Title
Requisition Nos: REQ-0002544, REQ-0002546, REQ-0002551, REQ-0002552,
REQ-0002556, REQ-0002557, REQ-0002615
Liquid Chlorine - 1-Ton Containers
O&M
Body
Agenda of: February 26, 2025
Item No.: 2025-044
Amount: $6,734,200.00
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 29, 2025
RE: Requisition Nos: REQ-0002544, REQ-0002546, REQ-0002551,
REQ-0002552, REQ-0002556, REQ-0002557, REQ-0002615
Liquid Chlorine - 1-Ton Containers
Vendor: JCI Jones Chemicals, Inc. and Pencco, Inc.
Status: New Contract/PO
MOTION
Upon recommendation of Cheryl Porter, Chief Operating Officer - Water and Field Services, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to enter into REQ-0002544, REQ-0002546, REQ-0002551, REQ-0002552, REQ-0002556, REQ-0002557, REQ-0002615 “Liquid Chlorine - 1-Ton Containers” with JCI Jones Chemicals, Inc. and Pencco, Inc., at a cost not to exceed $6,734,200.00 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
Liquid chlorine is used as a disinfectant to eliminate harmful bacteria and viruses that may be found in drinking water. Chlorine also provides protection of water quality in the delivery of water in its conveyance through the transmission and distribution system. Chlorination of public water supplies represents the most important process used in the production of water of safe and sanitary quality. This contract is for liquid chlorine in one-ton containers to be delivered to GLWA’s five (5) water treatment plants upon request.
JUSTIFICATION
Liquid chlorine is required for the five (5) water treatment plants to be used as a disinfectant to eliminate harmful bacteria and viruses that may be found in drinking water. It is an essential element in the water treatment and distribution process.
FINANCIAL PLAN IMPACT
Summary: The agreement with JCI Jones Chemicals and Pennco encompasses Operations & Maintenance expense only. The budget was based on prior usage of liquid chlorine over the prior contract periods. The value of the proposed agreement is within the current financial plan in total and there are sufficient funds available for this project.
Funding Source: Operations & Maintenance (O&M) Budget
Cost Center(s): Water Works Park…………Water Operations cost center 882131
Springwells WTP…………Water Operations cost center 882141
Northeast WTP……….……Water Operations cost center 882151
Southwest WTP……………Water Operations cost center 882161
Lake Huron WTP…………Water Operations cost center 882171
Expense Type: Chemicals - Liquid Chlorine
Estimated Cost by Year and Related Estimating Variance: See table below.
Fiscal Year Amount
FY 2025 Budget (prorated 4 months) $ 1,122,367.00
FY 2026 Financial Plan 3,367,100.00
FY 2027 Financial Plan (prorated 8 months) 2,244,733.00
Financial Plan Estimate $ 6,734,200.00
Proposed Contract Amount $ 6,734,200.00
Variance (positive/ (negative)) $ 0.00
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.