Title
Contract No. RFB-1802179
Polymer Flocculant
Body
Agenda of: January 23, 2019
Item No: 2018-1088
Amount: $7,875,000.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: January 7, 2019
RE: Contract No. RFB-1802179
Polymer Flocculant
Vendor: Polydyne Inc.
MOTION
Upon the recommendation of Navid Mehram, Chief Operating Officer - Wastewater Operations, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to enter into Contract No. RFB-1802179 to secure a contract, in the amount of $7,875,000.00 for five years with Polydyne Inc. to supply Polymer Flocculant, and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
Polymers are organic substances that are used at the Water Resource Recovery Facility to improve the capture and dewatering efficiency by coagulating with solids to form a larger and more stable floc. Polymer addition in the dewatering process is critical to reducing solids in the recycle stream and increasing the percent solids content in the dewatered sludge cake, both of which significantly decrease the aggregate cost for wastewater treatment and biosolids disposal. This procurement requires the vendor to comply with local, State and Federal laws, ordinances, rules, and regulation pertaining to the safe transportation and handling of an organic polymer.
JUSTIFICATION
The dewatering process allows for handling and management of the removed solids separated from the treatment process. The process is essential for staying compliant with the facility’s NPDES permit.
FINANCIAL PLAN IMPACT
Summary: The Financial Plan was based on prior usage at approximately 39,697,000 pounds over the contract period with a 6% increase in contract cost. The bid price exceeds this forecasted change. Therefore, the maximum value of the contract exceeds the current Financial Plan in total. The use of this product may vary by year which could require a budget amendment based on that years’ annual forecast usage. This amendment would first come from potential positive variances of other chemicals before impacting the unallocated reserve.
Funding Source: Operations & Maintenance Budget
Cost Center: Wastewater Dewatering Processing (Sewerage cost center 892225)
Expense Type: Operating Supplies - Chemicals (5960-892225.000-621600-SD9140)
Estimated Cost by Year and Related Estimating Variance: See table below.
FY 2019 Budget (prorated) $416,670
FY 2020 Plan 679,000
FY 2021 Plan 746,900
FY 2022 Plan 821,600
FY 2023 Plan 830,400
FY 2024 Plan (prorated) 503,400
Financial Plan Forecast $3,997,970
Maximum Contract $7,875,000
Negative Estimated Variance -$3,877,030
SAVINGS, COST OPTIMIZATION, AND REVENUE ENHANCEMENT IMPACT
The award of this contract provides a variance of -$3,877,030 ($3,997,970 Financial Plan less $7,875,000 contract maximum).
The estimated annual quantity is dependent on the wastewater flow processed by the Water Resource Recovery Facility. The financial plan is based on a projected annual usage. This actual usage of the polymer may be less than the estimated annual quantity, thus decreasing the negative variance.
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on January 9, 2019. The Operations and Resources Committee unanimously recommended to refer this item to the full Board, subject to receiving a report from staff regarding cost benefit analysis and market review.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.