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Sparks City Council Meeting 10/28/2013 2:00:00 PM
Monday, October 28, 2013 2:00 PMCity Council Chambers, Legislative Building, 745 4th Street, Sparks, Nevada
Consent Items: 5.8
Title: Consideration and possible approval to join existing National IPA (NIPA) contract for an initial one year contract with the possibility of four, one year extensions to Thatcher Company of California to supply Aluminum Sulfate (Alum) to the Truckee Meadows Water Reclamation Facility (TMWRF) at a cost of $368.00 per dry ton.
Petitioner/Presenter: Neil C. Krutz, P.E. – Deputy City Manager/Michael Drinkwater, P.E. – TMWRF Plant Manager / Todd Saxberg- TMWRF Operations Manager
Recommendation: Staff recommends that the Council approve joining NIPA contract number NIPA4199 for Thatcher Company of California beginning on November 1, 2013 and expires on October 31, 2014 with the possiblity of 4 one year renewals for Aluminum Sulfate for TMWRF at a delivered unit price of $368.00 per dry ton.
Financial Impact: There is no General Fund impact. There remains $2,072,859.83 in appropriations for Chemicals in the Fiscal Year 2013-2014 budget approved by Joint Coordinating Committee on March 1, 2013. Annual costs for Aluminum Sulfate are estimated at $671,600.00, based on an annual estimated consumption of 1,825 dry tons. This expense will be charged to TMWRF, Fund 5605, Account 603300, Alum, under Program 131505, TMWRF Operations. Following quarterly reconciliation of TMWRF’s operating expenses, affecting the Sanitary Sewer Operations fund (1630), the City of Sparks is quantifying reimbursement from the City of Reno based on actual flow splits provided by ADS Environmental. The flow split for the Fiscal Year ending June 30, 2013, was 32.39% / 67.61% for the Cities of Sparks and Reno respectively and the approximate split is outlined in Table 1. (Attached).
Total Costs: $671,600.00
Total Costs: $671,600.00|
Fund: Joint Treatment Plant Account: 603300 Program: TMWRF Operations (131505) Amount: $671,600.00 Budget Status: Budget Exists |
Business Impact (Per NRS 237):
A Business Impact Statement is not required because this is not a rule.
A Business Impact Statement is not required because this is not a rule.
Agenda Item Brief: The initial term of this contract would begin November 1, 2013 and expire October 31, 2014, with an option to extend for four (4) additional twelve (12) month extensions. The last extension of the current contract, entered into on November 17, 2008, expires November 30, 2013. The joinder bid from NIPA saves TMWRF $17.00 per dry ton of alum delivered over the current contract. Annual savings is estimated at $31,000.00.
Background: Aluminum Sulfate is primarily used as a coagulant to settle out fine particles in the spent backwash water that comes from the gravity filters backwash cycle. Aluminum Sulfate is now additionally used at TMWRF to precipitate phosphorous from the Phosphorous Rich Supernatant (PRS) process. This process reduces phosphorous loading from the dewatering process and returns it to digesters for biosolids disposal.
Analysis: If approved, the City of Sparks would be utilizing the contract offered by the National IPA (NIPA) which is a group purchasing organization similar to others used in the purchase of goods and services in the City of Sparks. In this case, NIPA is marketing a contract originally bid and awarded by the City of Las Vegas for the provision of various treatment chemicals including the one under consideration. This practice allows the City to purchase the chemicals directly from the supplier without the requirement to go to formal bid, as allowed by NRS 332.115 and NRS 332.195. The City is enjoying an economy of scale for this product as the pricing under the national contract is below the cost currently paid by TMWRF under its expiring contract, saving TMWRF $17.00 per dry ton on the current price of $385/dry ton. This equates to approximately $31,000.00 annually for the life of this new contract.
Alternatives: 1. Council could direct staff to comptetitively bid the contract for alum.
Recommended Motion: I move to approve that Council joining NIPA contract number NIPA4199 for Thatcher Company of California beginning on November 1, 2013 and expires on October 31, 2014 with the possiblity of 4 one year renewals for Aluminum Sulfate for TMWRF at a delivered unit price of $368.00 per dry ton.
Attached Files:
Thatcher Contract - Aluminum Sulfate.pdf TABLE 1.pdf
