Sparks City Council Meeting 11/25/2019 2:00:00 PM

    Monday, November 25, 2019 2:00 PM
    Council Chambers, Legislative Bldg, 745 4th Street, Sparks, NV

Consent Items: 8.2

Title: Consideration, discussion and possible approval to join existing National IPA (NIPA) contract with Thatcher Company of Nevada, Inc. to supply Sulfuric Acid to the Truckee Meadows Water Reclamation Facility (TMWRF) at a contract price of $246.00 per ton, with an estimated annual cost of $180,000 with the City of Sparks's share estimated at $63,000 per year.
Petitioner/Presenter: John A. Martini, P.E. – Assistant City Manager/Casey Mentzer, P.E. – TMWRF Plant Engineer
Recommendation: Staff recommends that the Council approve a one year contract for Thatcher Company of Nevada, Inc. to provide Sulfuric Acid to TMWRF at a contracted price of $246.00 per solution ton.
Financial Impact: $180,000.00 will be funded out of Fund 5605, Program 131505, Account 603325 with the City of Reno reimbursing their share in the amount of $117,000.00.
Total Costs: $180,000.00
Fund: Joint Treatment Plant    Account: 603325
Program: TMWRF Operations (131505)
Amount: $180,000.00    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 seeking City Council approval to joinder onto an existing contract between Thatcher Chemical Company of Nevada, Inc. and Omnia Pricing to purchase sulfuric acid for use at the Truckee Meadows Water Reclamation Facility for one year with an estimated annual cost of $180,000 of which the City of Sparks's share is estimated at $63,000 per year.



Background:

Sulfuric Acid is used to lower pH in water discharged from Truckee Meadows Water Reclamation Facility (TMWRF) to the Truckee River and to the effluent reuse system in order to maintain compliance with the discharge permit pH limit. The lowering of pH in the effluent also allows the bleach to be more effective in disinfecting the effluent. TMWRF uses approximately 750 tons of sulfuric acid per year to treat the effluent. 



Analysis:

If approved, the City of Sparks would be utilizing the contract offered by the National IPA (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 of a formal bid, as allowed by NRS 332.115 and NRS 332.195.  The current NIPA contract price of $246.00/solution ton represents an approximate 1.7% increase from the current price of $242/solution ton.  However, staff believes there would not be any improvement in the price if the contract was competitively bid by the City of Sparks.

If approved, the contract the City would joinder onto would be in effect for a period of one year.  This cost will be shared pro-rata between the Cities of Sparks and Reno based on the current flow split to TMWRF.  At current flows, the City of Sparks’s share will be approximately $63,000/year.



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


Recommended Motion:

I move to approve to join existing National IPA (NIPA) contract with Thatcher Company of Nevada, Inc. to supply Sulfuric Acid to the Truckee Meadows Water Reclamation Facility (TMWRF) at a contract price of $246.00 per ton, with an estimated annual cost of $180,000.



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