17-0620_OLIN CORPORATON_E17_Agenda ReportTO:
FROM:
City of San Juan Capistrano
Agenda Report .
Honorable Mayor and Members of the City Council
~n Siegel, City Manager
SUBMITTED BY: Steve May, Public Works & Utilities Director ,LMA.._
PREPARED BY: Noreen Swiontek, Senior Management Analyst
DATE: June 20, 2017
6/20/2017
E17
SUBJECT: Consideration of Award of Purchase Agreements for Supply and
Delivery of Chemicals for Water Treatment
RECOMMENDATION :
By motion, approve and authorize the City Manager to execute two-year purchase
agreements with the following four firms for the purchase and delivery of chemicals for
the City's water system treatment process: Chemrite Inc.; Brenntag Pacific Inc.; King
Lee Technologies; and Olin Corporation.
DISCUSSION/ANALYSIS:
The Utilities Department uses chemicals in various locations throughout the water
system and predominately at the Groundwater Recovery Plant (GWRP). The current
agreements for chemical supplies will expire at the end of this fiscal year. A Request for
Proposals (RFP) (Attachment 1) for supply and delivery of the needed chemicals was
posted on the City 's website and distributed to sixteen companies. Proposals were
received from eight companies. Staff reviewed the proposals and tabulated the
proposed pricing in Attachment 2. Based on a review of all the information, staff
recommends awarding Purchase Agreements to the companies with the lowest price for
each chemical. Following is a list of the companies and the chemical or chemicals for
which they presented the lowest pricing proposals:
• Chemrite Inc. for Corrosion Inhibitor and Sodium Permanganate 20%
• Brenntag Pacific Inc . for Aqueous Ammonia 19%, Citric Acid 50%, Sodium
Hydroxide 50%, and Sodium Metabisulfite 25%
• King Lee Technologies for Pretreat Plus Y2K and Pretreat Plus 0400
• Olin Corporation for Sodium Hypochlorite 12.5%
City Council Agenda Report
June 20, 2017
Page 2 of 3
The proposals are for non-exclusive, two year terms, with fixed pricing for this term.
Proposers were only required to propose on chemical items that they have the
qualifications and resources to supply. Staff recommends award of Purchase
Agreements to the four qualified suppliers noted above to provide the nine specified
chemicals.
FISCAL IMPACT :
The proposed Purchase Agreements would be limited to the approved budget for Water
Operations and GWRP Operations. This competitive bidding process yielded pricing
that is, on the average, 2.2% less than current contract pricing. It is estimated that there
will be an annual savings of $6,760 for each the two years of these chemical purchase
agreements. In Fiscal Year 2017-2018, the Utilities Department has budgeted $300,620
for chemical supplies.
ENVIRONMENTAL IMPACT :
This action is not subject to the California Environmental Quality Act ("CEQA") pursuant
to Section 15060(c)(3) of CEQA Guidelines because the activity is not a project as
defined in Section 15378 of the CEQA Guidelines, California Code of Regulations, Title
14, Chapter 3, and the activity has no potential for resulting in physical change to the
environment, directly or indirectly.
PRIOR CITY COUNCIL REVIEW:
No prior City Council review.
COMMISSION REVIEW AND RECOMMENDATIONS :
On June 20, 2017, the Utilities Commission will review this item at its regular 8:00a.m.
meeting. Should the Utilities Commission have comments other than recommending
award of the Purchase Agreements as recommended in this report, staff will present
that information to the City Council at its June 20, 2017, meeting.
NOTIFICATIONS :
Utilities Commission
King Lee Technologies.
Brenntag Pacific Inc.
Chemrite Inc.
Olin Corporation
Waterline Technologies
JCI Jones Chemicals
Shannon Chemical
PVS Minbulk Inc.
Univar USA Inc.
City Council Agenda Report
June 20, 2017
Page 3 of 3
ATIACHMENTS :
Attachment 1 -Chemical Supply & Delivery Request for Proposals
Attachment 2 -RFP Proposals Summary
32400 PASEO ADEL ANTO
SAN JUAN CAPISTRANO, C A 92675
(949) 493-1171
(949) 493·1 053 FAX
1\'\1'\I ' . .I'OIIj iiWU '(IfliSirc//lfi OIX
May 18,2017
MEMI!ERS OF T11E CITY COUNCIL
SERGIO FARIAS
KERRY K . FERGUSON
BRIAN l. MARYOTT
PAM PATTERSON , ESQ .
DEREK REEVE
Re: Request for Proposal (RFP) for Chemical Delivery and Supply Addendum# 1
Interested Suppliers and Proposers;
Based upon questions received after receipt of the RFP, the City of San Juan
Capistrano has prepared this addendum to formally address these questions. Below are
the questions received thus far, and the City's response. In addition, the City has
revised the RFP documents and has enclosed them with this letter.
1. Question: What is the typical volume for delivery orders placed for the specified
chemicals?
Answer: Please reference page 1 of the RFP in which the specified chemical
tank sizes are outlined. As stated, the City has an internal policy to place orders
when the chemical tanks are fifty (50) percent full. The annual estimated
quantities are outlined in the RFP under Chemical Specifications and on the
Proposal Documents.
2. Question: Who is the City's current provider for the specified chemicals and what
are the prices per gallon the City is currently paying?
Answer: Attached is a copy of the current Supplier Agreements and pricing.
3. Question: Will there be a public opening of the proposals?
Answer: This is a RFP, not a formal construction bid therefore, a public opening
of the proposals will not occur.
Page 1 of 2
ATTACHMENT 1
Page 1 of 23
City of San Juan Capistrano
RFP Addendum -Water Treatment Chemical Supply and Delivery
4. Question: Will there be an opportunity to . review the Groundwater Recovery Plant
(GWRP) chemical bays, fill stations, and delivery area?
Answer: Interested Suppliers may visit the GWRP at 324 70 Paseo Adelanto,
San Juan Capistrano, CA 92675, on Monday, May 22, 2017, at 10:00am.
5. Question: Is it possible to obtain the previous year's bid tabulation?
Answer: The previous bid was conducted in 2012. Bids results are attached.
6. Question: The antiscalant listed on RFP is a proprietary product. Will you accept
comparable products?
Answer: A correction to the Chemical Specification items (i) and U) is included in
the revised attached RFP Documents. The antiscalants are proprietary products
of King Lee Technologies. The King Lee products are specific to the City's
membrane maintenance procedures and have undergone extensive testing to
standardize the treatment procedures. The City will not consider alternate
products.
Should you have any further questions please submit them by email
to nswiontek@sanjuancapistrno.org . Thank you for your interest in the City of San Juan
Capistrano.
Regards,
Noreen Swiontek
Senior Management Analyst
Attachments:
1 . Revised RFP Documents
2. Current Supplier Agreements
3. Summary of previous Chemical bid results .
ATTACHMENT 1
Page 2 of 23
CITY OF SAN JUAN CAPISTRANO
REQUEST FOR PROPOSALS FOR WATER TREATMENT
CHEMICAL SUPPLY AND DELIVERY
REQUEST FOR PROPOSAL (RFP) POSTING DATE: May 8, 2017
PROPOSAL SUBMISSION DEADLINE: May 30,2017, 4:30pm
GENERAL INFORMATION
The City operates a 6.2 million gallons per day (MGD), approximately 3,500 acre feet
per year, Groundwater Recovery Plant (GWRP) and treating brackish groundwater, by
removing iron, manganese, and lowering dissolved solids (TDS) using reverse osmosis
to make it suitable for potable water uses.
The City of San Juan Capistrano is seeking proposals for Water Treatment Chemical
Supply and Delivery service for use at its Groundwater Recovery Plant. Products must
meet or exceed the current American National Standards lnstitute/AWWA minimum
standards for Drinking Water Treatment Chemicals. The City requires all supplied
goods to carry NSF 60 certification. "NSF" shall be stamped directly on the delivery
paperwork. The City has an internal policy to place orders when the chemical tanks are
fifty (50) percent full. The specified chemical tank sizes are as follows:
• Antiscalant: 858 gallons
• Caustic soda: 2528 gallons
• Ammonia: 1000 gals
• Sodium Permanganate: 1400 gals
• Sodium Bisulfite: 2500 gals
• Sodium Hypochlorite: 4500 gals
• Corrosion Inhibitor (Aquapure 3655): 1400 gals.
Proposals are due by 4:30pm, May 30, 2017, after which the City will evaluate the
proposals and finalize a selection in June 2017. Implementation of services is
anticipated July 1, 2017. It is the intent of the City to issue a non-exclusive agreement
for a two (2) year term with pricing locked in for this term, with the option if agreed upon
by both parties for three (3) additional one-year periods
Page 1 of 6
ATTACHMENT 1
Page 3 of 23
City of San Juan Capistrano
RFP -Water Treatment Chemical Supply and Delivery
INSTRUCTIONS TO PROPOSERS
RECEIPT AND OPENING OF PROPSALS
The City of San Juan Capistrano requests proposals from qualified suppliers for water
treatment chemical supply and delivery to the City of San Juan Capistrano's
Groundwater Recovery Plant. Proposals will be received in the Utilities Department by
the time specified above.
Envelopes containing the proposals (one original and three signed copies), must be
marked "Water Treatment Chemical Supply & Delivery" and must show the Proposer's
name and address. Envelopes must be sealed and addressed to:
City of San Juan Capistrano Utilities Department
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Attention: Noreen Swiontek, Senior Management Analyst
Any proposal received after the established closing date and time will not be accepted
and will be returned to the Proposer unopened. Postmarks will not validate proposals
that arrive after the cut-off time listed above. Faxed or electronic proposals will not be
accepted. Proposals may be withdrawn upon written request at any time prior to the
established closing date and time.
Please contact Noreen Swiontek, Senior Management Analyst, at (949) 487-4307
or nswiontek@sanjuancapistrano.org should you have any questions.
The City may choose to reject any and all proposals. The City may seek any
clarification or additional information from respondents. The City will assess proposals
based on qualifications, experience, availability and "best fit" for the project.
Be advised that all information contained in proposals submitted in response to this
solicitation may be subject to the California Public Records Act (Government Code
Section 6250 et seq.), and information's use and disclosure are governed by this Act.
EXAMINATION OF REQUIREMENTS
Each Proposer must carefully examine the requirements contained herein and specified
in the sample Agreement for Purchase of Chemicals (Attachment 2). Please refer to the
sample Agreement for Purchase of Chemicals for insurance requirements and detailed
safety, inspection, and compliance requirements that may not be fully covered in this
RFP. The terms of the Agreement for Purchase of Chemicals cannot be modified and
will not be negotiated. Upon receipt of responses hereunder, each Proposer shall be
thoroughly familiar with all requirements contained herein and within the Agreement.
The failure or omission to examine any form or document shall in no way relieve a
Page 2 of 6
ATTACHMENT 1
Page 4 of 23
City of San Juan Capistrano
RFP -Water Treatment Chemical Supply and Delivery
Proposer from any obligation in respect to this proposal as submitted. Any
misinterpretation of the requirements is solely that of the Proposer.
The Prospective Supplier shall comply with all applicable federal, state and local laws,
ordinances, regulations and codes and shall obtain and maintain throughout the term of
the contract, all required permits, certificates and licenses, including a City of San Juan
Capistrano's business license.
PREPARATION OF PROPOSAL
Each proposal must be submitted on the prescribed "Proposal Documents"
(Attachment 1 ). Proposers are not required to respond to all chemical items, only to
those that they have the qualifications and resources to supply. All blank spaces for
price proposals must be filled in by ink or typewritten. Items not selected for proposal,
shall have that item's blank space filled in as "Not Applicable or N/A". The unit price
($/weight of chemical) shall be fixed for years one and two. The unit price ($/weight of
chemical) may be adjusted during the remaining term of the Agreement, if such
adjustment is noted in the original price quotation/proposal, along with backup
documentation, and agreed upon by the City. Except where otherwise noted on the
proposal, the unit price shall be based on the price per weight or volume of actual active
chemical. All items will be construed as complete and prices shown shall be the
proposed prices for all equipment, labor, materials and services required by this RFP
and Purchasing Agreement. Separate charges for permit fees, regulatory compliance,
taxes, fuel, cleanup will not be accepted. These and all other costs shall be included in
the unit price.
The proposal must be signed and dated in ink by the owner, partner, or corporate officer
of the company or by an agent duly authorized to represent the Prospective Supplier
under this proposal. Include the name and position held within vendor's organization.
The proposer may request release from the proposal if the request is made, in writing,
within five calendar days after the RFP deadline. Proposer may include any other
information they deem necessary and not included in this Request for Proposal.
ADDENDA AND INTERPRETATION
All Prospective Suppliers must register a designated point of contact for communication
by email. Addenda will be sent via email. No interpretation of the meaning of the
specifications or other proposal documents will be made to any Proposer orally. Every
request for such interpretation must be in writing and emailed to: Noreen Swiontek,
Senior Management Analyst, at nswiontek@sanjuancapistrano.org . To be given
consideration, a request must be received at least seven (7) days prior to the date fixed
for the closing of the RFP. Any and all such interpretations and any supplemental
instructions will be in the form of written addenda which, if issued, will be emailed no
later than five (5) calendar days prior to the date fixed for the closing of the RFP. The
City reserves the right to delay the proposal due date. Failure of any Proposer to
Page 3 of 6
ATTACHMENT 1
Page 5 of 23
City of San Juan Capistrano
RFP -Water Treatment Chemical Supply and Delivery
receive any such email addendum or interpretation shall not relieve such Proposer from
any obligation under this Proposal as submitted. All addenda so issued shall become
part of the specifications and contract documents.
AWARD OF CONTRACT
The award of an Agreement for Purchase of Chemicals will be made to a responsive
and responsible Prospective Supplier or a Prospective Supplier who 's proposal best
meets the needs of the City .. The City will be reviewing each proposal item separately
and awarding Agreements on each proposal item separately. Where a single Proposer
has been selected for multiple items, a single Agreement will be executed between _the
City and the Prospective Supplier.
The successful Prospective Supplier or Prospective Suppliers will enter into an
agreement with the City incorporating all prescribed requirements and conditions of this
RFP and purchase agreement terms. The City shall be the sole judge as to the
successful Prospective Supplier. Before award, Proposers may be required to furnish
evidence of capability, equipment, and financial resources to adequately perform the
job. Prior to issuance of a Notice to Proceed or first delivery , the successful Prospective
Supplier will be required to submit a copy of a City of San Juan Capistrano's business
license and certificates of insurance and endorsements as required.·
DISCRETION TO AWARD
The City shall have full discretion to determine the responsiveness of each proposal and
the responsibility of each Proposer and may reject any proposal or all proposals
because of an improper or non-responsive proposal, a non-responsible Proposer,
because the project becomes infeasible, or for any other reason, and make no award · at
all. This RFP does not commit the City to award an agreement, or to procure or contract
for services or goods.
EXECUTION OF CONTRACT
The City will mail a Notice of Award, enclosing the Agreement for Purchase of
Chemicals forms to the successful Prospective Supplier or Prospective Suppliers. The
Agreement shall be signed by the successful Prospective Supplier or Prospective
Suppliers and returned with a copy of the vendor's City of San Juan Capistrano's
business license and required certificates of insurance and endorsements, within seven
calendar days after the Prospective Supplier or Prospective Suppliers receives the
Notice of Award.
SPECIAL PROVISIONS FOR CHEMICAL SUPPLY & DELIVERY
Please refer to the Purchase Agreement for details related to delivery, supply, safety
compliance, etc.
Page 4 of 6
ATTACHMENT 1
Page 6 of 23
City of San Juan Capistrano
RFP -Water Treatment Chemical Supply and Delivery
CHEMICAL SPECIFICATIONS :
a. Aauaoure 3655 25mg/l max: Estimate quantity is 5,000 gallons. All aquapure
3655 chemical shall be suitable for water treatment and meet NSF 60
requirements. Delivery by bulk tank.
b. Aqua Ammonia (Liquid Ammonium Hydroxide) 19%: Estimated ·annual quantity is
4,000 gallons. Aqua ammonia shall comply with ANSI/AWWA Standard B306-07
or most current standard. Delivery by bulk tank.
c. Citric Acid 50%: Estimated annual quantity is 1,800 gallons. The citric acid shall
be commercial grade, and shall comply with ANSI/AWWA Standard B301-99 or
most current standard. Delivery by 50 gallon drums.
d. Hydrogen Peroxide 50%: Estimated annual quantity is 2,000 gallons. Solution
shall be suitable for water treatment. Product shall be NSF approved for drinking
water applications and meet NSF/ANSI Standard 60 Drinking Water Additives-
Health Effects. Delivery by 50 gallon drums.
e. Sodium Hydroxide {Caustic Soda) 50%: Estimated annual quantity is 45,000
gallons. Solution shall be suitable for water treatment. Sodium hydroxide shall
comply with ANSI/AWWA Standard B501-08 or most current standard. Delivery
by bulk tank.
f. Sodium Hvoochlorite (Bleach) 12.5%: Estimated annual quantity is 90,000
gallons. Solution should be approximately 12.5% by weight (NaOCI), and shall
comply with ANSI/AWWA Standard B300-10, or its latest revision or addenda.
g. Sodium Metabisu lf ite (Bisulfite) 25%: Estimated annual quantity is 50,000
gallons. Solution shall be suitable for water treatment. Sodium Metabisulfite
(Bisulfite) shall comply with ANSI/AWWA Standard B601-11 or most current
standard. Delivery by bulk tank.
h. Sodium Permanganante 20%: Estimated annual quantity is 15,000 gallons.
Solution shall be suitable for water treatment. Sodium Permanganante shall
comply with ANSI/AWWA Standard B603-03 or most current standard. Delivery
by bulk tank.
i. Antiscalant ....: King Lee Pretreat Plus Y2K Liquid: Estimated annual quantity is
7,000 gallons or 64,000 pounds. The antiscalants are proprietary products of
King Lee Technologies. The King Lee products are specific to the City's
membrane maintenance procedures and have undergone extensive testing to
standardize the treatment procedures. The City will not consider alternate
products.
Page 5 of 6
ATTACHMENT 1
Page 7 of 23
City of San Juan Capistrano
RFP -Water Treatment Chemical Supply and Delivery
j. Antiscalant -King Lee Pretreat Plus 0400: Estimated annual quantity is three 55
gallon drums. The antiscalants are proprietary products of King Lee
Technologies. The King Lee products are specific to the City's membrane
maintenance procedures and have undergone extensive testing to standardize
the treatment procedures. The City will not consider alternate products.
QUANTITY:· Exact quantities may vary from the estimates given, and may be increased
or decreased to meet agency's requirements. No minimum is guaranteed.
INVOICE: Separate invoices shall be provided for each delivery.
ATTACHMENTS:
1 . Proposal Documents
2. Sample Agreement to Purchase Chemicals
Page 6 of 6
ATTACHMENT 1
Page 8 of 23
PROPOSAL DOCUMENTS FOR CHEMICAL SUPPLY & DELIVERY
Sealed proposals shall be enclosed in an envelope clearly marked with Suppliers name,
address, arid "Water Treatment Chemical Supply & Delivery" Request for Proposal.
Proposals may be mailed or delivered to:
City of San Juan Capistrano, Utilities Department
Attention: Noreen Swiontek, Senior Management Analyst
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Proposals must be received by: 4:30 p.m. on Tuesday, May 30, 2017.
The proposal submitted by the undersigned declares:
1 . That he/she has read the instructions, terms & conditions, and specifications of
this RFP and has abided by and agreed to the conditions herein and do hereby
propose to provide materials and services required in the amounts listed in the
Chemical Description and Prices.
2, That this proposal is genuine, and not sham or collusive, nor made in the interest
of, or on behalf of any person not herein named, and that the bidder has not
directly or indirectly induced or solicited any other proposer to put in a sham bid,
or caused any other person, firm, or corporation to refrain from submitting a
proposal, and that the proposer has not in any manner sought by collusion to
secure an advantage over any other proposer.
3. That the addenda, if issued, relating to this RFP have been received and are
acknowledged.
I certify and declare under penalty of perjury that the foregoing is true and correct
and I am an authorized agent to submit this bid.
Supplier's Signature: _______________ Date: ______ _
Print Name & Title:-------------------------
Business Name:--------------------------
Business Address:-------------------------
Telephone No : ___________ Fax No . ____________ _
Federal Taxpayer Identification Number:-----------------
California Contractor's License No: _________ Expiration Date: ___ _
Classification:---------------------------
Page 1 of 3 Proposal Documents
Attachment 1
ATTACHMENT 1
Page 9 of 23
CHEMICAL DESCRIPTION & PRICES:
Approximate
Annual Unit Price Unit Price Unit Price Unit Price
Quantity Per Gallon Per Gallon Per Gallon Per Gallon
Chemical (gallons) Year 1 & 2 Year3 Year4 YearS
Corrosion Inhibitor* 5,000
Aqua Ammonia (Liquid
Ammonium Hydroxide)
19% 4,000
Citric Acid 50% 1,800
Hydrogen Peroxide
50% 2,000
Sodium Hydroxide
(Caustic Soda) 50% 45,000
Sodium Hypochlorite
(Bleach) 12.5%: 90,000
Sodium Metabisulfite
(Bisulfite) 25% 50,000
Sodium Permanganante
20% 15 ,000
7,000 gallons
Antiscalant -King Lee or 64,000
Pretreat Plus Y2K liquid pounds
Antiscalant -King Lee
Pretreat Plus 0400 165
Supplier's Signature : ______________ Date : _____ _
Print Name & Title: -----------------------
Page 2 of 3 Proposal Documents
Attachment 1
ATTACHMENT 1
Page 10 of 23
REFERENCES:
List at least four (4) Contracts of a similar type, either currently held or held within the
past 36 months.
From to City/Company Contact Person Contract Amount
Supplier's Signature:---------------Date : _____ _
Print Name & Title : -------------------------
Page 3 of 3 Proposal Documents
Attachment 1
ATTACHMENT 1
Page 11 of 23
AGREEMENT FOR
PURCHASE OF CHEMICALS
.. 1 • ' • .. ~'. ·: ', I ;' : ', ' . I j
THIS AGREEMENT FOR PURCHASE OF CHEMICALS (hereinafter referred ·· to
as "Agreement") is made and entered into this . . ·day of June, 2017, ·by and i .,, ;,
between CITY OF SAN JUAN CAP ISTRANO , (here inafte r referred to as "City"), and
[INSERT VENDOR NAME] (herei.nafter referred to as "Supp!ier").
RECITALS
A. City is a public agency of the State of California and operates, among
other facilities a Groundwater Recovery Plant (hereinafter referred to as
"GWRP").
B. City desires Supplier to provide [INSERT CHEMICAL NAMES] to City for
use at its Groundwater Recovery Plant.
C. Supplier is duly lic~nsed and has the necessary qualifications to fulfill the
obligations set forth herein.
D. The parties desire by this Agreement to establish the terms for City to
purchase and acquire the goods specified herein.
AGREEMENT
NOW, THEREFORE, IT IS AGREED AS FOLLOWS:
1. Agreement Duration. This Agreement shall commence on July 01, 2017,
and shall be in effect up to and including June 30, 2019, with an option, if
agreed upon by both parties, for three additional one-year terms.
2. Method of Ordering.
2.1 Supply a nd Purchase of Goods. [INSERT CHEMICAL NAMES]
supplied and . purchased under this Agreement ("Goods") shall be
in compliance with the most current ANSI/AWWA standard for
each chemical listed.
2.2 Request for Delivery. On an as needed basis, City shall submit to
Supplier a confirmed request for delivery of specific Goods,
consistent with contact information provided in Paragraph 15.
3. Price. Price for Goods supplied under this Agreement shall be in
accordance with Supplier's quotation, attached hereto and incorporated by
reference herein as Exhibit "A." The unit price ($/weight of chemical) shall
be fixed as set forth in Exhibit "A." Notwithstanding the preceding, the unit
price ($/weight of chemical) may be adjusted during the term of this
Page 1 of 12 Chemical Agreement
Attachment 2
ATTACHMENT 1
Page 12 of 23
Agreement, if such adjustment was contemplated in the original price
quotation/bid supplied to the City, along with backup documentation, and
the City, in its sole discretion, accepted the fixed price and the price
adjustment. Except where otherwise noted on Exhibit "A," the unit price
shall be based on the price per weight of actual active chemical. The unit
price shall be all inclusive of Supplier's profit, overhead and costs of
producing and delivering the chemical. Separate charges for permit fees,
regulatory compliance, taxes, fuel, cleanup will not be accepted. These
and all other costs shall be included in the unit price.
4. Extension of Term/Renewal. After the completion of the initial term of the
Agreement, at the City's option, the Agreement may be extended at the
original, fixed unit price and any accepted price adjustments. At least thirty
(30) days prior to the expiration of the term of the Agreement and any
extensions thereto, Supplier may submit a request for a unit price
adjustment to the City, which must be submitted along with back-up
documentation supporting the unit price adjustment. Should the City, in its
sole discretion, accept an adjustment in the price upon extension/renewal
of the Agreement, such adjustment shall be made in writing and attached
as a revised Exhibit "A." Nothing set forth herein shall obligate the City to
extend/renew this Agreement and adjust the unit price upon such
renewal/extension.
5. Delivery. Supplier shall deliver Goods within three business days of a
confirmed request for each delivery. Hours of delivery shall be Monday
through Friday, 6:00am to 12:00pm.
5.1 Business Hours. Within one month of the execution of this
Agreement, Supplier shall submit to the City dates Supplier will not
be able to deliver Goods due to planned maintenance, holidays or
other events that might affect chemical production or delivery.
5.2 Chemical Delivery . Supplier's delivery personnel shall have the
applicable adapter/connectors and hoses to complete the chemical
delivery.
5.3 Minimum Standards. Goods delivered shall meet or exceed all of
the current ANSI/AWWA minimum standards.
5.4 NSF Certification. The City requires all supplied Goods to carry
NSF 60 certification. "NSF" shall be stamped directly on the delivery
paperwork.
5.5 Certificate of Analysis. A certificate of analysis (hereinafter referred
to as "C of A") is required with each load before the Goods can be
unloaded.
5.6 Samples. Delivery vehicles shall be equipped to safely provide
samples of Goods, before off loading.
Page 2 of 12 Chemical Agreement
Attachment 2
ATTACHMENT 1
Page 13 of 23
5.7 Weight-Master's Certificate. A weight-master's certificate shall be
included at the time of delivery. The certificates shall show the
weight of the material delivered. If a split transport load is handled,
Supplier shall furnish a second weight-master's certificate within
one ( 1 ) hour of the original shipment.
5.8 MSDS/SDS. Under this Agreement, a manufacturer's Material
Safety Data Sheet (MSDS) or Safety Data Sheet (SDS) shall be
included with the first delivery of the Goods or after any change in
composition of the product, a change in manufacturing process, a
change in supplier, or a change in labeling/packaging of the
product.
5.9 Prior to delivery and after the truck has been loaded, all tanker
fill/drain accesses shall be sealed with security tags, the serial
numbers recorded and emailed to the GWRP Chief Plant Operator.
Tags removed by an authorized agency (e.g., D.O.T., CHP) shall be
replaced with a tag from that agency. Broken tags shall be kept
with the delivery truck to be shown to the GWRP personnel prior to
discarding.
5.10 Location. Deliveries shall be made to:
City of San Juan Capistrano
Groundwater Recovery Plant
Attn: Glenn Garrett
32470 Paseo Adelanto
San Juan Capistrano, CA 92675
6 . Inspection. Delivery does not constitute acceptance. The City reserves
the right to inspect any Goods for conformance with the specifications
contained herein. Goods discovered to be in noncompliance shall be
returned and immediately replaced with conforming Goods at Supplier's
sole expense. The City shall be reimbursed for any additional cost
incurred as a result of Supplier's lack of conformance.
A representative of the City may examine Supplier's inventory and
production facilities at any time during the life of this Agreement.
7 . Goods Specification and Quantity Estimate. The City estimates the
quantity of Goods to be required for the City's operation of the GWRP as
indicated on Exhibit "A", attached hereto and incorporated by reference
herein. Weights are based on actual active chemical weight. Quantities of
Goods listed may be increased or decreased to meet the requirements of
the City during the duration of this Agreement. The City does not
guarantee a minimum quantity, and the City reserves the right to purchase
more or less product units on an as-needed basis.
Page 3 of 12 Chemical Agreement
Attachment 2
ATTACHMENT 1
Page 14 of 23
8 . Personal Protective Equipment (PPE}. Supplier shall wear appropriate
PPE when taking samples and off-loading product.
9. Emergency Spill Plan . In the event of accidents or spills on City property,
Supplier shall follow the procedures of its Emergency Spill Plan, attached
hereto and incorporated by reference herein as Exhibit "B." The
Emergency Spill Plan shall include, at a minimum, the annual training the
delivery driver receives to deal with material spills, emergency equipment
the delivery truck has on board, the type and frequency of equipment
inspections, emergency contact telephone numbers and names of
personnel the City can contact in case of problems.
10 . Security. Due to heightened security measures, Supplier shall be required
to fax a photocopy of the driver's photo identification, security tag serial
numbers and trailer identification no later than two hours before delivery.
Contact Fax
[INSERT NAME AND TITLE] [INSERT NUMBER]
11 . Safety and Compliance with the Law. Supplier and Goods provided shall
comply with all applicable laws and regulations of the federal, state and
local government including Gal/OSHA requirements, requirements for
verification of employees' legal right to work in the United States, air
pollution control laws and regulations as applicable to the Supplier, and all
relevant U.S. Department of Transportation or Department of Homeland
Security regulations pertaining to transportation of hazardous waste,
substances and/or materials, as those regulations may be amended from
time to time and/or incorporated into state or local laws, regulations and
ordinances. If requested, Supplier shall supply to the City information
regarding the Supplier's safety ratings, safety audits and implementation of
security plans or measures for complying with said regulations.
Supplier is responsible for all costs of clean up and/or removal of
hazardous and toxic substances spilled as a result of his or her services or
operations provided under this Agreement.
12. Termination. The City reserves the right to terminate this Agreement in its
entirety at no cost, except for Goods delivered and accepted. The City
shall notify Supplier no less than 30 days prior to the date of termination of
the Agreement. Reasons for termination of the Agreement include, but are
not limited to, the following:
• The Goods are not compatible to the GWRP equipment or are not
providing acceptable process performance;
• Poor Goods quality;
• Poor or unsafe delivery container quality; and/or
• Failure of Supplier to meet any of the Agreement terms and
conditions.
Page 4 of 12 Chemical Agreement
Attachment 2
ATTACHMENT 1
Page 15 of 23
13. Insurance. The Supplier shall maintain the following insurance during the
performance of all services/work under this Agreement. Should any of the
required coverage lapse or be cancelled during the term of this
Agreement, the Supplier shall be obligated to notify the City immediately in
writing. All insurance certificates and endorsements required hereunder
shall be attached hereto as Exhibit "C."
A. Commercial General Liability Insurance, of at least $2,000,000 per
occurrence/ $2,000,000 aggregate (if used) for bodily injury, personal
injury and property damage, at least as broad as Insurance Services
Office Commercial General Liability coverage (Occurrence Form CG 00
01 ). Policies shall not contain any exclusion contrary to this Agreement
including but not limited to endorsements or provisions limiting coverage
for (1) contractual liability (including -but not limited to ISO CG 24 26 or CG
21 39); (2) cross-liability for claims or suits by one insured against another;
or (3) severability of interest. The general liability coverage shall give City
of San Juan Capistrano, the City Council, members of the City Council
and City officers, employees, and agents additional insured status using
ISO endorsement CG 20 10, CG 20 37, or endorsements providing the
exact same coverage. The general liability insurance shall be primary
(using ISO CG 20 01, or endorsements providing the exact same
coverage) and any insurance, self-insurance or other coverage maintained
by the City shall not contribute to it.
B. Automobile Liability Insurance including coverage for owned, non-and
hired vehicles (Coverage Symbol 1, any auto) of at least $2,000,000 per
occurrence for bodily injury and property damage, at least as broad as
Insurance Services Office Form Number CA 00 01. The automobile
liability policy is to contain, or be endorsed to contain the following
provisions: Pollution Liability -Broadened Coverage for Autos using ISO
Form CA 9948, or an endorsement containing the exact same coverage
and endorsement for Motor Carrier Policies of Insurance for Public Liability
Under Sections 29 and 30 of the Motor Carrier Act of 1980 -Form MCS
90. In the event that the automobile liability policy contains an exclusion
for Wrong Delivery of Liquid Products, ISO Form CA 23 05, or similar
exclusion endorsement, the general liability policy shall be endorsed to
provide this coverage.
C. Environmental Impairment Liability of at least $2,000,000 per claim
and $2,000,000 annual aggregate. If coverage is written on a claims
made basis, the retroactive date is to be no later than the effective date of
this Agreement. This coverage must be maintained for at least 24 months
following the expiration date of this Agreement.
D. Workers' Compensation (statutory limits) and Employer's Liability
Coverage of at least $1,000,000 per occurrence. By its signature
hereunder, the Supplier hereby certifies that he/she is aware of the
provisions of Section 3700 of the California Labor Code which requires
Page 5 of 12 Chemical Agreement
Attachment 2
ATTACHMENT 1
Page 16 of 23
every employer to be insured against liability for workers' compensation or
to undertake self-insurance in accordance with the provisions of that code,
and he/she will comply with such provisions before commencing services
or operations under this Agreement.
E. Insurance carriers shall have not less than an "A-" Financial Strength
Rating and Financial Size Category of not less than "Class VII" according
to the latest Best Key Rating Guide unless otherwise approved by the
City. Certificates of insurance and policy endorsements shall be filed with
the City prior to Work commencing. If any of the required coverages
expire during the term of this Agreement, the Supplier shall deliver the
renewal certificate(s), including the general liability additional insured
endorsement, to the City prior to the expiration date.
F. Notwithstanding the minimum limits set forth in this section, any
available insurance proceeds in excess of the specified minimum limits of
coverage shall be available to the parties required to be named as
additional insureds. Defense costs .shall be paid in addition to the limits.
G. Any failure to comply with reporting or other provisions of the policies,
including breaches of warranties, shall not affect coverage provided to the
City, the City Council, members of the City Council and City officers,
employees, and agents.
H. Supplier shall ensure that third party shippers contracted by Supplier to
deliver the Goods have adequate insurance coverage.
14. Hold Harmless and Indemnification. To the fullest extent permitted by law,
the Supplier shall indemnify, defend, and hold harmless the City, the City
Council, members of the City Council and City officers, employees, and
agents, against any and all claims, liabilities, expenses or damages,
including reasonable attorneys' fees, for injury or death of any person, or
damage to property, or interference with use of property, or any claim of
the Supplier or independent suppliers hired by Supplier under this
Agreement for wages or benefits which arise in connection with the
performance of the Agreement and the sale or delivery of the Goods,
except to the extent caused or resulting from the sole negligence or willful
misconduct of the City. The foregoing indemnity includes, but is not
limited to, the cost of prosecuting or defending such action with legal
counsel acceptable to the City and reimbursement of the City's attorneys'
fees incurred in such an action. Supplier's obligation to indemnify shall
survive the expiration or termination of the Agreement and shall not be
restricted to insurance proceeds, if any, received by the City, the City
Council, members of the City Council or City officers, employees, and
agents.
15. Notice. Any notice required under this Agreement shall be provided as
follows:
Page 6 of 12 Chemical Agreement
Attachment 2
ATTACHMENT 1
Page 17 of 23
City of San Juan Capistrano
Utilities Department
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Attn: Eric Bauman
[INSERT NAME OF
SUPPLIER]
[INSERT ADDRESS]
Attn: [INSERT NAME AND
TITLE]
16. Independent Transactions. Each shipment shall constitute a separate and
independent transaction and Supplier may recover for each such shipment
without reference to any other. Supplier may decline to make further
deliveries under this Agreement before payment of any amounts past due
or satisfactory security for such payment is received.
17 . Supplier 's Weights Govern . In case of a dispute concerning the weight of
Product delivered in bulk carload or tank car shipments, Supplier's weight,
certified to by a sworn Weigh-master, shall govern absent manifest error.
18 . Warranty. Determination of the suitability of the Product supplied hereunder
for the uses and applications contemplated by the City and others shall be
the sole responsibility of the City. Supplier warrants that the Product
delivered hereunder meets the AWWA specification for [INSERT
CHEMICAL NAMES]. SUPPLIER MAKES NO OTHER EXPRESS
WARRANTIES. EXCEPT AS OTHERWISE PROVIDED IN THIS
AGREEMENT, THE CITY ASSUMES ALL RISK AND LIABILITY FOR ALL
LOSS, DAMAGE OR INJURY TO PERSON OR PROPERTY, INCLUDING
WITHOUT LIMITATION POLLUTION, ENVIRONMENTAL DAMAGE AND
RESTORATION LIABILITY, RESULTING FROM (I) THE USE OF SAID
PRODUCT IN MANUFACTURING PROCESSES OR IN COMBINATION
WITH OTHER SUBSTANCES, OR OTHERWISE (II) THE HANDLING AND
DISPOSAL OF THE PRODUCT.
19. Taxes. Any applicable taxes are already included in the pricing set forth in
Exhibit "A."
20. Force Majeure. Neither party shall be liable for its failure to perform
hereunder if said performance is made impracticable due to any
circumstances beyond the reasonable control of the party affected,
including but not limited to, acts of God, acts of terrorism, fires, floods,
wars, sabotage, accidents, labor disputes or shortages, plant shutdown,
equipment failure, voluntary or involuntary compliance with any law, order,
rule or regulation of government agency or authority, or inability to obtain
material (including power and fuel), equipment or transportation. The
affected party may omit purchases or deliveries during the period of
continuance of such circumstances and the Agreement quantity shall be
reduced by the quantities so omitted. During any period when Supplier
shall be unable to supply the total demands for any Good provided for in
this Agreement, whether caused by the circumstances specified above or
otherwise, Supplier may allocate any available Good among all buyers
including its own divisions and departments, on such basis as it may deem
fair and practical.
Page 7 of 12 Chemical Agreement
Attachment 2
ATTACHMENT 1
Page 18 of 23
21 . Waiver. Each party's waiver of any breach, or failure to enforce any of the
terms and conditions of this Agreement, at any time, shall not in any way
affect, limit or waive its right thereafter to enforce and compel strict
compliance with every term and condition hereof. The acceptance by the
Supplier of any payment after the specified due date shall not constitute a
waiver. of the City's obligation to make further payments on the specified
dates.
22 . Integration. This Agreement represents the entire understanding of the
City and Supplier as to those matters contained herein, and supersedes
and cancels any prior oral or written understanding, promises or
representations with respect to those matters covered hereunder. This
Agreement may not be modified or altered except in writing signed by both
parties hereto. This is an integrated Agreement.
23. Laws, Venue and Attorneys' Fees. This Agreement shall be interpreted in
accordance with the laws of the State of California. If any action is brought
to interpret or enforce any term of this Agreement, the action shall be
brought in a state or federal court situated in the County of Orange, State
of California. In the event of any such litigation between the parties, the
prevailing party shall be entitled to recover all reasonable costs incurred,
including reasonable attorney's fees, as determined by the court.
24 . Third Party Rights. Nothing in this Agreement shall be construed to give
any rights or benefits to anyone other than the City and Supplier.
25 . Severability. The unenforceability, invalidity or illegality of any provision(s)
of this Agreement shall not render the other provisions unenforceable,
invalid or illegal.
26. Counterparts. This Agreement may be signed in counterparts, each of
which shall constitute an original.
[Signatures on Next Page]
Page 8 of 12 Chemical Agreement
Attachment 2
ATTACHMENT 1
Page 19 of 23
SIGNATURE PAGE
AGREEMENT FOR
PURCHASE OF CHEMICALS
BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND
[INSERT NAME OF SUPPLIER]
IN WITNESS WHEREOF, this Agreement is executed by the City and by
Supplier on the day and year first written above.
CITY OF SAN JUAN CAPISTRANO [INSERT NAME OF SUPPLIER]
By: Benjamin Siegel By: [Insert signatory name)
Title: City Manager Title : [Insert signatory title)
Signature : -----------Signature :
Attest:
By: Maria Morris
Title: _C.=...;i:..:...~ty~C~I-=-er;.;,;k;....._ _____ _
Signature: __________ _
APPROVED AS TO FORM:
BEST BEST & KRIEGER LLP
By:
Signature : __________ _
Page 9 of 12 Chemical Agreement
Attachment 2
ATTACHMENT 1
Page 20 of 23
Exhibit "A"
Product Specification and Quantity Estimate
and
Supplier's Quotation
Page 10 of 12 Che mica l Agreement
Attachment 2
ATTACHMENT 1
Page 21 of 23
Exhibit "8"
Emergency Spill Plan
Page 11 of 12 Chemical Agreement
Attachment 2
ATTACHMENT 1
Page 22 of 23
Exhibit "C"
Insurance Certificates
Page 12 of 12 Chemical Agreement
Attachment 2
ATTACHMENT 1
Page 23 of 23
"1J
Q) co
CD
~
0 -~
)>
-I
~
()
I s:: m z
-I
1\.)
Vendors
Chemical
Corrison Inhibitor
Aqueous Ammonia 19%
Citric Acid 50%
Sodium Hydroxide 50%
Sodium Hypochlorite 12.5%
Sodium Metabisulfite 25%
Sodium Permanganante 20%
King Lee Pretreat Plus Y2K
King Lee Pretreat Plus 0400
Annual
Qty
(Gal)
5,000
4,000
1,800
45000
90,000
50 ,000
15,000
7.000
166
Summary of Proposals for Chemical Deliveries FY 2017-18 & 2018-19
(Lowest Prices Highlighted)
King Lee T&eh Brennta,g Chemrlte, Inc. Waterline Tech UCI Uones Chemi cal Shannon Chemical Olin CofJ) PVS Minibulk Inc.
Un~ Cost Un~ Cost Un~ Cost Unit Cost Un~ Cost Unit Cost Unit Cost Unit Cost
Per Gallon Total Per Gallon Total Per Gallon Total Per Gallon Total Per Gallon Total Per Gallon Total Per Gallon Total Per Gallon Total
No Bid N/A $10.200 $51 .000 $9.35 $46 .750 No Bid No Bid $11.49 $57.450 No Bid No Bid
No Bid N/A $4.84 $19.340 No Bid $4.96 $19.840 No Bid No Bid No Bid No Bid
No Bid N/A $7.84 $14.118 No Bid No Bid No Bid $12.37 $22.266 No Bid No Bid
No Bid N/A $2.46 $110.885 No Bid No Bid $2.53 $113.850 No Bid No Bid $2.64 $118 ,800
No Bid N/A $1.190 $107 .100 No Bid $1.06 $95.400 $1.06 $95.400 NoBld $1 .03 $92 ,520 $1.33 $119 ,700
No Bid N/A $1.36 $68.000 No Bid No Bid $1 .38 $69,000 No Bid No Bid No Bid
No Bid NfA $10.900 $163,500 $9.45 $141 ,750 No Bid No Bid $14.44 $216.600 No Bid No Bid
$10 .59 $74 ,130 No Bid No Bid $19.93 $139.510 No Bid No Bid No Bid No Bid
$73 .78 $12.174 No Bid -___l!o~~-$98 .00 $1_6 ,170 No Bid No Bid No Bid No Bid