Title
Ferric Chloride - Amendment (Ordinance S-50278)
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, as needed, by the Water Services Department. Further request to authorize the City Controller to disburse all funds related to this item. The additional expenditures will not exceed $7,750,000.
Report
Summary
The purpose of the amendment is to provide additional funds to Agreement 150561 with Kemira Water Solutions, which will allow for the as needed purchase of ferric chloride to assist in the Water Production and Wastewater Treatment processes. Ferric chloride is used in the water and wastewater industry as a coagulant and flocculant to help remove impurities and suspend partials from water, making it suitable for treatment and safe for discharge into the environment.
Due to rising costs incurred by chemicals over the past several years this agreement requires additional funding to support the purchase of ferric chloride until procurement solicits for a new contract to begin July 1, 2024.
Contract Term
The agreement 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. This amendment will increase the authorization for the agreement by an additional $7,750,000, for a new total not-to-exceed agreement value of $74,750,000.
Concurrence/Previous Council Action
The City Council approved:
- Ferric Chloride Agreement 150561 (Ordinance S-45892) on July 3, 2019.
Department
Responsible Department
This item is submitted by Deputy City Manager Ginger Spencer and the Water Services Department.