HomeMy WebLinkAboutAgenda Report - July 17, 2013 C-04AGENDA ITEM C'0
CITY OF LODI
,. COUNCIL COMMUNICATION
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AGENDA TITLE: Adopt Resolution Approving Purchase of Aluminum Chlorohydrate for Surface
Water Treatment Facility for Fiscal Year 2013/14 from Sole Source CalChem
Company, of Modesto ($60,000)
MEETING DATE: July 17, 2013
PREPARED BY: Public Works Director
RECOMMENDED ACTION: Adopt resolution approving purchase of aluminum chlorohydrate for
Surface Water Treatment Facility for Fiscal Year 2013/14 from sole
source CalChem Company, of Modesto, in the amount of $60,000.
BACKGROUND INFORMATION: The Surface Water Treatment Facility operation requires the
purchase of several different chemicals commonly used to treat
municipal drinking water. Through the competitive bidding process,
chemicals purchased include hypochlorite, salt, soda ash, sodium bisulfite, citric acid, and sodium
hydroxide. In addition to these chemicals, aluminum chlorohydrate (ACH) is required for the treatment
process to meet total organic carbon removal requirements established the California Department of
Public Health. ACH is also a commonly -used chemical for treating municipal drinking water and
CalChem Company is the only manufacturer in California (Exhibit A).
The CalChem manufacturing facility for ACH, located in Modesto, is approximately 42 miles from the
Surface Water Treatment Facility. This close proximity minimizes freight costs, in addition to providing a
lower cost by purchasing directly from the manufacturer versus a chemical supplier.
Per Lodi Municipal Code Section 3.20.070, Bidding, the bidding process may be dispensed when the
City Council determines that the purchase or method of purchase is in the best interests of the City. Staff
recommends purchase of ACH from CalChem Company for FY 2013/14 in the amount of $60,000 (Exhibit B).
FISCAL IMPACT: Funds for ACH are budgeted in the Water Operations budget.
FUNDING AVAILABLE: Water Plant Operating Fund (180461)
(z'_"as� '64'nC_—
Jordan Ayers
Deputy City Manager/Internal Services Director
F. Wally Si9ndelin
Public Works Director
Prepared by Larry Parlin, Deputy Public Works Director — Utilities
FWS/LP/pmf
Attachments
cc: Chief Water Plant Operator
FTI u11106 :01
"nradt Bartlam, City Manager
K:\WP\COUNCIL\2013\CalChemAward—SWTP.doc 7/8/2013
California Aluminum Chankals
Mr. Andrew Richle
City of Lodi
2001 W Turner
Lodi CA 95241
May 10, 2013
Re. CalChem manufacturing
Dear Andrew,
10390 Scenic Drive
Forestville, CA 95436
Tel: 707.887.0227, Fax: 707.887.0248
Cell: 707.479.2894
Welispolypro@comcaat.net
CalChem is the only manufacMW
er of aluminum chlorohydrate (ACH) and blends in the states of California,
Nevada and Oregon. Our manu
cturing facility in Modesto CA is 42 miles from the City of Lodi's Water
Treatment Facility. Not only do
as this proximity minimize your freight cost but it also uniquely allows us
to meet your needs in times of emergency.
We have recently expanded oui
manufacturing capacity by adding two more reactors and additional
tankage for storage of manufad
used products. We use a dedicated trailer for our customers, that assures
the quality of the product and b
elps to prevent any possible cross contamination.
Within the industry we are reel
only the purest of raw material
Additionally, I have 32 years of
you in any capacity I can.
We look forward to working wl
Sincerely, i
Mark Wells
Independent Sales Represe
paized as manufacturing the highest quality ACH and ACH blends using
with strict manufacturing tolerances.
in the water treatment industry and will be available to assist
the City of Lodi. Thank you.
CHEM'
OA -
California Aluminum Chemicals
May 29, 2013
Mr. Andrew Richle
City of Lodi
20U1 W Turner
Lodi CA 95241
Dear Andrew,
As per your request enclosed is the yearly quote for CC2000. Price for the CC2000 is $0.34
per pound. Freight with the dedicated truck is $629.00 per load. Based on your estimate of
11,400 gallons per year in 600 -gallon deliveries, you will need approximately 19 loads. This
equates to 123,405 pounds of CC2000 at $0.34 per pound for a total of $41,957.70. At
$629.00 per load for the dedicated truck, annual freight costs $11,957..00. The total for the
product plus freight equals $53,908.70. Taxes at 8% are $4,312.70, for a total delivered cost
with tax of $58,221.40. These costs are approximate based on actual usage amounts. Any
questions please contact me at your earliest convenience.
Independent Sales Representative
RESOLUTION NO. 2013-129
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING
PURCHASE OF ALUMINUM CHLOROHYDRATE FOR THE SURFACE
WATER TREATMENT FACILITY FOR FISCAL YEAR 2013/14 FROM
SOLE SOURCE CALCHEM COMPANY, OF MODESTO
WHEREAS, the Surface Water Treatment Facility operation requires the
purchase of several different chemicals commonly used to treat municipal drinking
water. Aluminum chlorohydrate (ACH) is required for the treatment process to meet total
organic carbon removal requirements established by the California Department of Public
Health; and
WHEREAS, CalChem Company is the only manufacturer in California and is
located approximately 42 miles from the Surface Water Treatment Facility in Modesto,
CA. This close proximity minimizes freight costs, in addition to providing a lower cost by
purchasing directly from the manufacturer versus a chemical supplier; and
WHEREAS, per Lodi Municipal Code Section 3.20.070, Bidding, the bidding
process may be dispensed when the City Council determines that the purchase or
method of purchase is in the best interest of the City.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
approve the purchase of aluminum chlorohydrate for Surface Water Treatment Facility
for Fiscal Year 2013/14 from sole source CalChem Company, of Modesto, California, in
the amount of $60,000.
Dated: July 17, 2013
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I hereby certify that Resolution No. 2013-129 was passed and adopted by the
City Council of the City of Lodi in a regular meeting held July 17, 2013, by the following
vote:
AYES: COUNCIL MEMBERS — Johnson, Katzakian, Mounce, and
Mayor Nakanishi
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — Hansen
ABSTAIN: COUNCIL MEMBERS — None
RANDI JOHL-OLSON
City Clerk
2013-129