Title
Requisition No.’s: REQ-0001999, REQ-0002136, REQ-0002137
Sodium Hypochlorite
O&M
Body
Agenda of: December 11, 2024
Item No.: 2024-433
Amount: $6,298,968.75
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: December 9, 2024
RE: Requisition No.’s: REQ-0001999, REQ-0002136, REQ-0002137
Sodium Hypochlorite
Vendor: PVS Nolwood Chemical 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 Requisitions No. REQ-0001999, REQ-0002136 and REQ-002137, “Sodium Hypochlorite” with PVS Nolwood Chemical Inc., at a cost not to exceed $6,298,968.75 for a duration of 14 Months; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
Sodium hypochlorite is used as the disinfectant at our nine combined sewer overflow (CSO) facilities, as well as at the Water Resource Recovery Facility during wet weather operations. Disinfection is the final step in the wastewater treatment and is required by the National Pollutant Discharge Elimination System (NPDES) permit.
JUSTIFICATION
To maintain compliance with the GLWA NPDES permit, reliable supply of sodium hypochlorite is necessary to ensure disinfection from our treatment facilities prior to discharge to receiving water bodies.
During and after Covid-19, the chemical prices increased sharply due to short supply. Although the volume of sodium hypochlorite used was within the budgeted amount, due to the sharp rise and volatility in the prices, the funds depleted earlier than anticipated. Therefore, we are requesting the Board to approve REQ-0001999, REQ-0002136 and REQ-0002137 for Sodium Hypochlorite to fund the existing Requisitions that have been depleted and support the upcoming calendar year services for sodium hypochlorite. Furthermore, the GLWA procurement team will continue to research market trends and identify timing for competitive bidding.
FINANCIAL PLAN IMPACT
Summary: The proposed requisitions for Sodium Hypochlorite were anticipated as an ongoing component of the wastewater financial plan. The volume of these chemicals varies by year which could possibly require an amendment to that years’ financial plan. Should this occur a budget amendment would be processed, 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 for these requisitions.
Funding Source: Operations and Maintenance Budget (5960)
Cost Centers: Wastewater Secondary Processing (CC892224)
All Combined Sewer Overflow Facilities (CC892271 - CC892279)
Expense Type: Chemicals - Sodium Hypochlorite (621600)
Estimated Cost by Year and Related Estimating Variance:
Fiscal Year Amount
FY 2025 Budget (Prorated) $3,519,250.00
FY 2026 Forecast (Prorated) 3,016,500.00
Total Budget $6,535,750.00
Maximum Requisitions $6,298,968.75
Forecast Variance (Negative)/Positive $236,781.25
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on December 11, 2024.
SHARED SERVICES IMPACT
The proposed procurement of this item will be shared by the GLWA and DWSD as outlined in the Shared Services Agreement OPS-008.