Title
Resolution to Approve Ferric Chloride Purchase from PVS Technologies, Inc. for the Wastewater Treatment Plant ($50,000.00 per year - estimated)
Memorandum
Your approval is requested to authorize the purchase of ferric chloride from PVS Technologies, Inc. (PVS) for City’s Wastewater Treatment Plant (WWTP), at an estimated cost of $50,000.00 for FY 18. In addition, your approval is requested to authorize the purchase of ferric chloride from PVS for two additional one-year periods during FY 19 and FY 20 at the same unit cost and with the concurrence of both the City and PVS.
The WWTP uses ferric chloride for the removal of phosphorus to levels specified in its National Pollutant Discharge Elimination System (NPDES) permit. Especially during summer months, phosphorus removal becomes critical and the addition of ferric chloride improves the plant’s ability to remove phosphorus from the wastewater. Violation of NPDES permit requirements could result in significant fines of up to $25,000.00 per day per occurrence being imposed on the City by the Michigan Department of Environmental Quality.
In 2017, bids were obtained through the Mid-Michigan Drinking Water Consortium Bulk Chemical Bids. The Mid Michigan Consortium was formed in 2014 by utilities in the mid-Michigan area that use chemicals to address chemical supply quality, competitive pricing, and residual disposal. The Consortium member include: Lansing Board of Water & Light; City of Battle Creek; City of Jackson; City of Howell; City of Ann Arbor; City of Fenton; East Lansing Meridian Water &Sewer Authority; Plainfield Township; City of Owosso; Marion-Howell-Osceola-Genoa Water Authority; and the Tri-County Regional Planning Commission.
Bids from 2017 were:
PVS Technologies, Inc. $397 per dry ton delivered
Kemira Water Solutions, Inc. $417 per dry ton delivered
It is recommended that the bid be accepted and the purchase order be awarded to PVS Technologies, Inc., as the lowest responsible bidder, to provide ferric chloride to the Wastewater Treatment Services Unit for FY 18.
Funds to finance the FY 18 purchase are included in the approved WWTP Operations and Maintenance budget for the Sewage Disposal System. Approval for subsequent years is subject to the availability of funding.
Staff
Prepared by: Keith Sanders, Assistant Manager, WWTP
Reviewed by: Craig Hupy, Public Services Area Administrator
Approved by: Howard S. Lazarus, City Administrator
Body
Whereas, The City’s Wastewater Treatment Plant (WWTP) uses ferric chloride for phosphorus removal to meet its permit requirements;
Whereas, PVS Technologies, Inc. (PVS) submitted the lowest responsible bid for supplying ferric chloride to the Mid-Michigan Drinking Water Consortium Bulk Chemicals invitation to bid for the supply of ferric chloride;
Whereas, Funds have been budgeted in the Public Services Sewage Disposal Fund WWTP Operation and Maintenance budget for FY18 and approval for subsequent years is subject to the availability of funding; and
Whereas, PVS complies with the requirements of the Non-Discrimination Ordinance;
RESOLVED, That City Council approve the purchase of ferric chloride from PVS for the WWTP in accordance with the terms of the 2017 Mid-Michigan drinking Water Consortium Bulk Chemicals Bid ($397.00 per dry ton delivered);
RESOLVED, That the City Administrator be directed to enter into a purchasing agreement in accordance with this resolution at a projected cost of $50,000.00 for a one year term ending June 30, 2018;
RESOLVED, That the City Administrator be authorized to renew the purchasing agreement for up to two (2), one-year (1) periods after the initial one-year period provided both parties agree to an extension and subject to the availability of funding;
RESOLVED, That the City Administrator be directed to accept the next lowest responsible bidder if PVS is unable to furnish the adequate supplies during the life of their contract; and
RESOLVED, That the City Administrator be authorized to take all necessary actions to implement this resolution.