Title
Resolution to Approve Ferric Chloride Purchase from Kemira Water Solutions, Inc. for the Wastewater Treatment Plant, ITB-4140 ($50,000.00 per year - estimated)
Memorandum
Your approval is requested to authorize the purchase of ferric chloride from Kemira Water Solutions, Inc. for the City's Wastewater Treatment Plant (WWTP), at an estimated cost of $50,000.00 per year for three years.
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-4140. There were two respondents to the invitation, from which WWTP staff requested best and final offers. The best and final offers from the two respondents are as follows:
· Kemira Water Solutions, Inc. $299 per dry ton
· PVS Technologies, Inc. $492 per dry ton
Plant staff reviewed the bids and best and final offers of each supplier, and recommends Kemira Water Solutions, Inc. be approved as the lowest responsible bidder. It is further recommended that the purchase of ferric chloride from Kemira Water Solutions, Inc. be approved for a three-year period with two one-year renewals by mutual agreement.
Kemira Water Solutions, Inc. received Contract Compliance approval from Human Resources on May 12, 2011. Kemira Water Solutions, Inc. is not required to provide proof of Living Wage Compliance because it is supplying a commodity.
Funds to finance the FY12 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: Ed Sajewski, Contract and Project Services Manager, WWTP
Reviewed by: Sue F. McCormick, Public Services Administrator
Approved by: Tom Crawford, Interim 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-4140;
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 FY12 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-4140;
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 three years;
RESOLVED, That the City Administrator be authorized to renew the agreement for up to two one-year periods after the initial three-year period provided both parties agree to an extension; and
RESOLVED, That the City Administrator or designee be authorized to take the necessary administrative actions to implement this resolution.