Methanol is used at TMWRF in the denitrification reactor, the final step in the removal of nitrogen from the wastewater.  The current contract with Thatcher chemical is expiring and is not able to be extended.  Methanol is purchased based on the Argus/JJA Fob Truck/Rail commodity price plus mark-up.  The commodity price varies monthly, causing the cost to TMWRF to vary.  Over the last 2 years the unit price of methanol has varied between $1.48 and $1.89 per gallon.  

If approved, the City of Sparks would be directly purchasing methanol from Thatcher Chemical Company utilizing the contract offered by the National Intergovernmental Purchasing Alliance (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 water treatment chemicals, including methanol.  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. Based on current plant usage, the estimated annual cost for methanol is $1,900,000.

1. The City Council can approve the purchase as outlined by staff.
2. The City Council can direct the Manager to have staff competitively bid the purchase.

I move to approve the purchase of methanol from Thatcher Chemical Company at the mark-up rate of $0.6382/gallon, using the joinder provision of the City of Las Vegas/National IPA contract #150063-SK-A, with an estimated annual cost of $1,900,000.