Report Prepared by: William Osmer, WWTP Manager
Title
SUBJECT: Approval to Waive the City’s Competitive Bidding Requirements and Approval of a Supplies and Services Agreement with Kemira Water Solutions, Inc., for the Purchase of Chemicals for the City’s Wastewater Treatment Plant, Including Ferric Chloride at a Unit Cost of $1,084.46 per Dry Ton and Poly Aluminum Chloride (PAC) at a Unit Cost of $.98 per Pound, with a Contract Term Ending June 30, 2022
REPORT IN BRIEF
Considers waiving the City’s competitive bidding requirements and approving a Supplies and Services Agreement with Kemira Water Solutions, Inc., to purchase ferric chloride and poly aluminum chloride for use at the City’s Wastewater Treatment Plant.
RECOMMENDATION
City Council - Adopt a motion:
A. Waiving the City’s competitive bidding requirement as permitted by Merced Municipal Code Section 3.04.210 for an annual supplies and service agreement; and,
B. Approving a Supplies and Services Agreement with Kemira Water Solutions, Inc., for the purchase of ferric chloride and poly aluminum chloride through June 30, 2022; and,
C. Authorizing the City Manager or Deputy City Manager to execute the necessary documents.
Body
ALTERNATIVES
1. Approve, as recommend by Staff; or,
2. Approve, subject to other than recommended by Staff; or,
3. Deny; or,
4. Refer to Staff for reconsideration of specific items; or,
5. Continue to a future meeting.
AUTHORITY
Merced City Charter, Section 200. Municipal Code Section 3.04.210 - Exemptions from Competitive Bidding.
CITY COUNCIL PRIORITIES
As provided for in the 2021-2022 Adopted Budget.
DISCUSSION
The Wastewater Treatment Plant (WWTP) uses ferric chloride after anaerobic digestion to control phosphates in the biosolids dewatering process. Poly aluminum chloride (PAC) is a polymer that reacts with the colloidal solids, from the secondary activated sludge system, to help them bind together as floc in order to be removed by the tertiary filters before discharging compliant water to the environment.
The amount of ferric chloride needed for phosphate control varies. On average, the WWTP uses 480,000 pounds (240 tons) of ferric chloride annually. Normally the WWTF orders ferric chloride from Thatcher Company via the Bay Area Chemical Consortium (BACC). However, Thatcher declared a force majeure on ferric chloride. Kemira was the second lowest bidder through the BACC and has submitted a quote of $1,084.46 per dry ton, plus sales tax, for the period of January 1, 2022 to June 30, 2022. Staff anticipates approximately $125,000 to be expensed on ferric chloride for the remainder of this fiscal year.
The use of PAC coagulant has been greater than anticipated this fiscal year. Difficulties in sourcing PAC coagulant, long lead times, and the continued usage has necessitated the need to enter a contract with multiple vendors in order to meet the operational needs of the City’s WWTP. Kemira is a supplier for PAC and will be used as an alternate source, if the current vendor cannot provide the chemical as needed. The quoted price by Kemira for PAC coagulant is $.98 per pound, plus tax with delivery fees included.
WWTP staff has sought out vendors to find the best source of needed chemicals at a reasonable cost. Recently, due to the lack of available chemicals, the cost has increased due to the demand. Alternative chemicals have been sourced through the current vendor; unfortunately, these available chemicals did not work as intended with our specific needs. Staff’s recommendation is to enter into an agreement with Kemira to purchase the specific chemicals needed to continue with operations at the City’s WWTP.
IMPACT ON CITY RESOURCES
No appropriate of funds is necessary. Funding for this agreement is available in Wastewater Treatment Fund 553-1108.
ATTACHMENTS
1. Supplies and Services Agreement