Title
Resolution to Approve Ferric Chloride Purchase from Kemira Water Solutions, Inc. for the Wastewater Treatment Plant, ITB-4385 ($50,000.00 per year - estimated)
Memorandum
Your approval is requested to authorize the purchase of ferric chloride from Kemira Water Solutions, Inc. (Kemira) for the City’s Wastewater Treatment Plant (WWTP) for one year at an estimated cost of $50,000.00, and to authorize up to three one-year renewals by mutual agreement between the City and Kemira.
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.
The WWTP advertised an Invitation to Bid (ITB) to supply ferric chloride required by the plant in ITB-4385. There were two respondents to this ITB:
Kemira Water Solutions, Inc. $388 per dry ton delivered
PVS Technologies, Inc. $517 per dry ton delivered
WWTP staff reviewed the bids from each supplier and recommends Kemira be approved as the lowest responsible bidder. It is further recommended that the purchase of ferric chloride from Kemira be approved for a one-year period with three one-year renewals by mutual agreement between the City and Kemira.
Kemira received Non-Discrimination approval from Human Resources on May 06, 2015, and is not required to provide proof of Living Wage Compliance because it is supplying a commodity.
Funds to finance the purchase for the first year are included in the approved FY 16 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: Steven D. Powers, City Administrator
Body
Whereas, The City’s Wastewater Treatment Plant (WWTP) uses ferric chloride for phosphorus removal to meet its permit requirements;
Whereas, Kemira Water Solutions, Inc. submitted the lowest responsible bid for supplying ferric chloride to the WWTP per the specifications in ITB-4385;
Whereas, Kemira Water Solutions, Inc. has received Contract Compliance approval from Human Resources and is not required to provide proof of Living Wage Compliance because it is supplying a commodity; and
Whereas, Funds have been budgeted in the Public Services Sewage Disposal Fund WWTP Operation and Maintenance budget for FY16 and approval for subsequent years is subject to the availability of funding;
RESOLVED, That City Council approve the purchase of ferric chloride from Kemira Water Solutions, Inc. for the WWTP in accordance with Bid No. ITB-4385;
RESOLVED, That the City Administrator be directed to enter into an agreement in accordance with this resolution at a projected cost of approximately $50,000.00 per year for the next one year; and
RESOLVED, That the City Administrator be authorized to renew the agreement for up to three one-year periods after the initial one-year period provided both parties agree to an extension pending subsequent budget approvals.