Sparks City Council Meeting 8/12/2019 2:00:00 PM

    Monday, August 12, 2019 2:00 PM
    Council Chambers, Legislative Bldg, 745 4th Street, Sparks, NV

General Business: 9.3

Title: Consideration, discussion and possible approval to join an existing National Intergovernmental Purchasing Association (NIPA) contract (AC-5598) with Thatcher Company of Nevada to supply Sodium Hypochlorite (bleach) to the Truckee Meadows Water Reclamation Facility (TMWRF) at a cost of $0.92 per gallon. The estimated total annual cost is $620,000 with Sparks's annual share estimated to be $198,000.
Petitioner/Presenter: John A. Martini, P.E. , Assistant City Manager/Michael Drinkwater, P.E., TMWRF Plant Manager
Recommendation: Staff recommends the City Council approve the request to join the NIPA contract for the purchase of Bleach
Financial Impact: No general fund impact. The City's adopted budget for FY20 includes, in fund 5605 (TMWRF), includes $620,000 for the purchase of bleach.
Total Costs: $198,000.00
Fund: Joint Treatment Plant    Account: 603355
Program: TMWRF Operations (131505)
Amount: $198,000.00    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:

Staff is recommending the City Council approve the request to join onto an existing contract between Thatcher Chemical Company of Nevada and the National Intergovernmental Purchasing Association (NIPA) to purchase Sodium Hypochlorite for use at the Truckee Meadows Water Reclamation Facility.   TMWRF is required to disinfect treated effluent prior to discharging to the Truckee River.  Sodium Hypochlorite (bleach) is the chemical used in this process.  The annual cost is estimated to be $620,000 and will be shared pro-rata between the Cities of Sparks and Reno based on the current flow split to TMWRF.  The City of Sparks’s share of the annual cost is estimated to be approximately $198,000.  Staff recommends approval.



Background:

Sodium Hypochlorite (bleach) is used as the disinfectant for the final step in the treatment process prior to discharge of the effluent to the Truckee River.  TMWRF has discharge limits for fecal coliform bacteria and e. coli bacteria, both of which are killed by the bleach.   TMWRF currently uses approximately 1800 gallons per day of bleach in the disinfection process.



Analysis:

If approved, the City of Sparks would be utilizing the contract offered by the National Intergovernmental Purchasing Association (NIPA) which is a group purchasing organization similar to others used in the purchase of goods and services in the City of Sparks. 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 current NIPA contract price of $0.92/gallon is a $0.02/gallon increase from the current price of $0.90/gallon.  The NIPA contract represents a large share of the utility bleach market to which the City may leverage to its benefit..  This cost will be shared pro-rata between the Cities of Sparks and Reno based on the current flow split to TMWRF.  The City of Sparks’s share will be approximately $198,000/year.



Alternatives:
  1. City Council could reject the joinder and direct the City Manager to have staff comptetitively bid the purchase of Sodium Hypochlorite
  2. City Council can approve the joinder as presented.


Recommended Motion:

I move to approve joining the existing National IPA (NIPA) contract (AC-5598) for to the purchase of Sodium Hypochlorite (bleach) from Thatcher Company of Nevada) at a cost of $0.92 per gallon.



Attached Files:
     2019 12.5 NIPA Pricing 7-10-19.pdf
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