Sparks City Council Meeting 8/27/2018 2:00:00 PM

    Monday, August 27, 2018 2:00 PM
    Council Chambers, Legislative Bldg, 745 4th St., Sparks, NV

General Business: 9.3

Title: Consideration, discussion and possible approval of a one (1) year contract (AC-5507)(Bid # 18/19-003), for with Univar USA, Inc. to supply Sodium Hydroxide to the Truckee Meadows Water Reclamation Facility (TMWRF) at a unit cost of $1.3414 per gallon (the estimated cost over the term of the contract, based on average consumption of Sodium Hydroxide, is approximately $402,000)
Petitioner/Presenter: John A. Martini, P.E., Community Services Director/Michael Drinkwater, P.E. – TMWRF Plant Manager
Recommendation: Staff recommends that the Council approve a contract with Univar USA, Inc. to provide Sodium Hydroxide to TMWRF through August, 2019.
Financial Impact: Account 5606 Program 131505 Account 603360
Total Costs: $402,000.00
Fund: Joint Treatment Plant    Account: 603360
Program: TMWRF Operations (131505)
Amount: $402,000.00    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 for the purchase of sodium hydroxide for use at the Truckee Meadows Water Reclamation Facility, beginning on 27 August 2018 and expiring on 26 August, 2019, with options for mutually agreeable extensions for additional 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.   Annual consumption of sodium hydroxide at TMWRF is approximately 300,000 gallons.



Analysis:

Solicitation for the Sodium Hydroxide under Bid #18/19-0003, was advertised on the City of Sparks web site and known interested vendors were alerted to the availability to the bid package in June 2018.  Bids were opened on July 11, 2018 by the City of Sparks Purchasing Department. Two bids were received, and Univar USA was the lowest responsive bidder.  A summary table of all bids received is attached to this staff report.  Based on current usage at TMWRF the annual cost for sodium hydroxide is estimated to be $402,000.

If approved, the City of Sparks will enter into a contract with Univar USA.  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 mutually agreeable one-year extensions.



Alternatives:
  1. Council could approve the bid award as presented by Staff
  2. Council could direct the Manager to provide other alternatives.


Recommended Motion:

 I move to approve the the contract with Univar USA, Inc. to supply Sodium Hydroxide to TMWRF at a unit cost of $1.3414 per gallon.



Attached Files:
     Bid Re-cap SUMMARY-Sodium Hydroxide- Bid 18-19-003.pdf
     Univar Contract-Sodium Hydroxide.pdf
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