HomeMy WebLinkAboutF-2.1. Approve 5th Amendment PSA Northstar Chemical for Water Treatment ChemicalsCONSENT CALENDAR F-2
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
FROM: TIKAN SINGH, GENERAL MANAGER
DATE: JUNE 24, 2024
SUBJECT: APPROVE THE FIFTH AMENDMENT TO THE PROFESSIONAL SERVICES
AGREEMENT WITH NORTHSTAR CHEMICAL TO PROVIDE WATER
TREATMENT CHEMICALS AND EQUIPMENT SERVICES
BACKGROUND:
On May 22, 2023, the Azusa Utility Board approved the Fourth Amendment to the Professional Services
Agreement (PSA) with Northstar Chemical (Northstar) for mini-bulk delivery of 12.5% sodium
hypochlorite used in water treatment. The agreement was amended to extend the term until June 30, 2024,
with three additional one-year extension options.
Sodium Hypochlorite is utilized in the water quality and treatment process. Northstar continues to provide
water treatment chemicals at a competitive price, and Azusa Light & Water (ALW) recommends
exercising its option to extend the PSA for one year, effective July 1, 2024, in an amount not to exceed
$175,000.
RECOMMENDATION:
Staff recommends the Utility Board take the following actions:
1) Approve the Fifth Amendment to the Professional Services Agreement with Northstar
Chemical, as a DBA of Pacific Star Chemical, in an amount not to exceed $175,000, in
accordance with Azusa Municipal Code Section 2-517(a) (24); and
2)Authorize the Mayor to execute the Fifth Amendment in a form acceptable to the City Attorney
on behalf of the City.
Approved
Utility Board
06/24/2024
Approve Fifth Amendment – Northstar Chemical
June 24, 2024
Page 2
ANALYSIS:
Northstar Chemical has been supplying 12.5% sodium hypochlorite to ALW since August 2014. This
chemical is used for chlorination at each of ALW’s eleven groundwater wells. The current contract
extension is due to expire on June 30, 2024 and ALW has negotiated pricing at a competitive level.
Northstar has agreed to deliver Mini-Bulk NSF Sodium Hypochlorite 12.5% at a price of $3.19 per gallon
through the contract period: starting July 1, 2024 to June 30, 2025 with a maximum of $0.15 per gallon
increase per quarter. After June 30, 2025, the City will have the option to exercise two (2) additional (1)
one-year extensions at its discretion. Pricing for those additional extension years may be adjusted annually
based upon current costs, documented market conditions and upon mutual agreement.
The purchase of chemicals for water treatment is exempt from competitive bidding pursuant to Azusa
Municipal Code Section 2-517(a) (24); however, ALW Water Division is committed to doing all the due
diligence to provide the best for ALW customers to provide safe reliable drinking water that meets or
exceeds all the water quality standards. Staff obtained a quote from Univar Solutions, whose current price
for 12.5% sodium hypochlorite is $3.21 per gallon, confirming Northstar provides the most cost-effective
pricing.
FISCAL IMPACT:
There are sufficient funds for water treatment chemicals in Water Fund Account 32-40-722-701-6563 –
Chemicals & Filtering Materials, Supplies/Special.
Prepared by: Prepared by:
Carlos Solis Melissa Barbosa, PE
Water Treatment Superintendent Assistant General Manager
Water Operations
Reviewed and Approved: Reviewed and Approved:
Danny Smith Tikan Singh
Utilities Admin & Finance Manager General Manager
Reviewed and Approved:
Sergio Gonzalez
City Manager
Attachments:
1) Fifth Amendment to Professional Services Agreement
2) Northstar Chemical Quote
3) Univar-USA Quote