Title
Ferric Chloride Contract (Ordinance S-43928)
Description
Request to authorize the City Manager, or his designee, to ratify a contract entered with Thatcher Company of Arizona, Inc. (Thatcher), to supply ferric chloride needed for water and wastewater treatment. Further request making funds approved under Ordinance S-43121 also available to pay Thatcher for this product. Request authorization for the City Controller to disburse all funds related to this item. The total contract will not exceed $5,573,568.
Report
Summary
Pencco, Inc., an existing supplier of ferric chloride, has informed the City that Pencco is unable to perform as required under Contract No. 144223 because of the flooding in Houston. Pencco's main raw material supplier is located in Houston and is currently closed because of severe flooding of the material supplier's facility. As a result, Pennco is unable to supply ferric chloride to the Water Services Department (WSD) for an indefinite period of time. Ferric chloride is a crucial chemical required in the City's wastewater and water treatment plants. In addition to Thatcher, WSD requested quotes from the other two vendors that participated in the original solicitation. Thatcher is the sole vendor who is able to supply ferric chloride at this time. WSD entered into a contract with Thatcher to supply ferric chloride and prevent a disruption of water/wastewater treatment operations.
Contract Term
The contract term is for 6 months, effective Aug. 31, 2017, through Feb. 28, 2017, with one six-month extension.
Financial Impact
The total contract will not exceed $5,573,568. Funds are available on Ordinance S-43121.
Concurrence/Previous Council Action
The City Council approved Ordinance S-43121 on Dec. 14, 2016, in the amount of $44,000,000. The Ordinance also authorized the City Manager to execute two separate contracts with Pencco, Inc., and Kemira Water Solutions, Inc., to provide ferric chloride.
Location
91st Avenue Wastewater Plant, 23rd Avenue Wastewater Plant, 24th Street Water Treatment Plant, Union Hills Water Treatment Plant
Council Districts: 2, 6, and 7
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Water Services Department.