Placement: Consent Agenda
Action Requested: Motion / Vote
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Approve Amendment #2 for Contract # 20180029 to Purchase Magnesium Hydroxide and Equipment Services from Premier Magnesia, LLC.
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Submitted By: Jason Bezak, CPPB, NIGP-CPP, Procurement Agent II, Procurement Management Department (PMD).
Strategic Plan Link: The City's Goal of high-quality infrastructure and facilities.
Summary Brief (Agreements/Contracts only)
1. Prepared by: Jason Bezak, CPPB, NIGP-CPP.
2. Parties: City of Port St. Lucie and Premier Magnesia, LLC.
3. Purpose: This product is used to control odor, reduce corrosion, reduce collection system gas binding, and to help maintain minimum alkalinity levels for the nitrification process at the Wastewater Treatment Plants (WWTP).
4. New/Renewal/Modified: Modified.
5. Duration: Continuing Contract.
6. Benefits to Port St. Lucie: Provide odor control for residents and enhance City equipment’s life span.
7. Cost to Port St. Lucie (Annual and Potential): The Original price per gallon was $2.753. At $2.753/gallon, the estimated annual expenditures for these goods and services were $450,000 based on the City’s ordering volume. The Price Increase to $3.11/gallon revises the City’s estimated annual expenditures to $520,000.
Presentation Information: N/A.
Staff Recommendation: Move that the Council approve Amendment #2 for Contract # 20180029 to purchase Magnesium Hydroxide and Equipment Services from Premier Magnesia, LLC.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve Amendment #2 for Contract # 20180029.
2. Move that the Council not approve Amendment #2 for Contract # 20180029.
Background: The Glades Wastewater Treatment Facility (GWWTF) and Westport Wastewater Treatment Facility (WPWWTF) are currently in the process of optimizing their process and reducing the amount of hydrogen sulfide that the facility is experiencing. During the April 11, 2016 City Council meeting, it was discussed that the Utility is seeing a high level of hydrogen sulfide throughout the collection system and at the treatment facilities that is causing extensive damage to the concrete structures and mechanical components throughout the system.
The City began a pilot program to determine which firm’s product would meet the needs of the WPWWTF best and would cause the least amount of disruption throughout the wastewater facility. The pilot study determined that Premier Magnesia, LLC’s product would be the best fit for what is currently needed at the GWWTF. Their product would not only help to optimize the process but also reduce the levels of hydrogen sulfide to an acceptable level without causing any health and safety issues or rapid mechanical component deterioration. The City tested Premier Magnesia, LLC’s product with a thirty-day trial and a six-month study. Both tests were completed with satisfactory outcomes.
Issues/Analysis: Staff reviewed the price increase request from Premier Magnesia, LLC and found it fair and reasonable. The Utilities System Department requires a firm to supply all the equipment necessary for the injection of this chemical. While there are other firms that sell magnesium hydroxide, Premier Magnesia is the only firm that provides all the equipment associated with injecting the product. Purchasing the equipment separately would be costly both from an acquisition and maintenance perspective.
Financial Information: Funds are appropriated in the FY21-22 budget in Utilities. Future expenditures will be as budget allows.
Special Consideration: N/A.
Location of Project: Various Lift Stations throughout the City.
Attachments:
1.) Vendor Executed Amendment #2.
2.) Premier Magnesia Price Increase Request.
3.) Amendment #1.
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: 7881.
Legal Sufficiency Review:
Reviewed by Ella M. Gilbert, Deputy City Attorney. Approved as to Legal form and sufficiency by James D. Stokes, City Attorney.