Sparks City Council Meeting 6/8/2015 2:00:00 PM

    Monday, June 8, 2015 2:00 PM
    Council Chambers, Legislative Bldg, 745 4th St., Sparks

General Business: 9.6

Title: Consideration and possible approval of Bid # 14/15-019, for an initial one (1) year contract with the possibility of four (4), one (1) year extensions to Sierra Chemical Company of Nevada, Inc. for the amount of $0.7970 per solution/gallon to supply Sodium Hydroxide 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
Recommendation: Staff recommends that the Council approve a contract with Sierra Chemical Company of Nevada, Inc. to provide Sodium Hydroxide to TMWRF through February 28, 2016. Included in the bid documents are provisions for four (4) individual one (1) year renewals. Sierra Chemical Company of Nevada, Inc. will supply TMWRF with Sodium Hydroxide at a price of $0.797 per gallon .
Financial Impact: There is no General Fund impact. There remains $2,550,373.81 in appropriations in Operations Service and Supplies Account Group for Fiscal Year 2014-2015, approved by Joint Coordinating Committee on April 2, 2014. Sodium Hydroxide use will not resume projected usage until the colder months in fiscal year 15-16 as currently planned. Annual costs for Sodium Hydroxide are estimated at $239,100.00 based on 300,000 gallons projected to be utilized annually. This expense will be charged to TMWRF, Fund 5605, Account 603360, Sodium Hydroxide, 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 quarter ending March 30, 2015, Fiscal Year 2014-2015, was 34.09% / 65.91% for the Cities of Sparks and Reno respectively and the approximate split is outlined in Attachment 1, Figure 1.
Total Costs: $239,100.00
Fund: Joint Treatment Plant    Account: 603360
Program: TMWRF Operations (131505)
Amount: $239,100.00    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 for the purchase of sodium hydroxide for use as the Truckee Meadows Water Reclamation Facility, beginning on June 15, 2015 and expiring on June 30, 2016, with an option to extend for four (4) additional twelve (12) month periods.



Background:

Sodium Hydroxide, also known as caustic soda, is used to increase alkalinity in processes operating within the Truckee Meadows Water Reclamation Facility (TMWRF). The increase of alkalinity in a biological process can provide the ideal environment for the biological community we have intended to cultivate.  Caustic soda is mainly for the oxidation of ammonia.  Ammonia can be more easily oxidized at a higher pH.  Sodium Hydroxide is also used to maintain the ideal alkalinity for the Nitrifying bacteria in the Nitrification Towers at TMWRF.   This is one of the components of our overall strategy implemented over the last few years to optimize and stabilize TMWRF Nitrogen performance.



Analysis:

If approved, the City of Sparks will enter into a contract with Sierra Chemical Company of Nevada, Inc.  Companies that provide Sodium Hydroxide calculate their pricing on a per gallons 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.

Solicitation for the Sodium Hydroxide contract, under Bid #14/15-019, was advertised on April 22nd, 2015 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.  Four (4) bids were publicly opened on May 7th, 2015 at 2:00 PM at Sparks City Hall.  A summary of those bids are outlined in Table 1, attached.  The estimated annual cost of this chemical and the shared costs between the Cities of Sparks and Reno are shown in Attachment 1, Table 2, attached.



Alternatives:

1. Council could direct the Manager to provide other alternatives.



Recommended Motion:

I move to award Bid # 14/15-019, for Sodium Hydroxide, to Sierra Chemical Company of Nevada, Inc.



Attached Files:
     Attachment 1.pdf
     Sierra Chemical Contract-Sodium Hydroxide.pdf
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