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 215,000 Gallons of Sodium Hypochlorite 12.5% (Bleach) in Fiscal Year 2025 in an Amount Not to Exceed $694,450
Staffreport
COUNCIL PRIORITY
• Infrastructure
• Sustainability & Resiliency
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 won the bid for the East Bay region for supplying Sodium Hypochlorite (bleach) for Fiscal Year 2025.
RECOMMENDATIONS
Staff recommends City Council adopt a Resolution to approve and authorize the City Manager to execute a Non-Professional Services Agreement with Univar Solution USA LLC for the supply of 215,000 gallons of Sodium Hypochlorite 12.5% in fiscal year 2025 in an amount not to exceed $694,450.
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 $3.23 per gallon. The City will need to purchase 215,000 gallons, with a total amount not to exceed $694,450.
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 $3.23 in 2024. 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 as neighboring agencies.
Financial Impacts
Sufficient funds are included in the Fiscal Year 2024-2025 Enterprise Fund budget for Sodium Hypochlorite Supply:
• Bulk Chemicals, Account 593-51-002-6221: $900,400
This Council action will not impact fund balance because there are funds available in the FY25 adopted budget.
ATTACHMENTS
Attachment A: Resolution to Approve the Authorization of 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 215,000 Gallons of Sodium Hypochlorite 12.5% in Fiscal Year 2025 in an Amount not to Exceed $694,450
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:
Ramya Sankar, Management Analyst II, Water Pollution Control Division
Hayes Morehouse, Water Pollution Control Plant Manager