Report Prepared by: Johnnie Baptista, Public Works Manager - Water Department
Title
SUBJECT: Approval of a Second Amendment to Agreement for Supplies and Services with Univar Solutions USA, Inc., in the Amount of $150,000 for the Supply and Delivery of Sodium Fluoride for the Contract Period Ending June 30, 2024
REPORT IN BRIEF
Considers approving a second amendment with Univar Solutions USA, Inc., in the amount of $150,000 for the supply and delivery of sodium fluoride through June 30, 2024.
RECOMMENDATION
City Council - Adopt a motion
A. Approving a Second Amendment to Agreement for Supplies and Services with Univar Solutions USA, Inc., for the purchase of sodium fluoride in the amount not to exceed $150,000 for the contract term ending June 30, 2024; and,
B. Authorizing the City Manager or Deputy City Manager to execute any necessary documents.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions other than recommended by staff (identify specific findings and/or conditions amended to be addressed in the motion); or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items (specific items to be addressed in the motion); or,
5. Continue to a future meeting (date and time to be specified in the motion).
AUTHORITY
Charter of the City of Merced, Article XI, Section 1111-Competitive bidding, and Merced Municipal Code Chapter 3.04, Article III - the purchase of materials, supplies, equipment, and contractual services of an estimated value greater than thirty-six thousand dollars ($36,000.00), the "contract threshold," shall be made by the purchasing supervisor by written contract with the lowest responsible bidder.
The Public Works Water Division fluoridates the drinking water as a matter of compliance with Title 22, Chapter 15, Article 4.1, CCR.
CITY COUNCIL PRIORITIES
As provided for in the FY 23-24 Adopted Budget.
DISCUSSION
On May 17, 2021, Council approved an agreement with Univar Solutions USA, Inc., (Univar) for the supply and delivery of Sodium Fluoride for the contract term ending June 30, 2022, with the option to extend for two one-year periods through June 30, 2024.
The original contract included pricing for the potential year 2 ($1.35/lb) and 3 ($1.49/lb) extension terms. However, due to global economic conditions and supply chain failure, the vendor was unable to honor this pricing. A First Amendment was approved by Council on August 1, 2022, with a revised pricing of $2.15/lb through June 2023.
Univar has reduced their unit pricing to $1.89/lb through June 2024. Staff is requesting to approve the Second Amendment for the 2023/2024 Fiscal Year.
IMPACT ON CITY RESOURCES
No appropriation of funds is needed at this time. Funding for this agreement is included in the Water Enterprise Fund 6001-6060.
ATTACHMENTS
1. Second Amendment
2. First Amendment
3. Original Contract