscal Impact
The fiscal impact is not-to-exceed $1,050,420.12. Sufficient funds are available in the Electric Fund, Malburg Generating Station, Chemicals, Account No. 055-050-586-520235 for FY 2025- 26, and will be budgeted in subsequent years.
Attachments
1. Services Agreement with Nalco Company LLC