#09 Magnesium Hydroxide Contracts — original pdf

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..Body Item 9 Water & Wastewater Commission: November 13, 2024 Council: November 21, 2024 Posting Language ..Title Recommend approval to authorize execution of two contracts for magnesium hydroxide slurry for Austin Water with Forsythe Brothers Infrastructure, LLC, and Garrison Minerals LLC, each for an initial term of three years with two one-year extension options, for total contract amounts not to exceed $49,100,000 divided between the contractors equally or the Department may choose any contractor that has the available product. Funding in the amount of $9,001,667 is available in the Fiscal Year 2024-2025 Operating Budget of Austin Water. Funding for the remaining contract term is contingent upon available funding in future budgets. Lead Department Financial Services Department. Client Department(s) Austin Water. Purchasing Language: The Financial Services Department issued an Invitation for Bids IFB 2200 RGW1017REBID for these goods and services. The solicitation was issued on May 20, 2024, and closed on July 2, 2024. Of the four offers received, the recommended contractors submitted the lowest responsive offers. A complete solicitation package, including a tabulation of the bids received, is available for viewing on the City’s website. This information can currently be found at https://financeonline.austintexas.gov/afo/account_services/solicitation/solicitation_details.cfm?sid=14100 MBE/WBE: This solicitation was reviewed for subcontracting opportunities in accordance with City Code Chapter 2-9B (Minority-Owned and Women-Owned Business Enterprise Procurement Program). For the goods and services required for this solicitation, there were no subcontracting opportunities; therefore, no subcontracting goals were established. Council Committee, Boards and Commission Action: November 13, 2024 - To be reviewed by the Water and Wastewater Commission. Additional Backup Information: The contracts will provide a turnkey chemical storage and feed system designed for magnesium hydroxide slurry at designated wastewater treatment plants and sites. Magnesium hydroxide slurry is essential for alkalinity supplementation and pH adjustment to the wastewater treatment process. Alkalinity supplementation and pH adjustment are required due to industrial ammonia loadings, water conservation efforts, and water softening at the water treatment plants. Maintaining stable pH levels is critical in the biological wastewater treatment process. These contracts will replace two existing contracts that expire December 2024 and February 2025. The requested authorization amount was determined by departmental estimates, historical spend, and forecasted usage. One of the recommended contractors is the current provider for these goods and services. If the City is unable to secure these contracts, the City will not have a continuous source for magnesium hydroxide slurry, which would result in lower pH levels in the biological wastewater treatment process. Allowing pH levels to drop significantly due to the lack of alkalinity would hinder and cease the biological treatment process, leading to violations of Texas Pollutant Discharge Elimination System permits for pH and ammonia issued by the Texas Commission on Environmental Quality.  Item 9 Water & Wastewater Commission: November 13, 2024 Council: November 21, 2024 Contract Details: Contract Term Initial Term Optional Extension 1 Optional Extension 2 Total Note: Contract Authorization amounts are based on the City’s estimated annual usage. Length of Term 3 years 1 year 1 year 5 years Contract Authorization $29,460,000 $9,820,000 $9,820,000 $49,100,000