HomeMy WebLinkAbout05 - Approval of Purchase Order for the Purchase and Delivery of Sodium HypochloriteQ �EwPpRT
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CITY OF
NEWPORT BEACH
City Council Staff Report
July 25, 2023
Agenda Item No. 5
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Mark Vukojevic, Utilities Director - 949-644-3011,
mvukojevic@newportbeachca.gov
PREPARED BY: Joshua Rosenbaum, Senior Management Analyst,
josenbaum@newportbeachca.gov
PHONE: 949-644-3011
TITLE: Approval of Purchase Order for the Purchase and Delivery of Sodium
Hypochlorite
ABSTRACT:
The Utilities Department administers the disinfection of the City of Newport Beach's
(City's) drinking water supply. The main component of the disinfection is sodium
hypochlorite (commonly referred to as chlorine). Following a Request for Bids process,
the Utilities Department recommends that the City Council approves a purchase order for
the purchase and delivery of sodium hypochlorite with JCI Jones Chemical, Inc.
RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly;
and
b) Authorize the City Manager to approve a purchase order for the purchase and delivery
of sodium hypochlorite from JCI Jones Chemical, over the current and next two fiscal
years, up to a total amount of $750,000.
DISCUSSION:
Liquid sodium hypochlorite, a chlorine product, is used to disinfect the City's drinking
water supply prior to entering the water distribution system. Licensed staff members from
the Utilities Department use highly sensitive equipment and analyzers to measure, dose
and monitor the liquid sodium hypochlorite amounts to specific set point parameters. The
water is then retested by a laboratory at 30 different locations throughout the water
distribution system. Approximately 100,000 to 120,000 gallons of sodium hypochlorite are
used annually.
On December 13, 2022, the City Council approved a budget amendment to increase the
Water Fund's appropriation for the purchase of sodium hypochlorite, as the price of the
commodity doubled during that year. The cost increases stemmed from higher energy,
transportation, raw material, and inflationary costs associated with producing the chlorine
products. Although the situation has stabilized, there are ongoing concerns regarding
chlorine production and product availability in the United States.
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Approval of Purchase Order for the Purchase and Delivery of Sodium Hypochlorite
July 25, 2023
Page 2
The City issued a formal Request for Bids (RFB) solicitation for qualified companies to
provide the City with bulk quantities of sodium hypochlorite. RFB23-74 was posted on the
City's public procurement system (PlanetBids online portal) on June 8, 2023, with bids
due on June 29, 2023. The City received two bids and the results of the cost proposals
are as follows:
RANK
VENDOR
COST PER GALLON OF
SODIUM HYPOCHLORITE
1
JCI JONES CHEMICAL INC
$1.7519 per gallon
2
OLIN CORPORATION
$2.19 per gallon
JCI Jones Chemical, Inc., (JCI) has submitted the lowest responsible bid. JCI has a facility
in Torrance, California and has provided water treatment chemicals and related products
within California for over 60 years. Furthermore, the company has supplied sodium
hypochlorite for water treatment to several Southern California water agencies. The
company's products meet all of the industry standards as required by the City's
specifications. Staff also believes, with the size of the company, its employees'
experience and references, JCI will be able to source and deliver sodium hypochlorite to
the City even during limited supply conditions. Utilities staff recommends the approval of
a purchase order with JCI Jones Chemical, Inc., for the purchase and delivery of sodium
hypochlorite.
FISCAL IMPACT:
The adopted budget includes sufficient funding for this purchase. The purchase of sodium
hypochlorite will be expensed to the Water Enterprise Fund's Treatment Chemical
account in the Utilities Department, 7019052-841018. Depending on the amount of water
produced by the City, the Utilities Department estimates spending approximately
$225,000 a year based on current bid pricing. The total purchase order cost includes
contingencies for production and for wholesale price volatilities and inflationary factors in
future years.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment)
and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
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