Title
Adopt a Resolution to Approve and Authorize the City Manager to Execute a Non-Professional Services Agreement with Univar Solutions USA LLC to Supply the City’s Water Pollution Control Plant with up to 164,000 Gallons of Sodium Hypochlorite, commonly known as bleach, in FY 2027 in an amount not to exceed $630,000
Staffreport
COUNCIL PRIORITY
• Infrastructure
SUMMARY
Sodium Hypochlorite is a chemical required in the wastewater treatment process. City of San Leandro is part of the Bay Area Chemical Consortium, an informal cooperative that seeks competitive bids for chemical contracts for public agencies. Univar Solutions USA LLC was the lowest bidder for the East Bay region for supplying Sodium Hypochlorite for FY 2027.
RECOMMENDATIONS
Staff recommend City Council adopt a Resolution to approve and authorize the City Manager to execute a Non-Professional Services Agreement with Univar Solutions USA LLC for the supply of up to 164,000 gallons of Sodium Hypochlorite in FY 2027 in an amount not to exceed $630,000.
BACKGROUND
The City’s Water Pollution Control Plant uses sodium hypochlorite as a disinfecting reagent as the final step in the wastewater treatment process prior to the water leaving the facility. Disinfection with sodium hypochlorite is a requirement set forth by the City’s National Pollutant Discharge Elimination System (NPDES) permit. The City participates in the Bay Area Chemical Consortium (BACC), which annually runs a competitive bid process for common bulk chemicals used in water and wastewater treatment processes.
Analysis
During this year’s bid for sodium hypochlorite, the lowest bidder for the East Bay region was Univar Solutions USA LLC with a bid of $3.47 per gallon. The City will need to purchase up to 164,000 gallons, with a total amount not to exceed $630,000. The quantity needed depends largely on the quantity of precipitation, with more needed in wet years than dry years.
The BACC competitive bidding process allows water and wastewater utilities throughout the Bay Area to collectively solicit bids for commonly used chemicals. This provides competitive and consistent pricing and reduces staff time to run a separate bid.
The cost of sodium hypochlorite has risen from $0.71 per gallon in 2021 to $3.47 in 2026. The BACC process provides assurance that this increase is part of a broader price escalation in the chemical market and that San Leandro is paying comparable rates to neighboring agencies.
Financial Impacts
Sufficient funds are planned for and included in the FY 2027 Enterprise Fund budget for Sodium Hypochlorite Supply:
• Bulk Chemicals, Account 593-51-002-6221: $991,100
This Council action will not impact fund balance because there are funds available in the FY 2027 budget.
ATTACHMENTS
Attachment A: Draft Resolution to Approve and Authorize the City Manager to Execute a Non-Professional Services Agreement with Univar Solutions USA LLC to Supply the City’s Water Pollution Control Plant With 164,000 Gallons of Sodium Hypochlorite in FY 2027 in an Amount not to Exceed $630,000
Attachment B: NPSA Univar Sodium Hypochlorite Scope of Work
Attachment C: NPSA Univar Sodium Hypochlorite Compensation Schedule
Attachment D: BACC Bid Document for Sodium Hypochlorite
o D1: Univar Bid Document for Sodium Hypochlorite
o D2: BACC Bid Award Letter for Sodium Hypochlorite
PREPARED BY:
Hayes Morehouse, Water Pollution Control Plant Manager