Report Prepared by: Bill Osmer, PWM Wastewater, Public Works Department
Title
SUBJECT: Award Bid and Approval of Services Agreement with Thatcher Company of California, Inc., for the Purchase and Delivery of Sodium Hypochlorite to the Wastewater Treatment Facility in an Amount not to Exceed $496,178 Through June 20, 2027
REPORT IN BRIEF
Considers awarding the bid and approving a Services Agreement with Thatcher Company of California, Inc., for the purchase and delivery of sodium hypochlorite for the Wastewater Treatment Facility, Water, and Facilities Maintenance departments.
RECOMMENDATION
City Council - Adopt a motion:
A. Awarding the bid and approving a Services Agreement with Thatcher Company of California, Inc., for the purchase and delivery of sodium hypochlorite to the Wastewater Treatment Facility in an amount not to exceed $496,178 through June 20, 2027; and,
B. Authorizing the City Manager to execute the 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-eight thousand dollars ($38,000.00), 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 FY 25/26 Proposed Budget.
DISCUSSION
The Wastewater Treatment Plant (WWTP) uses sodium hypochlorite to treat wastewater, the Water Division uses sodium hypochlorite in the disinfection of drinking water, and the Facilities Division uses sodium hypochlorite in the disinfection of the McNamara & Ada Givens pools.
Staff prepared bid specifications for Sodium Hypochlorite characteristics, estimated usage and delivery criteria, and the invitation for bids was advertised both in the Merced County Times newspaper and the City’s website. Bids were publicly opened on March 18, 2025, at 2:00 p.m., with the following results:
|
Northstar Chemical |
Withdrew Bid |
|
Univar Solutions |
$ 3.39 per gallon, pre-tax (year 1) |
|
|
Not Provided (year 2) |
|
Thatcher Company of California, Inc. |
$ 3.31 per gallon, pre-tax (year 1) |
|
|
$ 3.40 per gallon, pre-tax (year 2) |
Thatcher Company of California, Inc., was the lowest acceptable bid for sodium hypochlorite at $3.31 per gallon pre-tax (year one price), $3.59 per gallon with tax included. Year two price is $3.40 per gallon pre-tax, $ 3.68 per gallon with tax included.
The chart below outlines the average chemical usage and estimated yearly amount (includes sale and use tax).
Year one:
|
|
WWTP |
Water |
Facilities |
|
|
Gallons |
Cost |
Gallons |
Cost |
Gallons |
Cost |
|
Sodium Hypochlorite |
10,250 |
$36,798 |
50,000 |
$179,500 |
8,000 |
$28,720 |
Year two:
|
|
WWTP |
Water |
Facilities |
|
|
Gallons |
Cost |
Gallons |
Cost |
Gallons |
Cost |
|
Sodium Hypochlorite |
10,250 |
$37,720 |
50,000 |
$184,000 |
8,000 |
$29,440 |
Staff recommends awarding the bid to Thatcher Company of California, Inc., for the supply and delivery of sodium hypochlorite (attachment 1).
IMPACT ON CITY RESOURCES
Funding is included in the FY 2025/26 proposed budget within Fund 6000-Wastewater System, Fund 6001-Water System and Fund 7007-Facilities Maintenance.
ATTACHMENTS
1. Services Agreement
2. Thatcher Company of California, Inc. Bid
3. Univar Solutions Bid