2014 2:00:00 PM

Monday, February 10, 2014 2:00 PM
City Council Chambers, Legislative Bldg, 745 Fourth St., Sparks

General Business: 6.1

Title: Consideration and possible approval of Bid # 13/14-014, for an initial one (1) year contract with the possibility of four (4), one (1) year extensions to Sierra Chemical Company for the amount of $585 per dry/ton to supply Sodium Bisulfite to the Truckee Meadows Water Reclamation Facility (TMWRF).

Petitioner/Presenter: Neil C. Krutz, P.E. – Deputy City Manager/Michael Drinkwater, P.E. – TMWRF Plant Manager / Todd Saxberg- TMWRF Operations Mgr.

Recommendation: Staff recommends that the Council approve a contract for Sierra Chemical Company to provide Sodium Bisulfite to TMWRF beginning on March 01, 2014 and expiring on February 28, 2015. Included in the bid documents are provisions for four (4) individual one(1) year renewals. Sierra Chemical company will supply TMWRF with Sodium Bisulfite at a price of $ 585 a dry/ton.

Financial Impact: There is no General Fund impact. There remains $819,580 in appropriations for Chemicals in the Fiscal Year 2013-2014 budget approved by Joint Coordinating Committee on March 1, 2013. Annual costs for Sodium Bisulfite are estimated at $234,000.00 based on 400 dry tons utilized annually. This expense will be charged to TMWRF, Fund 5605, Account 603350, Sodium Bisulfite, under Program 131505, TMWRF Operations. Following quarterly reconciliation of TMWRF’s operating expenses, affecting the Sanitary Sewer Operations fund (1630), 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 Attachment 1, Table 1.

Total Costs: $234,000.00

Fund: Joint Treatment Plant Account: 603350
Program: TMWRF Operations (131505)
Amount: $234,000.00 Budget Status: Budget Exists

Business Impact (Per NRS 237):
A Business Impact Statement is not required because this is not a rule.

Agenda Item Brief:

This is a contract beginning on March 1, 2014 and expiring on February 28, 2015, with an option to extend for four (4) additional twelve (12) month extensions. The last extension of the current contract, entered into on February 28 2009, expires February 14, 2014. Sodium Bisulfite was placed out for bid on December 24, 2013 and Sierra Chemical was the lowest responsive and responsible bidder. Based on an estimated annual usage of 400 tons, the annual cost for sodium bisulfite will be $234,000. This represents an annual savings of approximately $42,000 over the current price.

Background:

Sodium Bisulfite is used to dechlorinate, or neutralize, any residual chlorine in the final effluent that is discharged into Steamboat Creek. The TMWRF discharge permit requirement is zero milligrams per liter (mg/l) chlorine residual. The use of Sodium Bisulfite is necessary to meet this standard. Failure to meet this requirement would result in permit violation with potential fines.

Analysis:

If approved, the City of Sparks will enter into a contract with Sierra Chemical Company for the purchase of Sodium Bisulfite. Companies that provide Sodium Bisulfite calculate their pricing on a dry ton basis. Following chemical market review, TMWRF staff elected to structure the renewal contract for an initial one year period, securing set pricing, with the option of renewing up to four (4) one (1) year extensions, totaling five years and take the chemical out for a formal bid. Previous to this bid TMWRF was paying $690.11 per dry ton to Sierra Chemical Company. Based on 400 dry tons usage annually the new bid price of $585.00 per ton will result in approximately $ 42,000.00 in chemical savings annually. Solicitation for the Sodium Bisulfite contract, under Bid #13/14-014, was advertised on December 24, 2013 in the Reno Gazette Journal and known interested vendors were alerted to the availability to the bid package via the City of Sparks internet website. Three (3) bids were publicly opened on January 14, 2014 at 2:00 PM at Sparks City Hall. The 2 lowest bidders were tied and in accordance with the general conditions of the bid, the lowest bidder was established by a game of chance. A summary of those bids is provided in Attachment 1, Table 2.

Alternatives: 1. Council could direct the Manager to have staff provide other alternatives.

Recommended Motion: I move to approve that Council award Bid # 13/14-014, for Sodium Bisulfite, to Sierra Chemical Company.

Attached Files:

Attachment 1.pdf

Sierra Chemical Contract-Sodium Bisulfite.pdf

Previous Item

Next Item

Return To Meeting