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ADOPT A RESOLUTION TO AUTHORIZE CONTRACT AMENDMENT NO. 5 WITH KEMIRA WATER SOLUTIONS FOR THE PURCHASE OF FERRIC AND FERROUS CHLORIDE FOR WASTEWATER TREATMENT
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to authorize Contract Amendment No. 5 with Kemira Water Solutions, Inc., of Lawrence, Kansas, for the purchase of ferric chloride and ferrous chloride for wastewater treatment in the amount of $910,000 for a total contract not-to-exceed amount of $6,369,391.
It is further recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of the resolution.
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Summary
The Municipal Utilities Department (MUD) includes three enterprise funds including Water, Wastewater, and Stormwater Utilities. The Wastewater Utility includes a sanitary sewer collection system of approximately 900 miles of gravity sewer main, 554 miles of lower lateral pipe, 27 pump stations, and 30 miles of pressurized force main that route sewage to the Regional Wastewater Control Facility (RWCF) for treatment. The system collects sewage from properties within the City, special districts outside the City, and certain areas within San Joaquin County. The RWCF is an advanced tertiary treatment facility with a 55 million-gallon per day (MGD) capacity and is located adjacent to the San Joaquin River.
The RWCF Modifications Project replaced the trickling filter system with an activated sludge process, which is more efficient but generates more biological sludge. Elevated sludge levels result in more hydrogen sulfide gas production in the anaerobic digesters. Ferric chloride is added to lower the hydrogen sulfide gas production.
If approved, Contract Amendment No. 5 (Exhibit 1 to the Resolution) to the existing contract with Kemira Water Solutions, Inc. will add $910,000 to purchase additional ferric chloride for a total contract not-to-exceed amount of $6,369,391.
DISCUSSION
Background
Wastewater treatment requires the use of various chemicals to reduce hazardous conditions and remove specific impurities. The RWCF Modifications Project replaced the secondary wastewater treatment system from a trickling filter process to an activated sludge process. Activated sludge treatment process uses aeration tanks and microorganisms to break down organic matter. This method is efficient but produces more biological sludge than a trickling filter system. Extra sludge generated must be processed in anaerobic digesters, where microorganisms break it down without oxygen. During digestion, a gas mixture is produced-commonly called digester gas-which can contain hydrogen sulfide. To protect sewer treatment infrastructure and plant personnel, treatment plants add ferric chloride, which reduces hydrogen sulfide gas formation.
The San Joaquin Valley Air Pollution Control District (SJVAPCD) regulates hydrogen sulfide in the digester gas. To meet regulatory requirements, it is necessary to purchase additional ferric chloride to control hydrogen sulfide gas production.
On March 22, 2022, by Resolution 2022-03-22-1213, the City Council authorized a $3,330,620 contract with Kemira Water Solutions, Inc. (Kemira) to purchase ferric chloride and ferrous chloride. The contract expires on December 31, 2026.
The following is a summary of amendments to the original contract agreement:
• In October 2022, Amendment No. 1 increased compensation by $125,000 to fund an increase in the cost of chemicals. The revised contract amount totaled $3,455,620.
• In March 2023, Amendment No. 2 advanced $500,000 from future funding to fiscal year 2022-2023. The total contract amount remained unchanged at $3,455,620.
• On September 26, 2023, by Resolution 2023-09-26-1203, the City Council approved Amendment No. 3 accepting a chemical cost adjustment lowering the unit price for both ferric chloride and ferrous chloride. It also increased the contract cost by $2,003,771, bringing the total to $5,459,391, due to the additional chemicals needed for the activated sludge treatment process.
• In January 2025, Amendment No. 4 accepted chemical price increases. The total contract amount remained at $5,459,391. The price changes are summarized below:
|
Fiscal Year |
Amendment # |
Date |
Added Amount |
Total Contract |
|
2021-2022 |
1 |
October 2022 |
$125,000.00 |
$3,455,620.00 |
|
2022-2023 |
2 |
March 2023 |
$0.00 |
$3,455,620.00 |
|
2023-2024 |
3 |
September 2023 |
$2,003,771.00 |
$5,459,391.00 |
|
2024-2025 |
4 |
January 2025 |
$0.00 |
$5,459,391.00 |
Present Situation
Staff reviewed the contract and determined that additional funds are needed to purchase chemicals through June 30, 2026. Ferric chloride will be procured through the formal Bay Area Chemical Consortium bid process. Staff will request City Council approval for a new contract starting July 1, 2026.
If approved, Amendment No. 5 will add $910,000 to the contract for these additional chemical purchases.
FINANCIAL SUMMARY
There is sufficient budget in account number 6513-000-650005-610-000-00-65-000-000-for Fiscal Year 2025-26 to purchase the necessary chemicals.
This action has no impact on the General Fund, or any other unrestricted fund.