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Exhibit 1-Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Materials Management CM: Todd Hileman DATE: November 7, 2017 SUBJECT Consider adoption of an ordinance accepting competitive bids and awarding a contract for the supply of Water Treatment Chemicals for the Water and Wastewater Departments; providing for the expenditure of funds therefor; and providing an effective date (IFB 6530-awarded to multiple vendors with the award to the lowest responsible bidder meeting specification for each line item in the four (4) year not-to-exceed amount of $7,026,100). The Public Utilities Board recommends approval (7-0). BACKGROUND The chemicals required to treat Denton’s drinking water and wastewater were last bid in fiscal year 2015. IFB 6530 specifies a total of eleven different chemicals for the treatment of the drinking water and three for the treatment of the wastewater. Invitations for Bid were sent to 87 prospective suppliers of these chemicals. In addition, specifications were placed on the Materials Management website for prospective suppliers to download and advertised in the local newspaper. Nineteen (19) bids were received. Staff recommends awarding to the lowest responsible bidder meeting specification for each line item as shown on Exhibit 2. On Item 6, Potassium Permanganate, the lowest price vendor Shannon Chemical Corporation, did not meet the specifications-the chemical source is not domestic. Brenntag Southwest Incorporated provided the lowest price for a domestic product. Historically, the foreign source material has not proven to be “free flowing” and does not work with our chemical feed equipment but the domestic product tends to be “free flowing”. This chemical is primarily used for zebra mussel control, therefore proper and accurate feed is required. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On October 23, 2017, the Public Utilities Board recommended approval to forward this item to the City Council for consideration. RECOMMENDATION Award to the lowest responsible bidder meeting specification for each line item in the four (4) year not-to- exceed amount of $7,026,100. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com PRINCIPAL PLACE OF BUSINESS DPC Industries Inc. Mosaic Global Sales, LLC Brenntag Southwest, Inc. Cleburne, TX Lithia, FL Longview, TX Chemtrade Chemicals US, LLC Tanner Industries, Inc. Polydyne Inc. Parsippany, NY Southampton, PA Riceboro, GA Pencco, Inc. Praxair, Inc. Shannon Chemical Corp. Sealy, TX Danbury, CT Exton, PA TDC, LLC Ruston, LA ESTIMATED SCHEDULE OF PROJECT This is an initial one (1) year contract with options to extend the contract for three (3) additional one (1) year periods, with all terms and conditions remaining the same. FISCAL INFORMATION Funding for the drinking water treatment chemicals will come from Water Production Division’s Operating Budget account number 630100.6334. Funding for the wastewater treatment chemicals will come from Water Reclamation’s Operating Budget account number 640100.6334. Purchase orders will be issued as the chemicals are needed. STRATEGIC PLAN RELATIONSHIP The City of Denton’s Strategic Plan is an action-oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family-Friendly Community; and Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal: Related Key Focus Area: Organizational Excellence Related Goal: 5.1 Responsibly manage Denton's water, land, and other natural resources EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Tabulation Sheet Exhibit 3: Public Utilities Board Minutes Exhibit 4: Ordinance Exhibit 5: Brenntag Southwest Inc. Contract Exhibit 6: Chemtrade Chemicals US, LLC Contract Exhibit 7: DPC Industries, Inc. Contract Exhibit 8: Mosaic Global Sales, LLC Contract Exhibit 9: Polydyne Inc. Contract Exhibit 10: Pencco, Inc. Contract Exhibit 11: Praxair, Inc. Contract Exhibit 12: Shannon Chemical Corp. Contract Exhibit 13: Tanner Industries, Inc. Contract Exhibit 14: TDC, LLC Contract Respectfully submitted: Karen Smith, 349-8436 Purchasing Manager For information concerning this acquisition, contact: Randy Markham at 349-7526.