Title
[Contract] Fiscal Year 2027 Contracts: Chemical Purchases (Bay Area Chemical Consortium - BACC) [Published for 10-Day Review 06/05/2026]
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FileID
File ID: 2026-01012
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion awarding one-year contracts from July 1, 2026 through June 30, 2027 to: 1) Chemtrade Chemicals US LLC for the purchase of Aluminum Sulfate in an amount not to exceed $2,000,000; 2) Thatcher Company of California, Inc. for the purchase of Liquid Chlorine in an amount not to exceed $2,400,000; 3) DuBois Chemicals, Inc. for the purchase of Hydroflurosilicic Acid in an amount not to exceed $350,000; 4) Olin for the purchase of Sodium Hypochlorite in an amount not to exceed $800,000; 5) Univar Solutions USA for the purchase of Sodium Bisulfite in an amount not to exceed $350,000; and 6) Univar Solutions USA Inc. for the purchase of Sodium Hydroxide in an amount not to exceed $100,000. The City may extend these contracts for up to three (3) additional one-year terms on terms and conditions mutually acceptable to the City and Contractor, for a maximum four (4) year term.
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Contact
Contact: Deanne Neighbours, Logistics Manager, (916) 808-3536, dneighbours@cityofsacramento.org; David Herrmann, Water Division Manager, (916) 808-5652, dherrmann@cityofsacramento.org; Dalia Fadl, Director, (916) 808-3765, dfadl@cityofsacramento.org; Department of Utilities
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-PRC004207 Chemtrade (Aluminum Sulfate)
3-PRC004208 Thatcher (Liquid Chlorine)
4-PRC004209 DuBois (Hydroflurosilicic Acid)
5-PRC004210 Olin (Sodium Hypochlorite)
6-PRC004211 Univar (Sodium Bisulfite)
7-PRC004212 Univar (Sodium Hydroxide)
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Description/Analysis
IssueDetail
Issue Detail: The Department of Utilities (DOU) operates two water treatment plants, the Sacramento River Water Treatment Plant and the E.A. Fairbairn Water Treatment Plant. DOU also operates the Combined Wastewater Treatment Plant and several other smaller facilities for wastewater treatment. As part of these treatment processes, multiple chemicals are used, including Aluminum Sulfate, Liquid Chlorine, Hydroflurosilicic Acid, Sodium Hypochlorite, Sodium Bisulfite and Sodium Hydroxide. DOU has an ongoing need to maintain sufficient inventory of these chemicals to ensure water quality regulations are met and uninterrupted service is provided to customers. The prices for these contracts have been bid on behalf of DOU by the Bay Area Chemical Consortium (BACC).
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PolicyConsiderations
Policy Considerations: City Code Section 3.56.240 authorizes the City Manager, by cooperative purchasing agreements approved by the City Council, to purchase supplies through legal contracts of other governmental jurisdictions or public agencies without separate competitive bidding by the City.
The Sacramento City Code Section 4.04.020 and the City Council Rules of Procedure (Chapter 7, Section E.2.d) mandate that unless waived by a two-thirds vote of the City Council, all labor agreements, and all agreements greater than $1,000,000 shall be made available to the public at least ten (10) days prior to City Council action.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: The purchase and use of chemicals is an ongoing activity at the City’s water and wastewater plants. The use of these chemicals is regulated by State permit requirements. The Community Development Department, Environmental Services Manager has determined that the proposed activity is not a project pursuant to the California Environmental Quality Act (CEQA). CEQA Guidelines Section 15378(b). The activity is a continuing administrative or maintenance activity, such as the purchase of supplies, and is not subject to CEQA. CEQA Guidelines Section 15060(c)(3).
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Sustainability
Sustainability: Chemicals to be purchased under these contracts comply with the 2040 General Plan and Climate Action & Adaptation Plan as they facilitate the continued treatment and protection of the City’s drinking water. Per General Plan PFS-3.1: “Provision of Adequate Utilities. The City shall continue to provide reliable water, wastewater, and stormwater drainage utility services.”
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: Per historical data, the prices for these chemicals obtained through the BACC bid process are lower than prices the City would have been able to obtain bidding on its own.
Use of the BACC bid process is in the City’s best interest because by purchasing chemicals through the BACC, the City can consolidate bid solicitations for these chemicals into one annual bidding process and BACC is made up of approximately 60 public water and wastewater agencies working together to purchase chemicals which yields more competitive pricing from vendors.
The not-to-exceed amounts of these contracts are based on DOU’s previous experience with chemical quantities used for treatment operations and past expenditures.
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FinancialConsiderations
Financial Considerations: Sufficient funds exist in the proposed FY2027 DOU Operating Budget to support the first year of the agreements. The total contract authority is up to $6 million over four years, including the optional one-year extensions. Funding in future fiscal years will be subject to availability of sufficient funds in the applicable fiscal year.
There are no General Funds allocated or planned for these agreements.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): The City’s LBE bid requirements do not apply because the City is using an alternative procurement process and did not conduct the bidding process.
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