Title
Ferric Chloride Contract (Ordinance S-44017)
Description
Request to authorize the City Manager, or his designee, to ratify a contract with Kemira Water Solutions, Inc. (Kemira), to supply ferric chloride to the Water Services Department. Further request making funds approved under Ordinance S-43121 available to pay Kemira for this product. Request authorization for the City Controller to disburse all funds related to this item. The total contract will not exceed $5,441,448.
Report
Summary
On Dec. 14, 2016, City Council authorized the City Manager to execute two separate contracts with Pencco, Inc., to supply ferric chloride for four of Phoenix's water and wastewater treatment plants and Kemira Water Solutions, Inc., to provide ferric chloride for two of Phoenix's water and wastewater treatment plants. Ferric chloride is a necessary chemical for water and wastewater treatment. Due to severe weather in Houston, where Pencco, Inc., is located, Pencco is unable to perform as required under Contract No. 144223, and therefore the Water Services Department elected to terminate the contract with Pencco. As a precaution, City Council authorized an emergency contract with Thatcher Company of Arizona, Inc., to provide required quantities of ferric chloride to ensure no disruption in service. Staff has determined that Kemira Water Solutions, Inc., has the capability to provide necessary long-term quantities of ferric chloride to all water and wastewater treatment plants.
Contract Term
The contract term is for one year, effective Oct. 1, 2017, through Sept. 30, 2018, with one six-month extension.
Financial Impact
The total contract will not exceed $5,441,448. 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 authorized the City Manager to execute two separate contracts with Pencco, Inc., and Kemira Water Solutions, Inc., to provide ferric chloride. On Sept. 20, 2017, City Council approved Ordinance S-43928, in the amount of $5,573,568, for the emergency contract with Thatcher Company of Arizona, Inc.
Location
91st Avenue Wastewater Treatment Plant, 23rd Avenue Wastewater Treatment Plant, 24th Street Water Treatment Plant, and 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.