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HomeMy WebLinkAboutAgenda Report - May 16, 2018 C-08TM CITY OF LODI COUNCIL COMMUNICATION AGENDA ITEM c -s AGENDA TITLE: Adopt Resolution Authorizing City Manager to Execute Amendment No. 1 to Contract with Thatcher Company of California, Inc., of Sacramento, for Surface Water Treatment Facility and Well Chemical Supply ($30,000) May 16, 2018 MEETING DATE: PREPARED BY: Public Works Director RECOMMENDED ACTION: Adopt resolution authorizing City Manager to execute Amendment No. 1 to contract with Thatcher Company of California, Inc., of Sacramento, for Surface Water Treatment Facility and well chemical supply, in the amount of $30,000. BACKGROUND INFORMATION: The Surface Water Treatment Facility (SWTF) requires various chemicals throughout the treatment process to produce potable water. Currently, the SWTF is using Caustic Soda and Citric Acid to perform required periodic chemical washes on the filtration system. In addition, each well site serving the City of Lodi is chlorinated using chemicals supplied by Thatcher Company of California, Inc. The City entered into a contract with Thatcher Company of California, Inc. for the supply and delivery of various chemicals used in the water treatment process on September 17, 2012. The first two-year contract extension was executed on September 16, 2014 and the second on October 20, 2016. The contract currently expires on September 17, 2018. The delivery of chemicals to SWTF and City wells varies with the amount of water being produced and the quality of water coming into SWTF. Due to a need for more chemical washes on the filtration system than anticipated, Staff is requesting additional funds to purchase chemicals through the end of the contract term. Staff recommends authorizing City Manager to execute Amendment No. 1 to contract with Thatcher Company of California, Inc., of Sacramento, for Surface Water Treatment Facility and well chemical supply, in the amount of $30,000, for a total not -to -exceed amount of $503,064, over the entire six-year contract term. FISCAL IMPACT: Funding for chemical purchases is included in the Water Operations budget. This purchase will not impact the General Fund. FUNDING AVAILABLE: Water Operating Fund/SWTF (56052005) Water Operating Fund/Production (56052003) Andrew Keys Deputy City Manager/Internal Services Director Prepared by Travis Kahrs, Water Plant Superintendent Attachment cc: Andrew Richle, Utilities Superintendent Lance Roberts, Utilities Manager APPROVED: Charles E. Swimley, Jr. Public Works Director chwaba City Manager R:\GROUP\ADMIN\Council\2018\05162018\Thatcher\CC Thatcher amend no 1.doc 5/1/2018 AMENDMENT NO. 1 THATCHER COMPANY OF CALIFORNIA, INC. SURFACE WATER TREATMENT FACILITY AND WELL IMPROVEMENT CHEMICAL SUPPLY CONTRACT THIS AMENDMENT NO. 1 TO CONTRACT, is made and entered this day of 2018, by and between the CITY OF LODI, a municipal corporation (hereinafter "CITY"), and THATCHER COMPANY OF CALIFORNIA, INC., a California corporation, (hereinafter "CONTRACTOR"). F WITNESSETH: 1. WHEREAS, CONTRACTOR and CITY entered into a Contract (the "Agreement") on September 10, 2012, Extension No. 1 on September 16, 2014, and Extension No. 2 on October 20, 2016, attached hereto as Exhibit 1, 1A and 1B respectively, and made part hereof; and 2. WHEREAS, CITY requested to increase the not -to -exceed amount by $30,000, for a total contract amount of $503,064, within the existing fee schedule for the purpose of additional required chemicals for potable water treatment; and 3. WHEREAS, CONTRACTOR agrees to said amendment. NOW, THEREFORE, the parties agree to amend the total contract amount under the Agreement as set forth above. All other terms and conditions of the Agreement remain unchanged. IN WITNESS WHEREOF, CITY and CONTRACTOR have executed this Amendment No. 1 on the date and year first above written. CITY OF LODI, a municipal corporation Herein above called "CITY" THATCHER COMPANY OF CALIFORNIA, INC., a California corporation, Hereinabove called "CONTRACTOR" STEPHEN SCHWABAUER CRAIG N. THATCHER City Manager President Attest: JENNIFER M. FERRAIOLO City Clerk Approved as to Form JANICE D. MAGDICH City Attorney Exhibit 1 SWTF/Well Chemical Supply Contract 2012-14 CONTRACT PAGE 1 CITY OF LODI, CALIFORNIA THIS CONTRACT, made by and between the CITY OF LODI, State of California, herein referred to as "City" and SIERRA CHEMICAL COMPANY herein called "Contractor." WITNESSETH: That the parties hereto have mutually covenanted and agreed, and by these presents do covenant and agree with each other, as follows: The complete contract consists of the following documents, which are filed in the Public Works Department, which are incorporated herein by this reference, to -wit: Notice Inviting Bids The July 1992 Edition Standard Information to Bidders Specifications, State of California General Provisions Business and Transportation Special Provisions Agency, Department of Bid Proposal Transportation Contract Exhibit A — Well Locations and Modification Drawings Exhibit B — SWTF Chemical Plan and Chemical Storage Drawings All of the above documents, sometimes hereinafter referred to as the "Contract Documents," are intended to cooperate so that any work called for in one and not mentioned in the other is to be executed the same as if mentioned in all said documents. ARTICLE I That for and in consideration of the payments and agreements hereinafter mentioned to be made and performed by the City and under the condition expressed in the bond bearing even date with these presents and hereunto annexed, the Contractor agrees with the City, at Contractors cost and expense, to do all the work and furnish all the materials except such as are mentioned in the specifications to be furnished by the City, necessary to perform and complete in a good workmanlike and substantial manner and to the satisfaction of the City as shown and described in the Contract Documents which are hereby made a part of the Contract. ARTICLE II The City hereby promises and agrees with the Contractor to employ, and does hereby employ, the Contractor to provide all materials and services not supplied by the City and to do the work according to the terms and conditions for the price herein, and hereby contracts to pay the same as set forth in Section 5-600, "Measurement, Acceptance and Payment," of the General Provisions, in the manner and upon the conditions above set forth; and the said parties for themselves, their heirs, executors, administrators, successors and assigns, do hereby agree to the full performance of the covenants herein contained. ARTICLE III The Contractor agrees to conform to the provisions of Chapter 1, Part 7, Division 2 of the Labor Code. The Contractor and any Subcontractor will pay the general prevailing wage rate and other employer payments for health and welfare, pension, vacation, R:IGROUPIW WVWWaler SwfPlChemkal Supply ContractISierrs Contract doc 07/24/2012 SWTF/Well Chemical Supply Contract 2012-14 CONTRACT PAGE2 travel time, and subsistence pay, apprenticeship or other training programs. The responsibility for compliance with these Labor Code requirements is on the contractor. ARTICLE IV And the Contractor agrees to receive and accept the following prices as full compensation for fumishing the work contemplated and embraced in this agreement; also for all Toss or damage arising out of the nature of the work aforesaid or from the action of the elements, or from any unforeseen difficulties or obstructions which may arise or be encountered in the prosecution of the work until it's acceptance by the City, and for all risks of every description connected with the work; also for all expenses incurred by or in consequence of the suspension or discontinuance of work; and for well and faithfully completing the work, and the whole thereof, in the manner and according to the Contract Documents, to -wit: Perform the work necessary for the safe delivery of sodium hypochlorite 12.5% to all 24 required wells in order to maintain adequate operating levels; and the safe delivery of chemicals to the SWTF with a frequency based on usage. SWTFIWeII Chemical Supply Contract 2012-2014 WELL CHEMICAL SUPPLY Section 1 consists of the routine delivery of NSF certified sodium hypochlorite 12.5% solution to 24 well locations, including annual maintenance of chemical. 1. Estimated annual usage is 26,000 gallons which should include all delivery costs, applicable taxes and fees associated with scope of work. Note: The frequency of deliveries shall be as required to maintain a continuous operation. The quantity and strength of solution is based on annual estimated usage and is subject to change based on the water production of each individual well. Item 1 Quantity l Item 26,:00 I Sodium Hypochlorite 12.5% Solution LIncluding all delivery costs and fees Unit Gallon Unit Cost $1.52 Total Item i Cost 1 $39,520.00 The list of well locations is found in Section 6-01 under Description of Work. Delivery must be made within 5 business days of order if different than regularly scheduled deliveries. SWTF CHEMICAL SUPPLY Section 2 consists of the routine delivery of NSF certified chemicals to the surface water treatment facility located at 2001 West Turner Rd. These chemicals include, but may not be limited to: Sodium Bisulfite; Citric Acid and Sodium Hydroxide. Delivery and all applicable taxes and associated fees shall be included in per unit cost. Note: The quantity and strength of solution is based on annual estimated usage and the frequency of delivery will change based on water production. R:IGROUP\WW l Water SWTP\Chemical Supply ContractlSlerra Contract.doc 07/2412012 SWTFIWeIl Chemical Supply Contract 2012-14 CONTRACT PAGE 3 Quantity 12 12 12 12 Item Unit Unit Cost Total Item Cost Salt 501Wbag Including all delivery costs and fees Sodium Bisulfite 38% Solution Including all delivery costs and fees Citric Acid 30% Solution Including all delivery costs and fees Sodium Hydroxide 25% Solution Including all delivery costs and fees Pallet $318.50 $3.882.00 330 Gallons $689.70 $8,276.40 330 Gallons $1,815.00 $21,780.00 330 Gallons $448.80 $5,385.60 Total $39,324.00 The City reserves the right to multiple awards based on the lowest responsive bid of each individual bit item within the summary. Delivery must be made within 5 business days of order. Total contract amount not to exceed: $78,844.00 ARTICLE V By my signature hereunder, as Contractor, I certify that I am aware of the provisions of Section 3700 of the Labor Code, which requires every employer to be insured against liability for Workers' Compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply. with such provisions before commencing the performance of the work of this contract. ARTICLE VI It is further expressly agreed by and between the parties hereto that, should there be any conflict between the terms of this instrument and the Bid Proposal of the Contractor, then this instrument shall control and nothing herein shall be considered as an acceptance of the said terms of said proposal conflicting herewith. ARTICLE VII The Contractor agrees to commence work pursuant to this contract within 15 calendar days after the City Manager has executed the contract and to diligently prosecute to completion within the allotted number of working days: ARTICLE VIII The term of this contract is for a two (2) year period. At its option, City may extend the terms of this Agreement for an additional two (2) two (2) -year extensions; provided, City gives Contractor no less than thirty (30) days written notice of its intent prior to expiration of the existing term. In the event City exercises any option under this paragraph, all other terms and conditions of this Agreement continue and remain in full force and effect. The total duration of this Agreement, including the exercise of any option under this paragraph, shall not exceed six (6) years. WHEN SIGNING THIS CONTRACT, THE CONTRACTOR AGREES THAT THE TIME OF COMPLETION FOR THIS CONTRACT IS REASONABLE AND THE CONTRACTOR AGREES TO PAY THE CITY LIQUIDATED DAMAGES AS SET FORTH IN SECTION 6-04.03 OF THE R:IGROUPIWWNMWater SWTP1Chemical Supply Contrad%slerra Contrad.doc 07/24/2012 SWTF/Well Chemical Supply Contract 2012-14 CONTRACT PAGE 4 SPECIAL PROVISIONS. CONTRACTOR AGREES THAT THIS AMOUNT MAY BE DEDUCTED FROM THE AMOUNT DUE THE CONTRACTOR UNDER THE CONTRACT. IN WITNESS WHEREOF, the parties to these presents have hereunto set their hands the year and date first written below. Sierra Chemical Co. Dated: August 22, 2012 CONTRACTOR Authorized Signature Matt t4irincic General Manager Title Corporation TYPE OF ORGANIZATION Individual, Partnership or Corporation (Affix corporate seal if Corporation) 2302 [Arkin Circle Address Sparks, NY 89431 ( 775 ) 358--0888 CITY OF LODI a M icipal corporation onradt BartIam City Manager Attest: Randi J rk Approved as to Form: trarSTATIO D shwa saue City Attorney Telephone R:IGROUP%WWW1Waler SWTP.Chemical Supply ConlracISierra Conlracl.doc 07/24/2012 CONTRACT EXTENSION AGREEMENT 2012/2014 SURFACE WATER TREATMENT FACILITY AND WELL IMPROVEMENT CHEMICAL SUPPLY CONTRACT �THIS CONTRACT EXTENSION AGREEMENT, made and entered this ^ day of . 2014. by and between the CITY OF LODI, a municipal corporation, hereinafter called 'Owner, and SIERRA CHEMICAL COMPANY, hereinafter called "Contractor.' WITNESSETH: 1. WHEREAS; Contractor and Owner entered into the Surface Water Tresnt Facility and Well Improvement Chemical Supply Contract - 2012/2014 on Septe er 17, 2012.(the "Contract"), providing that the contract could be extended by mutual agreement of both parties; and 2. WHEREAS; At its option, Owner has advised Contractor of its intent to extend the terms of the Contract an additional two years; and 3. WHEREAS; both parties desire to extend the contract in accordance with Article VIII thereof: and 4. WHEREAS; the Contract shall not exceed the original contract price of $78,844.00 for the duration of this extension. 5. TERM AND TERMS: The term of this Contract Extension Agreement shall be for a period of two (2) years, commencing September 17, 2014 and terminating September 17, 2016. M other terms and conditions will remain as set forth as reflected in the Surface Water Treatment Facility and Well Improvement Chemical Supply Contract - 2012/2014 Contract, attached hereto as Exhibit A and made a part hereof as though fully set forth herein. 6. INSURANCE: Contractor shall provide Owner proof of current insurance coverage as set forth in the attached Exhibit A, Insurance Requirements for Contractor. IN WITNESS WHEREOF, Owner and Contractor have executed this Contract Extension Agreement onpbGL 1 in 2014. CITY OF LODI, a municipal corporation h : • a s ave called "Owner STE ■ SCHWAIMUEJ City Manager Attest: 4�[. -A. U E?II<� Cleric SIERRA CHEMICAL COMPANY. her ' a'. ave tal •d ontractar' By: 76,6 7 Cspaliel I' (Print Name) Title: m elt, o ( 1344a) er Approved as torx m ff - ..,� R:1GRa1119WWW Watch tilt j h. n.+k:1 ; 1f$PrEi tyitiicnd Contract Extension (SWTF and Welk Chemical Supply 201244).doc6/3012014 (0 Exhibit 1B CONTRACT EXTENSION AGREEMENT 2012/2014 SURFACE WATER TREATMENT FACILITY AND WELL IMPROVEMENT CHEMICAL SUPPLY CONTRACT THIS CONTRACT EXTENSION AGREEMENT. made and entered thisD'54 day of Sepfemar, 2016, by and between the CITY OF LODI, a municipal corporation (hereinafter called 'CITY"), and SIERRA CHEMICAL COMPANY, (hereinafter called "CONTRACTOR'). WITNESSETH: 1. WHEREAS, CONTRACTOR and CITY entered into the Surface Water Treatment Facility and Well Improvement Chemical Supply Contract — 2012/2014 on September 17, 2012 (the "Contract"), attached hereto as Exhibit 1, providing that the contract could be extended by mutual agreement of both parties; and 2. WHEREAS, CONTRACTOR and CITY mutually agreed to extend the Contract on September 16, 2014, attached hereto as Exhibit 2; and 3. WHEREAS, At its option, CITY has advised CONTRACTOR of its intent to extend the terms of the Contract an additional two (2) years and both parties desire to extend the contrail in accordance with Article VIII thereof; and 4. TERM AND TERMS: The term of this Contract Extension Agreement shall be for a period of two (2) years, commencing September 17, 2016 and terminating September 17, 2018. All other terms and conditions will remain as set forth as reflected in the Surface Water Treatment Facility and Well Improvement Chemical Supply Contract — 2012/2014 Contract, and made a part hereof as though fully set forth herein. IN WITNESS WHEREOF, CITY and CONTRACTOR have executed this Contract Extension Agreement on sep er-t+a, Qct. 94)2016. CITY OF LODI, a municipal corporation lid 'n ove called "CITY° STEPHEN SCHWABAUEf� City Manager Attest: J IFER M ERRAIOLO iit Clerk Approved as to Foram: ANICE D ' MAGDICH City Attorney SIERRA CHEMICAL COMPANY Here b y��ed -CC� CTOR" Ronald Espalln Commercial Manager RESOLUTION NO. 2018-87 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 1 TO CONTRACT WITH THATCHER COMPANY OF CALIFORNIA, INC., OF SACRAMENTO, FOR SURFACE WATER TREATMENT FACILITY AND WELL CHEMICAL SUPPLY WHEREAS, the Surface Water Treatment Facility requires various chemicals throughout the treatment process to produce potable water; and WHEREAS, the City entered into a contract with Thatcher Company of California, Inc., for the supply and delivery of various chemicals used in the water treatment process on September 17, 2012; the first two-year contract extension was executed on September 16, 2014, and the second on October 20, 2016, with the contract currently expiring on September 17, 2018; and WHEREAS, staff recommends authorizing the City Manager to execute Amendment No. 1 to contract with Thatcher Company of California, Inc., of Sacramento, for Surface Water Treatment Facility and well chemical supply, in the amount of $30,000. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the City Manager to execute Amendment No. 1 to contract with Thatcher Company of California, Inc., of Sacramento, California, for Surface Water Treatment Facility and well chemical supply, in the amount of $30,000, for a total not -to -exceed amount of $503,064, over the entire six-year contract term. Dated: May 16, 2018 I hereby certify that Resolution No. 2018-87 was passed and adopted by the City Council of the City of Lodi in a regular meeting held May 16, 2018, by the following vote: AYES: COUNCIL MEMBERS — Chandler, Johnson, Kuehne, Mounce, and Mayor Nakanishi NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None f 'T. A NIFER . FERRAIOLO City Clerk 2018-87