Title
Ferric Chloride - Amendment (Ordinance S-50770)
Description
Request to authorize the City Manager, or his designee to allow additional expenditures under Agreement 150561 with Kemira Water Solutions, Inc. for the purchase of Ferric Chloride for Water Services Department. Further request to authorize the City Controller to disburse all funds related to this item. The additional expenditures will not exceed $7,700,000.
Report
Summary
The purpose of the amendment is to provide additional funds which will allow Water Services Department (WSD) to continue to purchase ferric chloride until the new contract is awarded. Ferric chloride is a key component utilized in the process of water purification for the water production and wastewater treatment processes. Due to the rising costs incurred by chemicals over the past several years, this agreement requires additional funding to support the purchase of ferric chloride until the new contract is in place, which begins July 1, 2024.
Contract Term
The contract term remains unchanged, ending on June 30, 2024.
Financial Impact
The initial authorization for ferric chloride was for an expenditure not-to-exceed $67,000,000. An amendment increased the authorization for the agreement by $7,750,000 bringing the authorization to $74,750,000. This amendment will increase the authorization for the agreement by an additional $7,700,000 for a new total not-to-exceed agreement value of $82,450,000.
Funding is available in the Water Services Department's Operating budget.
Concurrence/Previous Council Action
The City Council approved:
- Ferric Chloride Agreement 150561 (Ordinance S-45892) on July 3, 2019.
- Ferric Chloride Agreement 150561 (Ordinance S-50278) on Nov. 1, 2023.
Department
Responsible Department
This item is submitted by Deputy City Manager Ginger Spencer and the Water Services Department.