FROM: Robert Thompson, General Manager
Originator: Riaz Moinuddin, Director of Operations & Maintenance
SUBJECT:
title
LIQUID FERRIC CHLORIDE SPECIFICATION NO. C-2019-1037BD CONTINGENCY INCREASE
end
GENERAL MANAGER'S RECOMMENDATION
recommendation
RECOMMENDATION:
A. Approve a unit price contingency of $226 per dry ton (27%) to the Liquid Ferric Chloride Agreement with Pencco, Inc., Specification No.C-2019-1037BD, for the period beginning March 1, 2023 through June 30, 2023. New unit cost not to exceed $1,075 per dry ton delivered; and
B. Approve a unit price contingency of $310 per dry ton (32%) to the liquid Ferric Chloride Agreement with Kemira, Inc., Specification No.C-2019-1037BD, for the period beginning March 1, 2023 through June 30, 2023. New unit cost not to exceed $1,274.47 per dry ton delivered.
body
BACKGROUND
Ferric Chloride is used at both Orange County Sanitation District (OC San) treatment plants to enhance primary solids coagulation and maintain hydrogen sulfide levels below Air Quality Management District (AQMD) permit levels. Ferric Chloride also reduces plant odors and corrosion.
Pencco and Kemira notified staff in December of increases to current rates due to supply scarcity, escalating raw material pricing, shipping, and supply chain issues, and increases in transportation costs. Staff began negotiations and while rates could not be lowered, staff was able to maintain current rates through February instead of becoming effective January 1, 2023 as originally requested by both companies.
OC San is currently rebidding the Ferric Chloride contract which is anticipated to become effective May 1, 2023.
RELEVANT STANDARDS
* 24/7/365 treatment plant reliability
* Zero odor incidents/events under normal operating conditions for Plant Nos. 1 and 2
* Meet volume and water quality needs for the GWRS
PROBLEM
Pencco and Kemira notified staff of increases to their ferric chloride rates, both of which exceed the previ...
Click here for full text