Title
Requisition: REQ-0002580
Liquid Chlorine - Rail Cars
O&M
Body
Agenda of: February 26, 2025
Item No.: 2025-040
Amount: $7,698,600.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: January 27, 2025
RE: Requisition No. REQ-0002580
Liquid Chlorine - Rail Cars
Vendor: JCI Jones Chemicals Inc
Status: New Contract/PO
MOTION
Upon recommendation of Navid Mehram, Chief Operating Officer - Wastewater Operating Services, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to enter into Requisition No. REQ-0002580, “Liquid Chlorine - Rail Cars” with JCI Jones Chemicals Inc, at a cost not to exceed $7,698,600.00 for a duration of two (2) years; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The Water Resource Recovery Facility (WRRF) uses chlorine for disinfecting the effluent before discharging into the Detroit River or Rouge River. Disinfection of wastewater is critical for the protection of public health and required by the GLWA National Pollutant Discharge Elimination System (NPDES) Permit. The Chlorine solution is mixed with final effluent to remove or inactivate pathogens such as bacteria and viruses that can cause disease in humans and animals.
JUSTIFICATION
GLWA’s National Pollutant Discharge Elimination System (NPDES) Permit, requires the plant effluent to be disinfected before discharging into either the Detroit River or the Rouge River. Chlorine is used to disinfect the effluent to remove or inactivate harmful bacteria and viruses and minimize any negative impact on the public’s health. This contract covers the delivery of liquid chlorine, as needed, to the chlorination facility at WRRF.
FINANCIAL PLAN IMPACT
Summary: The proposed contract for chlorine was anticipated as an on-going component of the wastewater financial plan. The volume of these chemicals may vary by year which could possibly require an amendment to that years’ financial plan. Should this occur, a budget amendment may be required, first from other chemical budgets, secondly from other budgeted areas, and finally from the wastewater unallocated reserves. There are sufficient funds in the financial plan to cover this proposed contract.
Funding Source: Operations and Maintenance Budget (5960)
Cost Center: Wastewater Secondary Processing (892224)
Expense Type: Chemicals - Liquid Chlorine (621600)
Estimated Cost by Year and Related Forecast Variance:
Fiscal Year Amount
FY 2025 Budget (Prorated) $657,670.00
FY 2026 Forecast $3,888,000.00
FY 2027 Forecast (Prorated) $3,240,000.00
Total Financial Plan $7,785,670.00
Maximum Requisitions $7,698,600.00
Forecast Variance (Negative)/Positive $87,070.00
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on February 12, 2025. The Operations and Resources Committee unanimously recommended that the GLWA Board adopt the resolution as presented.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.