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TO:

Honorable Mayor and Members of the Common Council

FROM:

Steven M. Gohde, Assistant Director of Public Works/Utilities General Manager

DATE:

January 14, 2025

SUBJECT:

Res 25-04 Award Bid to Martelle Water Treatment, Inc. for Rare Earth Chloride Solution for the Wastewater Treatment Plant for 2025 ($705,600)

BACKGROUND

This is the bid for a proprietary operational treatment chemical used for phosphorus removal at the Wastewater Treatment Plant (WWTP). The WWTP has historically used Ferric Chloride for phosphorus removal in its treatment process. In June 2024, the Common Council (Council) approved a pilot study and waiver of purchasing requirements for a rare earth chemical known as Neo WaterFX 300 from Martelle Water Treatment, Inc. (Res. No. 24-334). The original two (2) month pilot yielded promising results, and the staff of the WWTP requested, and were granted, an extension of the pilot study through the end of 2024 (Res. No. 24-511).

ANALYSIS

Working in conjunction with the WWTP staff, Purchasing reviewed and prepared a proposal seeking vendors for this chemical. The bid due date is listed on the attached bid tab. Because this is a proprietary chemical, a single bid was accepted from the sole provider. This vendor met the minimum bid specification.

FISCAL IMPACT

This chemical will be used to replace Ferric Chloride for phosphorus removal. The Council has previously accepted a bid for Ferric Chloride ($475,500) as part of chemical package for both the Water Filtration/Wastewater Treatment Plants for 2025 (Res. No. 24-639). The cost estimate for the Rare Earth Chloride is significantly higher based on estimated quantities needed; however, the pilot study has indicated that, by using this chemical, a cost recovery can be realized in other parts of the treatment process, which will make the overall use of this product cost neutral. Staff further believes further process modifications will allow the quantity needed for treatment to be reduced. Additionally, Ferric Chloride is considered a hazardous material and is listed in annual Tier II reporting, whereas the Neo WaterFX 300 is not considered hazardous.

Based on the bid, the estimated 2025 fiscal impact of this chemical (based on its unit price multiplied against its estimated quantity), and charged to Account No. 05511910-1507 (Sewer Utility Administration-Inv – Chemicals), the recommended vendor award is as follows:

Chemical and Plant

2024 Est. Cost

2025 Est. Cost

Reommended Award

Rare Earth Chloride / WWTP

---

$705,600

Martelle Water Treatment, Inc.

RECOMMENDATION

The Department of Public Works recommends the Council award the chemical bid to the vendor as indicated above and on the attached bid tab.

Attachments

RES 25-04

Rare Earth Chemical Bid Tab