Report Prepared by: Jeffrey Silva, WWTF Operations Supervisor
Title
SUBJECT: Award Bid and Approval of the Purchase of Supplies as Necessary with Momar, Inc., for the Supply and Delivery of Crude Glycerin for the Wastewater Treatment Plant in the Amount not to Exceed $180,000 Through June 30, 2024
REPORT IN BRIEF
Considers awarding the bid and approving the purchase of crude glycerin for the Wastewater Treatment Plant for Fiscal Year 2023/2024.
RECOMMENDATION
City Council - Adopt a motion:
A. Awarding the bid and approving purchases up to $180,000 with Momar, Inc., through June 30, 2024; and,
B. Authorizing the City buyer to issue the purchase order.
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; 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), the “contract threshold”, shall be made by the purchasing supervisor by written contract with the lowest responsible bidder.
CITY COUNCIL PRIORITIES
As provided for in the 2023-24 Adopted Budget.
DISCUSSION
The Wastewater Treatment Plant (WWTP) has an effluent permit limit for Nitrate plus nitrite of 14 mg/L (milligrams per liter) average weekly and a monthly average of 10 mg/L. To meet the required NPDES permit limit, crude glycerin is added to the aeration basin to reduce the nitrates in the plant effluent. Without glycerin addition the effluent, nitrogen concentration would be above 40 mg/L.
The City of Merced advertised bids for crude glycerin in both the Merced County Times newspaper and the City’s website. Bids were publicly opened on April 25, 2023, with bids received from Crimson Renewable Energy for $0.16 per pound, Momar, Inc for $0.25 per pound, Environmental Operating Solutions Inc. $0.34 per pound, and TR International Trading Company $0.395 per pound.
Crimson Renewable’s bid was disqualified for not submitting a certificate of analysis, product bulletin, typical properties, and safety data sheet as required in the Request for Bid section VII. B. We have also had problems in the past with the product from Crimson causing pump damage and Plant Upsets from the Matter Organic Non-Glycerol (MONG) in the loads received.
Momar, Inc., was selected with a winning bid of $.25 per pound delivered for having the lowest acceptable bid.
Staff recommends awarding the bid and authorizing the City Buyer to issue the purchase order for continued use of crude glycerin.
IMPACT ON CITY RESOURCES
No appropriation of funds is needed. Funding is available within the Fiscal Year 2023-24 budget.
ATTACHMENTS
1. Momar Bid