REPORT TO COUNCIL
SUBJECT
Title
Action to Authorize the City Manager to Execute Agreements with Northstar Chemical dba Pacific Star Chemical, LLC and Univar Solutions USA, LLC for the Supply and Delivery of Bulk Chemicals to Silicon Valley Power, With a Total Combined Maximum Compensation Not-to-Exceed $2,292,000, Inclusive of All Option Years
Report
BACKGROUND
Silicon Valley Power (SVP), the City of Santa Clara's electric utility, operates two power generation plants. At the Donald Von Raesfeld (DVR) Power Plant, safe and efficient operations depend on properly treated water systems. To support these operations, SVP uses bulk chemicals to treat water and prevent corrosion and scaling in boilers, condensers, and cooling systems. Due to the high temperatures and pressures associated with power plant operations, the use of these chemicals is a common industry practice for maintaining and protecting plant equipment, including at SVP facilities. The City of Santa Clara (City) has historically procured these bulk chemicals on an ongoing basis, and continued agreements for their supply and delivery are necessary to ensure uninterrupted operations at SVP facilities.
This report addresses the purchase of three bulk chemicals, as summarized in Table 1 below.
Table 1: Summary of Bulk Chemicals and Estimated Annual Usage.
Bulk Chemical
Estimated Annual Usage
Sodium Hydroxide Caustic 30%
3 Dry Tons
Sodium Bisulfite 25%
3,500 Gallons
Sodium Hypochlorite 12.5%
35,000 Gallons
DISCUSSION
Pursuant to City Code Section 2.105.140(d) of the Santa Clara City Code (City Code), a formal Request for Bids (RFB) was conducted with the award recommendation based on the lowest responsive and responsible bid. The RFB for the supply and delivery of bulk chemicals was published on the City's e-procurement system. A total of 55 companies viewed the RFB and three bids were received by the submittal deadline from the following firms:
* Mar Vista Resources, LLC (Mar Vista Resources)
* Nor...
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