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Report regarding a resolution approving purchase agreements for the routine furnishing of bulk process chemicals at the Water Quality Control Plant for fiscal year 2026-27. (Brian Schumacker, Plant Superintendent)
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RECOMMENDATION
Recommendation
Staff recommends that the City Council adopt a resolution approving four purchase agreements for the furnishing of bulk process chemicals for wastewater treatment for fiscal year 2026-27 and authorize the City Manager or authorized designee to execute the necessary agreements.
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BACKGROUND/DISCUSSION
The South San Francisco-San Bruno Water Quality Control Plant (WQCP) routinely uses bulk chemicals in several different processes to treat wastewater. These bulk chemicals include disinfectants used to remove residual pathogens, coagulants used to remove solids, and chemicals used to neutralize chlorine during dechlorination. The City's practice is to procure these chemicals at the beginning of the fiscal year to establish guaranteed competitive prices for the entire fiscal year. Bulk suppliers deliver chemicals as needed to meet treatment demands.
Section 4.04.040 of the South San Francisco Municipal Code (SSFMC) authorizes the City to take advantage of valid contract terms that have been negotiated by another governmental agency, where that agency had used a quote or bid process substantially conforming with SSFMC Chapter 4.04 and State law. The WQCP is a member of the Bay Area Chemical Consortium (BACC), along with over sixty participating public agencies. The BACC follows an open bid process for the combined purchase of bulk chemicals. Each member agency of the BACC receives a benefit of large quantity purchase pricing by integrating the volume of their agency's chemical needs with the needs of the rest of the consortium. Due to the combined bid solicitations for these agencies, each agency can purchase the chemicals at a lower price than if each agency solicited bids separately. Staff cannot precisely calculate as to the savings an agency receives by ongoing participation in the consortium; however, new members have generally reported savings of up to 20 percent on chemical purchases after becoming a member of the BACC. Consistent with SSFMC 4.04.040, the City can rely on BACC collective bidding for this procurement.
The BACC recommends awarding bulk chemical purchase agreements to the following companies based on competitive bidding. City staff has reviewed these price quotes and concurs with the BACC recommendations.
Lowest Bidder Item Unit Cost
Kemira USA Inc. Ferric Chloride (40 percent), $2.840/gallon
Univar USA, Inc. Sodium Hypochlorite (12.5 percent), $3.520/gallon
Heimburger USA, Inc. Sodium Bisulfite (25 percent), $1.530/gallon
Further, City may piggyback on contracts awarded by other governmental agencies when the contract terms are valid and the originating agency used a solicitation process that substantially conforms to the procedures established by state law and the City’s purchasing ordinance.
The purchase recommendation for Polydyne Clarifloc Polymer leverages competitive bidding for polymer completed on April 29, 2025, by the City of Riverside. This five-year term sets forth the most competitive pricing in California through June 30, 2030. Cooperative piggyback purchasing ensuring that Polydyne continues to provide competitive bulk polymer pricing for WE-527, 984, and 2204.
Vendor Item Unit Cost
Polydyne Polymer WE-527 $16.17/gallon
Polydyne Polymer WE-984 $13.29/gallon
Polydyne Polymer WE-2204 $16.17/gallon
RELATIONSHIP TO CITY COUNCIL PRIORITIES ACTION PLAN
The Public Works Department Water Quality Control Plant (WQCP) Division promotes public health and environmental stewardship. Continuing to fund bulk chemical purchases positively affects the Quality of Life Major Focus Area for South San Francisco residents by protecting public health and safety.
FISCAL IMPACT
Plant management includes the cost for the purchase of bulk chemicals in the WQCP's annual operating budget. Specific quantities of bulk chemicals vary depending upon the occurrence of winter storms and fluctuation of plant loadings. Plant management based chemical use forecasts on historical peak demand. The projected total cost for bulk chemicals (including sales tax) for FY 2026-27 is $2,455,080 (see Attachment 1 for cost breakdown).
CONCLUSION
The WQCP routinely utilizes bulk quantities of chemicals for the treatment of wastewater. The WQCP is a member of the BACC and participates in bidding for the purchase of three chemicals necessary for the treatment of wastewater. Following the BACC's recommendations, the WQCP has drafted purchase agreements to procure the chemicals for FY 2026-27. Adoption of the attached resolution will allow for the execution of the contracts and the continued reliable operation of the WQCP.
Staff recommends that the City Council adopt a resolution approving the purchase agreements for the furnishing of bulk process chemicals for wastewater treatment for fiscal year 2026-27 and authorize the City Manager or authorized designee to execute the necessary agreements.
ASSOCIATED DOCUMENTS
1. Cost breakdown for bulk chemicals