Title
Resolution to Increase Sole Source Purchasing Authority with Veolia Water Technologies - Treatment Solutions USA, Inc. (formerly SUEZ Treatment Solutions, Inc.) for Power Supply Units ($953,000.00 increase, total purchase value $1,728,552.60)
Memorandum
This memorandum and resolution requests approval to increase the purchasing authority with Veolia Water Technologies - Treatment Solutions USA, Inc. (Veolia) (formerly SUEZ Treatment Solutions, Inc.) for furnishing power supply units (PSUs), ozone generator dielectrics and vessel internals for two (2) ozone generator trains required to provide primary disinfection at the Water Treatment Plant ($866,000.00).
The Water Treatment Plant (WTP) provides reliable high-quality drinking water to approximately 140,000 customers. In 1996, the WTP completed a major improvements project that added ozone disinfection to be used as the WTP’s primary disinfection step. Ozone is generated on-site via four (4) ozone generation equipment trains, each train consisting of power supply units, generator vessel dielectrics and internals, as well as various ancillary components. In 2022, a purchase order was issued to SUEZ (now Veolia) for two (2) of the PSUs that cost $775,552.60. These new units were commissioned in late 2023 and have been performing well. This resolution increases the purchasing authority in order to purchase the other two (2) ozone PSUs. These remaining PSUs are original equipment from the 1996 installation and are nearing the end of their service life. Ensuring all four (4) ozone trains are available for operation is critical to maintain rated treatment capacity as regulated by EGLE. Completion of the Ozone system upgrades phase 2 is programmed into the CIP to proceed with several other improvement projects, specifically Plant 1 replacement.
Since the 2022 purchase order, SUEZ was acquired by Veolia Water Technologies - Treatment Solutions (Veolia). With this acquisition, Veolia maintains engineering and the production of materials and equipment compatible with the City’s original equipment. Veolia provided a proposal to provide power supply units (PSUs), ozone generator dielectrics and vessel internals for the remaining two (2) ozone generator trains, spare parts as well as shop drawing submittals and site services. Their proposal took into consideration the recent replacement of Units 1 and 2 which minimizes repeat efforts for programming and will allow efficient integration of PSU 3 and 4.
It is recommended to increase the Sole Source Purchasing Authority with Veolia (formerly SUEZ) $953,000.00, and that Veolia be awarded a purchase order for $866,000.00 for the ozone generation equipment needed to maintain the critical primary disinfection process of the water treatment plant.
The resolution recommends a contingency in the amount of $87,000.00 for changes to the purchase order with Veolia Water Technologies - Treatment Solutions USA, Inc. to cover unforeseen conditions.
By utilizing Veolia equipment, these upgrades have the benefit of reusing portions of the existing equipment, avoiding the need to replace the entire ozone generator. Components from other manufacturers are not compatible and would require entire system replacement. The proposal from Veolia is the most economical solution to restoring full operation of the primary disinfection system and improving long-term reliability.
Veolia Water Technologies - Treatment Solutions USA, Inc. complies with the City’s Living Wage and Non-Discrimination Ordinances.
Budget/Fiscal Impact: Funds for this purchase are available from the approved FY25 Water Supply System Fund Capital Budget and will be available in the FY26 budget if so, approved by Council.
Staff
Prepared by: Emily Schlanderer, Water Treatment Plant Engineer
Reviewed by: Jordan Roberts, Public Services Area Administrator
Approved by: Milton Dohoney, Jr., City Administrator
Body
Whereas, The ozone disinfection system at the City’s Water Treatment Plant is the primary disinfection process and critical in providing reliable and high-quality drinking water to approximately 140,000 customers;
Whereas; The replacement of the remaining two (2) ozone generator trains’ power supply units (PSUs), dielectrics and ozone generator vessel internals will replace critical components of the ozone disinfection system that have failed and are no longer available or supported by the original equipment manufacturer;
Whereas, It is necessary to purchase the ozone disinfection components to ensure continuous operation of the primary disinfection system;
Whereas, Veolia Water Technologies - Treatment Solutions USA, Inc. is uniquely qualified to provide the ozone generation equipment and programming because they are the sole authorized vendor of this equipment in our service area;
Whereas, Funding in the amount of $953,000.00 for the power supply units (PSUs), dielectrics and ozone generator vessel internals is partially available in the approved FY25 Water Supply System Fund Capital Budget and the remainder will be available in the FY26 budget if so, approved by Council; and
Whereas, Veolia Water Technologies - Treatment Solutions USA, Inc. complies with the City’s Living Wage and Non-Discrimination ordinances;
RESOLVED, That City Council accepts the quotation for the two (2) ozone generator trains’ power supply units (PSUs), dielectrics and ozone generator vessel internals, and approves the issuance of a Purchase Order to Veolia Water Technologies - Treatment Solutions USA, Inc. in the amount of $866,000.00;
RESOLVED, That City Council approves a contingency in the amount of $87,000.00 to the purchase order with Veolia Water Technologies - Treatment Solutions USA, Inc. and that the City Administrator be authorized to approve additional purchase order changes not to exceed $1,728,552.60 in order to satisfactorily complete this project; and
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution.