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ADOPT A RESOLUTION TO AUTHORIZE CONTRACT AMENDMENT NO. 6 WITH EVOQUA WATER TECHNOLOGIES TO PURCHASE HYDROGEN PEROXIDE AND SERVICE SOFTWARE FOR WASTEWATER TREATMENT
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to authorize Contract Amendment No. 6 with Evoqua Water Technologies LLC, of Chicago, Illinois, (Exhibit 1 to the Resolution) for the purchase of hydrogen peroxide and service software for wastewater treatment and fund Contract Amendment No. 6 in the amount of $200,000 for a total contract not-to-exceed amount to $2,129,260.
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) is comprised of 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 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 operations staff uses chemicals including ferric chloride and hydrogen peroxide to reduce hydrogen sulfide concentrations in wastewater. Hydrogen Sulfide is a corrosive compound that in high concentrations can cause premature infrastructure failure and costly repairs.
If approved, Contract Amendment No. 6 will add $200,000 to the existing contract with Evoqua Water Technologies to purchase hydrogen peroxide and provide monitoring equipment/service software for wastewater treatment. If approved, Contract Amendment No. 6 will revise the total contract amount to $2,129,260.
DISCUSSION
Background
Ferric chloride and hydrogen peroxide are currently used at the RWCF to reduce hydrogen sulfide concentrations in the wastewater prior to entering various treatment processes.
Hydrogen sulfide is a corrosive compound that can lead to premature infrastructure failure and costly equipment repairs. To help protect wastewater treatment infrastructure and equipment, hydrogen peroxide is injected into the wastewater influent before it enters the treatment process. Evoqua Water Technologies LLC (Evoqua) owns proprietary software and hydrogen sulfide monitors that control chemical dosing rates. The software and monitors adjust chemical dosing rates based on the potency of wastewater entering the RWCF.
On August 20, 2019, by motion 2019-08-20-1111, the City Council authorized a five-year contract with Evoqua for $1,648,150. The contract included the rental of a hydrogen peroxide storage tank, service software, and the purchase of hydrogen peroxide for wastewater treatment, and was set to expire on June 30, 2024. Additional adjustments to the original contract, all under the City Manager’s contracting authority, include the following:
1. Contract Change Orders to the original contract totaling $51,110 and $30,000 were executed in April and May 2020, which added $81,110 to the contract to fund additional chemical purchases. These change orders revised the original not-to-exceed contract cost to $1,729,260.
2. Amendment No. 1, approved in September 2021, accepted price increases, demobilized the chemical storage and feed system, and removed the monthly cost of equipment rental with no change to the contract amount.
3. Amendment No. 2, approved in August 2022, accepted price increases, increased contract funding by $200,000, and revised the total contract amount to $1,929,260.
4. Amendment No. 3, approved in August 2023, accepted price increases with no change to the contract amount.
5. Amendment No. 4, approved in July 2024, accepted price decreases and extended the contract to June 30, 2025 with no change to the contract amount.
6. Amendment No. 5, approved in July 2025, accepted price decreases and extended the contract to June 30, 2026, with no change to the contract amount.
Present Situation
MUD operations staff expect continued high demand for hydrogen peroxide for wastewater treatment. Staff has determined, based on projected use and unit price, that an additional $200,000 is required to ensure adequate supply through June 30, 2026.
If approved by the City Council, Contract Amendment No. 6 will add $200,000 to the contract for a total not-to-exceed amount of $2,129,260.
FINANCIAL SUMMARY
There are sufficient funds available for the proposed Contract Amendment No. 6 in the Wastewater Operations Division account number 6513-000-650005-610-000-00-65-000-000.
This action has no impact on the General Fund or any other unrestricted funds.