HomeMy WebLinkAbout01-03-2017 Agreement between SLO City and Lhoist North AmericaAGREEMENT
L
THIS AGREEMENT is made and entered into in the City of San Luis Obispo on this 3 day of
y , 2017 by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter
referred to as City, and Lhoist North America, hereinafter referred to as Contractor.
WITNESSETH:
WHEREAS, City invited bids for chemicals to treat water and wastewater per Specification No. 91528.
WHEREAS, pursuant to said invitation, Contractor submitted a proposal that was accepted by City to be
supplied with Liquid Calcium Hydroxide for the Water Resource Recovery Facility at a cost of $660.00/dry ton plus
prevailing fuel surcharge and including services.
NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter
contained, the parties hereto agree as follows:
TERM. The term of this Agreement shall be from the date this Agreement is made and entered,
as first written above, until January 31, 2018. The term of the contract may be extended by mutual consent for an
additional year. During this extended period, unit prices may not be increased by more than the percentage change
in the US consumer price index for All Urban Consumers (CPI -U).
2. INCORPORATION BY REFERENCE. City Specification No. 91528 and Contractor's
proposal dated December 19, 2016 are hereby incorporated in and made a part of this Agreement. To the extent that
there are any conflicts between the City's specification and this Agreement and the Contractor's proposal, the terms
of the City's specification and this Agreement shall prevail, unless specifically agreed otherwise in writing signed by
both parties.
3. CITY'S OBLIGATIONS. For providing chemicals and services as specified in this Agreement,
City will pay and Contractor shall receive payments based upon the actual quantities ordered and received by City
and the unit prices bid by Contractor.
4. CONTRACTOR'S OBLIGATIONS. For and in consideration of the payments and agreements
hereinbefore mentioned to be made and performed by City, Contractor agrees with City to provide chemicals and
services as described in Exhibit A attached hereto and incorporated into this Agreement.
5. AMENDMENTS. Any amendment, modification or variation from the terms of this Agreement
shall be in writing and shall be effective only upon approval by the City Manager of the City.
6. COMPLETE AGREEMENT. This written Agreement, including all writings specifically
incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral
agreement, understanding or representation not reduced to writing and specifically incorporated herein shall be of
any force or effect, nor shall any such oral agreement, understanding or representation be binding upon the parties
hereto.
7. NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage
prepaid by registered or certified mail addressed as follows:
City Utilities Director
City of San Luis Obispo
879 Morro Street
San Luis Obispo, CA 93401
Contractor Lhoist North America
Attn: Jim Miles
3120 Crestline Drive
Corona, CA. 92881
8. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor do covenant that each
individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute
Agreements for such party.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year
first above written.
ATTEST:
CITY OF SAN LUIS OBISPO
01
�r By.
City Clerk City Ma e
APPR"D AS TO FORM: CONTRACTOR
City
SPECIFICATION
CALCIUM HYDROXIDE
Requirement
Exhibit A
It is required that a Contractor be established to furnish in accordance with these specifications, all of the
City's requirements for calcium hydroxide during the period of February 1, 2017 to January 31, 2018 (12
months)
2. General
Chemical Name: Calcium Hydroxide
Chemical Formula: Ca(OH)2
Concentration: 42-47%
Specific Gravity: 1.35
Unit Weight: 5 pounds/gallon
3. General Impurities
The calcium hydroxide supplied under this specification shall contain no soluble material or organic
substances in quantities capable of producing deleterious or injurious effects on Water Resource Recovery
Facility discharge that has been treated properly with calcium hydroxide.
4: Quantity
a. The estimated requirements for calcium hydroxide as listed previously, will vary with the actual
demands of the City.
b. The estimated requirements are given for information purposes only and shall not be deemed to
guarantee either a minimum amount or restrict the maximum amount to be furnished.
c. It is the intent of this specification to require the Contractor to furnish all the City's calcium
hydroxide requirements.
d. Neither an under run, regardless of extent, nor an overrun, regardless of extent, in the actual
quantity delivered compared to the estimated quantity shall entitle the Contractor to an adjustment
in the unit price nor to any other compensation.
5. aellvery
a. The Contractor shall make deliveries of calcium hydroxide upon request to the City of San Luis
Obispo Water Resource Recovery Facility, 35 Prado Road, San Luis Obispo, California, 93401.
b. The Contractor shall make deliveries of calcium hydroxide between the hours of 7:30 a.m, and
3:00 p.m., Monday through Friday. If, for any reason, the Contractor cannot make the delivery
during the above -listed hours, the Contractor shall notify the City, and an alternate time will be
scheduled.
Exhibit A
c. The Contractor shall deliver calcium hydroxide in bulk tank -trucks, of minimum 3,500 gallon
capacity to fill the City's two (2) 5,000 gallon tanks.
d. The contractor shall provide delivery service on Saturday, Sunday and legal holidays as necessary.
With an order lead time of two days.
Condition of Caro Trailers
a. All cargo trailers and appurtenant valves used for the delivery of the calcium hydroxide solution,
under this specification, shall be in good mechanical order and shall be in full compliance with the
applicable requirements of the Hazardous Materials Regulations of the Department of
Transportation, Code of Federal Regulations, as currently issued.
b. All appurtenant valves, pumps and discharge hoses used for the delivery of calcium hydroxide
solution shall be clean and free from contaminating material. If off-loading equipment is not
properly cleaned, this will constitute a reason for rejection of the load.
c. All trailer ports used for the loading or delivery of calcium hydroxide shall be secured with
appropriate tamper -proof, security seal verifying the shipment has not been breached in transit. If
seals are not intact, this will constitute a reason for rejection of the load.
Way Requirement
Contractor truck driver shall wear the appropriate protective face and body apparel, as required by the
California Occupational Safety and Health Administration, when unloading the calcium hydroxide solution.
Placement of Orders
The City shall notify the Contractor a minimum of two (2) days in advance of the requirements for each
delivery.
City Contacts
In the event of a problem, or if a question arises regarding this specification, the Contractor may contact
Howard Brewen, Water Resource Recovery Facility, at (805)781-7240.
Section E
Supply and Equipment Contracts
The Contractor shall procure and maintain for the duration of the contract insurance against claims for
injuries to persons or damages to property that may arise from or in connection with the products and
materials supplied to the City. The cost of such insurance shall be borne by the Contractor.
Minimum Scope of Insurance. Coverage shall be at least as broad as Insurance Services Office
Commercial General Liability coverage ("occurrence" form CG 0001).
Minimum Limits of Insurance. Contractor shall maintain limits no less than $1,000,000 per occurrence
for bodily injury, personal injury and property damage. If Commercial General Liability or other form
with a general aggregate limit is used, either the general aggregate lirnit shall apply separately to this
project/location or the general aggregate limit shall be twice the required occurrence limit.
Deductibles and Self -Insured Retentions. Any deductibles or self-insured retentions must be declared
to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such
deductibles or self-insured retentions as respects the City, its officers, officials, employees and
volunteers; or the Contractor shall procure a bond guaranteeing payment of losses and related
investigations, claim administration and defense expenses.
Other Insurance Provisions. The general liability policy is to contain, or be endorsed to contain, the
following provisions:
The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as
respects: products and completed operations of the Contractor. The coverage shall contain no
special limitations on the scope of protection afforded to the City, its officers, officials,
employees, agents or volunteers.
2. The Contractor's insurance coverage shall be primary insurance as respects the City, its officers,
officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the
City, its officers, officials, employees, agents or volunteers shall be excess of the Contractor's
insurance and shall not contribute with it.
3. The Contractor's insurance shall apply separately to each insured against whom claim is made or
suit is brought, except with respect to the limits of the insurer's liability.
4. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be
suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty
(30) days' prior written notice by certified mail, return receipt requested, has been given to the
City.
Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of
no less than ANII.
Verification of Coverage. The Contractor shall furnish the City with original endorsements effecting
coverage required by this clause. The endorsements are to be signed by a person authorized by that
insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City
before work commences.
-18-
City Manager Report
Final City Manager Approval _ Approver Name Date Approved
City Administration I DJJ 1/3/17
... .............
Reviewer Routing List
Reviewer Name
Date Reviewed
City Attorney
JMA
12/29/16
Finance
XB
1/3/17
December 27, 2016
FROM: Carrie Mattingly, Utilities Director 161228
Daryl Grigsby, Public Works Director 91L`lffor�DG
PREPARED BY: Aaron Floyd, Deputy Director Water
Dean Furukawa, Water Treatment Plant Supervisor
l SUBJECT: AWARD OF CHEMICAL CONTRACTS FOR 2017
RECOMMENDATIONS
1. Award contracts for Water Treatment Plant, Water Resource Recovery Facility, and Swim
Center chemicals to Argo, BASF, Brenntag Pacific, ChemTrade, JCI Jones, Kemira,
SNF/Polydyne, and Thatcher.
2. Award a sole source contract for Calcium Hydroxide for the Water Resource Recovery
Facility to Lhoist North America.
DISCUSSION
On November 16, 2016 the City Manager approved Invitation For Bids (IFB) Specification No. 91528
for the 2017 Water Treatment Plant (WTP), Water Resource Recovery Facility (WRRF), and Swim
Center chemicals and authorized staff to advertise for bids based on Resolution No. 9377 (2002
Series). Resolution No. 9377 modified the financial policies for purchase of chemicals required for
treatment of water and wastewater, authorizing the City Manager to approve invitation for bids and
award of contracts. This was the first time that the Swim Center chemicals were included as part of
this IFB. The purchasing amount for those chemicals remain within the City Manager's purchase
authority. Bid proposals were received and publicly opened on December 14, 2016. The chemical
companies which provided the lowest responsible bid for each chemical are shown in Table 1.
Sole Source Contract
Calcium Hydroxide was included as part of this 2017 IFB for chemicals. At bid opening on December
14, 2016 no bids were received for this chemical, although the only known vendor (Lhoist North
America) had been notified well in advance of the upcoming bid. Since no other bids for Calcium
Hydroxide werc rcccivc(l, Lhoist North America continues to be the only vendor that supplies
Acceptance of Utilities Chemical Bids for 2016
F,
Calcium Hydroxide and hacl previously been awarded the 2016 contract. Lhoist North America was
contacted after the bid opening and acknowledged that they had missed the bid deadline because of
some internal miscommunication. As they are the only supplier for Calcium Hydroxide, staff
requested a current quote which is shown in Attachment 2. Lhoist's quote is at the same price as
2016.
Calcium Hydroxide is a critical component of the nitrification process in the Aeration Bays at the
Water Resource Recovery Facility (WRRF). Calcium My(lroxide supplies alkalinity to the wastewater
which allows the biota (biology) to perform at optimal levels in the nitrification process. Without this
chemical, the nitrification process would be greatly inhibited and lead to violations of the City's
National Pollutant Discharge Elimination System (NPDES) permit.
The City's Municipal Code under 3.24.185 provides:
"Bids None received: Vim bids arc received, the purchase may be made through negotiated
contract or other process approved by the purchasing authority."
Staff contacted Lhoist as the sole provider in the arca and received a quote based on the bid
requirements (see Table 2 below).
In addition, The City's M1inicipal Coc1c under 3?4.060 provides (pertinent part):
Bidding procedures---t!se of not rct. mrc:d when....Sucli procedures may be dispensed with, at the
discretion and judgment of the purchasing authority as to the best interests of the city, as follows:...
C. Wben the item(s) to be purchased can be obtained from only one vendor or supplier...
Pursuant to the above, a sole source contract to I,hoist is recommended for this chemical.
Tnbh, 1: 2017 Cheniic,rl Loiv Rids
Chemical
Liquid Alum
Section
Watcr
Company
Price
ChcmTrade
$291.45/dry
ton
Sodium Sill colltioricle
AWater
Thatcher Company
$1,188/ton
Sodium Hypochlorite
Water & Wastewater
JCI Jones Chemicals Inc
$0.58/gal
$0.643/gal
Sodium Hypochloritc
Swine Center
Argo
$1.337/gal .
Sodium Bisul (it
Wastewater
JCI Jones Chemicals Inc
$0.85/gal�
Ferrous Chloride
Wastewater
Kemira
II
$560.06/dry
ton
Sodium Hydroxide AA/at(,r ,, \V istewaler Rrcnntag Pacific, Inc.
$0.7644/gal
Acceptance of Utilities Chernical Bids for 2016
Table 1: 2017 Chemical Lmt, Bids
Page 3
$0.8313/gal
Liquid Cationic 11olv111cr Wa'cr SNF 11olydyne $754/ton'
Liquid Cationic Polymer Wastewater BASF $9.62/gal
Liquid Muriatic Acid Swim Center I3renntag Pacific, Inc. $1.315/gal
Calcium Hydroxide
FISCAL IMPACT
-....lo,')k2: Clleirrir'nl ",)',-,Yow-Ce
\��astcwalcr
1,1101st $660.00/dry
ton
The chemical contract awards cover the t2 -month period, February 1, 2017 thru January 31, 2018,
wbicli overlaps two liscal wars. "There is adegnale budget for chemicals for the Water Treatment
Plant, Water 1:".'sourcc Ilcco\•cry I ;�ci1i��. and Swim ''cn(cr through June 30, 2017 (see Table 3
below). The clicmical cons iloicd in 7 ahle 1 above ,v ill be utilized in the development of the 2017-
19 bud�2cts.
Table 3: Chemical Burhel lhrou,;;h June 30. 2017
Facility and Chemic,,d 13udbcl Linc 13udbctcd
Item 2/1/17-
6/30/1
Water Treatment Planl _
Liquid Aluin —� I _55150.7755 — DUN
Soclium HN/d]-()XIde 1 �> 1 X0,7775 ,5.9tl0
Sodium IIvhochlorilc 2 I 777 521,300
Liquid Cationic Polymer 55150.7801 - � S17,800
Sodium S1licof1uO11deI_�0-787 �5 7.4 00
Total — NVIT $91,500
WRRF
Sodium Hypocl7loritc
Sodium Bisulfitc
CalClUm Flvdroxidc
Ferrous Chloride
Sodium llvdro-\1dc
55330.7775
55330.7775
.55330-7775
i�55330.7775
5 '30.777-5
$80,000
$34,000
S124,000
$4,000
$10.000
Acceptance of Utilities Chemical Bids for 2016
Table .?: Chemical 13ricfel llrr>ri,h ,Irene 30,
Liquid Cationic Polymer� X55330.7775
Total — WRRF --
Swim Center
Sodium Hypochlorite _100-50210-7775
Liquid Muriatic Acid i100-50210-7775 I.
Total — S-vvim Center
ATTA CU � I F N -I' S
1., 20.17 C;-I�cn�'{. _71 Bid Sumfivil
2,: CaIciu_rs i I drooxicEc [lt, >>e -
3.. A 7reements
18,000
5270,000
512,100
56,000
$18,100
Page 4