Title
Water, Wastewater, and Lift Station Treatment Chemicals
Action
Action:
A. Approve unit price contracts for the purchase of water, wastewater, and lift station treatment chemicals for an initial term of one year to the following:
- Premier Magnesia, LLC,
- JCI Jones Chemicals, Inc.,
- EWT Holdings III Corp. dba Evoqua Water Technologies LLC,
B. Approve the purchase of magnesium hydroxide, by the sole source exemption,
C. Approve a contract with Premier Magnesia, LLC for the purchase of magnesium hydroxide for an initial term of one year, and
D. Authorize the City Manager to renew the contracts for up to one, one-year term with possible price adjustments and to amend the contracts consistent with the purpose for which the contracts were approved.
Body
Staff Resource(s):
David Czerr, Charlotte Water
Ron Hargrove, Charlotte Water
Sole Source Exemption
§ G.S. 143-129 (e)(6) provides that formal bidding requirements do not apply when:
- Performance or price competition are not available;
- A needed product is available from only one source or supply; or
- Standardization or compatibility is the overriding consideration.
§ Sole sourcing is necessary for this contract because there is only one supply source.
§ City Council approval is required for any purchases made under the sole source exception.
Explanation
§ Charlotte Water uses a variety of chemicals in the water and wastewater treatment process, and each chemical plays an essential role to ensure the treated water is safe for customers and the environment and to eliminate odor and corrosion in the wastewater collection system.
Action A:
§ On January 20, 2020, the city issued an Invitation to Bid (ITB) for chlorine gas; two bids were received.
§ On June 1, 2020, the city issued an ITB for calcium nitrate and ferrous chloride; two bids were received.
§ The companies selected were the lowest responsive, responsible bidders.
§ Annual expenditures are estimated to be $1,226,600.
Actions B and C:
§ Premier Magnesia, LLC is the only source of supply for the required magnesium hydroxide.
§ Annual exepnditures are estimated to be $2,800,800.
Charlotte Business INClusion
Action A:
Per Charlotte Business INClusion Policy: Part C: Section 2.1(a), the city shall not establish Subcontracting Goals for Contracts where: (a) there are no subcontracting opportunities identified for the Contract; or (b) there are no MWBEs or SBEs certified to perform the scopes of work that the city regards as realistic opportunities for subcontracting.
These contracts meet the provisions of (a) - No subcontracting opportunities, and
Action B and C:
This is a sole source contract and is exempt (Part A: Appendix 1.27 of the Charlotte Business INClusion Policy).
Fiscal Note
Funding: Charlotte Water Capital Investment Plan