HomeMy WebLinkAboutStaff Report 265-06City of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: PUBLIC WORKS
DATE:JUNE 19, 2006 CMR:265:06
SUBJECT:APPROVAL OF BLANKET PURCHASE ORDER WITH SIERRA
CHEMICAL COMPANY IN AN AMOUNT NOT TO EXCEED $330~000
FOR THE PURCHASE OF BULK CHLORINE AND SULFUR DIOXIDE
FOR THE WATER QUALITY CONTROL PLANT
RECOMMENDATION
Staff recommends that Council:
8
Approve and authorize the City Manager or his designee to execute a blanket purchase
order for FY 06-07 with Sierra Chemical Company in an amount not to exceed $330,000;
and
Authorize the City Manager or his designee to negotiate and execute contract extensions
or blanket purchase orders for two additional years (FY 07-08 and FY 08-09).
DISCUSSION
Chlorine is required for disinfection to protect public health and sulfur dioxide is required to
eliminate the chlorine residual of the Water Quality Control Plant effluent before discharge into
the Bay.
A Request for Quotation for the purchase of bulk chlorine and sulfur dioxide was issued in April
2006. The solicitation was sent to seven vendors and only two responses were received: Teck
Cominco American responded with a "no bid" and Sierra Chemical Company provided a bid for
both chlorine and sulfur dioxide as specified. The quotation provides a unit price per ton of
chlorine and sulfur dioxide for estimated annual quantifies (300 tons for chlorine and 125 tons
for sulfur dioxide). These estimated quantities were specified for the purpose of determining the
lowest responsible bidder, and no guarantee is implied that the exact amount will be purchased.
Based on the current year’s usage, it is likely that the RWQCP will require slightly more product
than the above estimate for the coming year. The RFQ required bidders to include a provision
for price adjustments for two optional 12-month contract extensions. Sierra Chemical
Company’s bid specifies price increases of 0-5% based on the higher of the PPI or CPI Index for
each of the two optional 12 month extension periods. The proposed blanket purchase order
requires Council approval because the expenditures will likely exceed $250,000 per year.
The itemized bid from Sierra Chemical Company is provided in Attachment A. The
Certification of Nondiscrimination is Attachment B.
CMR:265:06 Page 1 of 2
RESOURCE t[MPACT
Funds have been budgeted for these operational costs in the FY 2006-07 Wastewater Treatment
budget.
POLICY I[M[PLICATI[ONS
Authorization of this blanket purchase order does not represent any change to the existing policy.
ENVIRONMENTAL REVIEW
Supplier is required to comply with all Federal, State and local environmental laws and
re~o~lations applicable to the transportation and delivery of chlorine and sulfur dioxide.
ATTACH1VIENTS
Attachment A: Bid Summary
Attachment B: Certification of Nondiscrimination
PREPARED BY:
DEPARTMENT HEAD
WILLIAM MIKS
Manager, Water Quality Control
GLENN ROBERTS
Director of Public Works
CITY MANAGER APPROVAL:
HARRISON
Assistant City Manager
CMR:265:06 Page 2 of 2
ATTACHMENT A
BIDDER (COMPANY): .,_,,S, IERRA CH.EM.ICAL COMPANY
SPECIFICATIONS AND BIDDER BID PAGES
DATE: May 8~ 2006
Bidder’s Response and Acceptance
In response to this Request for Quotation (RFQ), the undersigned, as Bidder, declares that the only persons or
parties interested in this Bid as principals are those named herein; that this Bid is made wHhout collusion with
any other person, firm or corporation; that the Bidder has carefully examined the speci,ficafions herein referred
to; and the Bidder proposes and agrees, if this Bid is accepted, that the Bidder will contract with the City of Palo
Alto (City), to provide all necessary materials, and furnish the specified requirements in ~his RFQ, in the manner
herein prescribed and at the prices stated.
Project Title: BULK CHLORINE AND SULFUR DIOXIDE (RFQ) number: 116742
Quotation Due Date:3:00 P.M.~ TUESDAY~ MAy 9~ 2006
ITEM QTY.UNIT DESCRIPTION UNIT PRICE TOTAL PRICE
01 300 TON Chlorine Bulk, in Accordance with Attached ~pecifications for $$
Bulk Chlorine.558.00 167400.00
02 125 TON Sulfur Dioxide Bulk, in Accordance with Attached Specification $$
for Bulk Sulfur Dioxide.442.00 55250.00
03 12 TON Chlorine Ton Containers, in Accordance with Attached $$Specifications for Ton Chlorine.560.00 6720.00
04 6 TON Sulfur Dioxide Ton Containers, in Accordance with Attached $$
Specifications for Ton Sulfur Dioxide.455.00 2730.00
05 4 EA Demurrage Charge, Per Month, for each Chlorine Ton Container.$$
(After 120 days)l.O0/day . --
06 2 EA Demurrage Charge, Per Month, for Each Sulfur Dioxide Ton $$Container.(After 120 days)l.O0/day
8.25% Sales Tax 19148.25
$251248.25Total, items 01 through 06 including sales tax:
(Totalin words TwO Hundred Fi fry One Thousand Two
Dollars and twenty Five cents
Hundred Forty Eight
"Prices quoted above shall remain firm for the initial period and shall include all applicable taxes,
regulatory fees, and all transportation and delivery charges as necessary to perform the
requirements of this RFQ. Pricing shall also include an allowance for fuel price increase during the
contract period. Requests for price adjustments during the contract period will not be allowed. In
the event that your quotation includes a provision for price adjustments during the two additional
contract extensions; the increase shall also include and allowance for any fuel surcharge during the
additional contract periods."
CITY OF PALO ALTO RFQ 116742 PAGE 1 OF 2
BIDDER(COMPANY): £T’RRRA qHEMI, CAL COMPANY
SPECIFICATIONS AND BIDDER BID PAGES
DATE: May, 8t 2006
Note:
below.
If a price increase is to apply to the City’s optional contract extensions spe&ify such in the space provided
If no price increase is to apply, enter "0."
Price increase for the first optional 12 month e~ension of this contact:
0-5%%Based on PPI or
Price increase for the second optional 12 month e~ension of this contract:
0-5%%Based on PPI or
CPI Index
CP! Index
Lowest Responsible Bidder
The lowest bid shall be the lowest total of the bid prices on the base contract. This total is being used for the purpose of
determining the lowest responsible bidder.
Quantities: Material quantities as specified are approximate based on previous years usage, and no
guarantee is implied that the exact amount will be purchased.
PAYMENT TERMS Net 30 D~cLIVERYARO: 3days
Delivery: Delivery terms shall be F.O.B, Destination, Freight Prepaid in accordance with the attached terms and
conditions.
(Si!
Stanley K Kinder(Print name)
Signature(s) must be the same as si,qnature(s) in Section I - Request for Quotation and Bidder Required information.
Signature(s):, f~. /
((S~I~ ture)/F.n Ki nde,o
(Print name)
CITY OF PALO ALTO RFQ 116742 PAGE 2 OF 2
BIDDER(COMPANY): SIERRA CHEMICAL COMPANY DATE: May 8, 2006
(Fill in name on each page)
SECTION I - REQUEST FOR QUOTATION (RFQ) AND BIDDER REQUIRED INFORMATION
Markinq instructions
All Bids!Quotations and accompanying documents shall be submitted in a sealed envelope. The outside of the envelope
shall be marked, and identified in the manner specified below:
Quotation Enclosed
Project Title: BULK CHLORINE AND SULFUR D!OX~DE (RFQ) number 116742
Bidder/Company name, and return address.
Complete, sign and submit the RFQ!Bidder Information, Nondiscrimination Certification, and Bidder Bid Pages with your
quotation. Failure to complete and/or submit these forms may cause rejection of your quotation. All quotations must be
submitted on these forms.
Bidder Information
Provide the information requested below or indicate "not applicable", if appropriate:
A.Name and Address of Bidder (Company) - also provide "Remit To" address if different:
SIERRA CHEMICAL CO.
2302 LARKIN CIRCLE
Telephone Number: 775-358 ~0888
E-Maih sierrachehn@qbis.co~n
B.Taxpayer Identification Number: 88- 0086174
Social Security Number if Sole Proprietorship:
C.Bidder is a:
~California Corporation
~Corporation organized under the laws of the State of
with head offices located at 2 3(3 2
and offices in California at 1 03.0
Limited Liability Company
List name of managing .member(s):
Facsimile number: 7 7 5 - 3 5 8 - 0 q S 7
Website::
Larkin Circle, Sparks, NV
INDUSTRIAL D~. ~ STOCKTON,
,or
89431
CA 9.52@6
Sole Proprietorship
Partnership
Limited Liability Partnership
¯ proprietor.
List names of general partners; state which partner or partners are managing partner(s)
Other (attach Addendum with explanatory details)
CITY OF PALO ALTO RFQ 116742 PAGE 3 OF 5
Rev. 01/15/04
BIDDER(COMPANY): SIERRA CHEMICAL COMPANY DATE: May 8, 2006
(Fill in name on each page)
-R_QU,RE,.,SEC~ =ON ~ REQUEST FOR QUOTATION (RFQ) AND BIDDER ~ ~ ~ INfORMATiON
Have you (or your firm) previously worked for the City of Paio Alto? ~--. yes,’or ~,- No 0f"Yes", list
above, or if necessary, provide information on additional sheets). ,4
Contractors license, number/type (if required):03-57894
Minority Business Enterprises:
Bidder is ___, or is not x a minority, or Women, or Disadvantaged Business Enterprise
Small Business Concern:
Bidder is X~, or is not ~a Small Business Concern
The Bidder represents that it has not retained a person to solicit or secure a City contract (upon an
agreement or understanding for a commission, percentage, brokerage, or contingent fee) except for
retention of bona fide employee or bona fide established commercial selling agencies for the purpose
of securing business.
During the Quotation process there may be changes to the Quotation documents, which would require
an issuance of an addendum or addenda. City disclaims any and al! liability for loss, or damage to any
Bidder who does not receive any addendum issued by City in connection with this RFQ. Any Bidder in
submitting a Quotation is deemed to waive any and all claims and demands Bidder may have against
City on account of the failure of delivery of any such addendum to Bidder. Any and all addenda issued
by City shall be deemed included in this RFQ, and the provisions and instructions therein contained
shall be incorporated to any Quotation submitted by Bidder.
To assure that all Bidders have received each addendum, the following acknowledgment and sign-off
i.s required. Failure to acknowledge receipt of an addendum/addenda may be considered an
]~egularib] in the Bid:
Addendum number(s) received: I--]1" [] 2; [] 3; [] 4; [] 5~’i"-] 6; [] 7; [] 8; [] 9
Or, []No Addendum/Addenda Were Received (check and initial).
Note:
The firm and individuals listed below, certify that: they do not and in the performance of this
contract they will not discriminate in employment of any person because of race, skin color,
gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status,
marital status, familial status, weight or height of such person; and further certify that they
are in compliance with all Federal, State and local directives and executive orders regarding
nondiscrimination in employment.
The City of Palo Alto, pursuant to Califomia Corporations Code Section 313, requires two corporate
officers to execute contracts. The signature of First Officer* must be one of the foflowing: Chairman of
the Board; President; or Vice President. The signature of the Second Officer*" must be one of the
following: Secretary; Assistant Secretary; Chief Financial Q#Tcer; or Assistant Treasurer. In the
alternative, a certified corporate resolution attesting to the signatory authority of the individuals signing
in their respective capacities is acceptable.
CITY OF PALO ALTO RFQ 116742
Rev. 01/15/04
PAGE 4 OF 5
BIDDER (COMPANY): ,SIERRA CHEMICAL COMPANY DATE: ~aY 8, 2006
(Fill in name on each page)
SECTION ~ - REQUEST FOR QUOTATION (RFQ) AND BIDDER REQUIRED INFORMATION
Signature must be the same signature as appears in Bidder Bid Pages:
First O]fficer"
(s~i
Stanley Ko Kinder
(Printed name of signatory)
Second Office
(Si.~
Fo Lynn ~inder
(Printed name of signatory)
President & CEO S~"~r~" Vice :pr.~id~n9
(Title of signatory)(Title of signatory)
Or,
The undersigned certifies that the Bidder is not a corporation, and is not subject to the requirements of
California Corporations code, and hereby agrees to, and accepts the terms and conditions of this RFQ.
(Signature)
(Printed name of signatory)
(Title of signatory)
CITY OF PALO ALTO RFQ 116742
Rev. 01/15/04
PAGE 5 OF 5
ATTACHMENT B
CERTIFICATION OF NOND]SCRIMINATION
BULK CHLORINE AND SULFUR DIOXIDE
Certification of Nondiscrimination:
Certification of Nondiscrimination: As suppliers of goods and/or services to the City of Paio Alto in excess
of $5,000, the firm, contractor or individual(s) listed below certifb, that: they do not and in the performance of
this contract they will not discriminate in employment of any person because of race, skin color, gender, age,
religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status,
weight or height of such person; and further certify that they are in compliance with all Federal, State and local
directives and executive orders regarding nondiscrimination in employment.
Firm:
Title of Officer S!.g_n.ing:
Signature:
DATE: Ma~ 8, 2006
CITY OF PALO ALTO RFQ 116742
Rev. 04/05
PAGE 1 OF 1