Agenda Item Wording:
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Award a sole source contract for ferric chloride - Authorize the City Manager to award a 1-year sole source contract to Pencco, Inc. for the supply of ferric chloride to the Water Reclamation Facility) for an amount not to exceed $125,000.
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Deadline for Action: 11/18/2024
Submitting Department: Public Works
Contact Name and Phone Number: Ben Litwack, Public Works Manager, 559-713-4671, ben.litwack@visalia.city <mailto:ben.litwack@visalia.city>
Department Recommendation:
Staff recommends that Council authorize the City Manager to award a 1-year sole source contract to Pencco, Inc. for the supply of ferric chloride to the Water Reclamation Facility (WRF) for an amount not to exceed $125,000.
Background Discussion:
The WRF utilizes ferric chloride to control the production of corrosive hydrogen sulfide gas within the anaerobic digesters. During the wastewater treatment process, renewable methane gas is produced in the WRF’s anaerobic digesters. This gas is currently flared off but will soon be used to fuel a 1-megawatt generator, offsetting the electrical requirements of the facility. Due to the chemistry involved in the wastewater treatment process, the methane produced in the anaerobic digesters contains hydrogen sulfide gas. In order to comply with permits issued by the San Joaquin Valley Air Pollution Control District (SJVACPD), the hydrogen sulfide concentration cannot exceed 200 parts per million. To achieve the level of removal needed, ferric chloride is added to the digesters to control hydrogen sulfide production. The WRF uses approximately 95 dry tons of ferric chloride per year.
Pencco is the City’s current supplier of ferric chloride and was awarded the contract in 2019. Due to delays in the procurement process, the contract was previously extended by 6 months. The 6-month extension will expire on 11/21/2024 and due to ongoing delays in the bidding process, an immediate contract is needed to allow Pencco to continue to be utilized as the supplier while staff works to competitively re-bid the contract.
Fiscal Impact:
The WRF uses approximately 95 dry tons per year of ferric chloride. At the cost of $1,240 per ton, staff expects to spend roughly $117,800 per year. Therefore, staff is requesting a contract for $125,000 to cover any unanticipated additional needs. Sufficient funds are budgeted annually in the Wastewater Treatment Plant Operating budget (4332).
Prior Council Action: 05/06/2019: Council awarded an annual contract to Pencco, Inc. to supply ferric chloride to the WRF.
Other: N/A
Alternatives: N/A
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to authorize the City Manager to award a 1-year sole source contract to Pencco, Inc. for the supply of ferric chloride to the Water Reclamation Facility (WRF) for an amount not to exceed $125,000.
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Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: Pencco Quote