Print Staff Memo

TO:

Honorable Mayor and Members of the Common Council

FROM:

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

DATE:

September 24, 2024

SUBJECT:

Res 24-511 Approve Extension of Approved Pilot Study, Waiver of Purchasing Requirements, and Purchase of Phosphorus Reduction Rare Earth Mineral Chemical Compound from Martelle Water Treatment, Inc. (estimated $255,000)

BACKGROUND

The City of Oshkosh's (City) Wastewater Treatment Plant (WWTP) is subject to discharge regulations through the Wisconsin Discharge Elimination System permit program, managed by the Wisconsin Department of Natural Resources. In order to meet the Phosphorus Discharge Permit Limit, the WWTP currently uses the chemical addition of Ferric Chloride to bind and sequester Phosphorus, which is then precipitated in solid form, and removed in the biosolids. The City still intends to build and operate a tertiary filtration facility at the WWTP to meet future reduced discharge limits for Phosphorus, but must continue to use a chemical addition to meet current limits during the interim period.

ANALYSIS

The Department of Public Works is proposing to extend a pilot test using a proprietary chemical known as Neo WaterFX 300 as a replacement to the Ferric Chloride. The original pilot study and waiver of purchasing requirements was approved by Common Council (Council) at the June 25th Council meeting under Resolution No. 24-334. The initial trial period has yielded some impressive results, and WWTP staff are interested in continuing the trial through the end of 2024.

One of the initial results observed by the WWTP staff included a decrease in sludge volume which needed to be processed and removed. This reduction resulted in less polymer usage and lower disposal rates. This was predicted to be one of the main advantages of the use of this chemical. It is also less corrosive, which should lead to longer operational life of some equipment and a safer work environment for staff. Additionally, staff have observed some operational changes, which seemingly make the treatment process run more predictably.

Rare earth mineral compounds are derived from the waste products of materials principally mined for electric vehicle (EV) battery production. The use of these compounds in wastewater treatment is not new, but the surge in mining for materials to produce EV batteries has made them more readily available, and therefore, more financially competitive. The chemical cost to switch from Ferric Chloride to Neo WaterFX 300 is expected to be neutral. The cost of Neo WaterFX 300 is approximately four (4) times the cost of Ferric Chloride on a unit cost basis; however, due to the expected increase in performance, only about a quarter of the volume of Neo WaterFX 300 will be needed to achieve the same result.

The cost savings occur due to how the chemical interacts with Phosphorus, and how much chemical sludge is produced. It is expected, based on performance estimates, the WWTP could significantly reduce the amount of sludge produced and subsequently treated by dewatering. This would in turn result in a savings on polymer costs, as well as sludge hauling and disposal fees.

FISCAL IMPACT

The costs for the purchase of six (6) additional loads of Neo WaterFX 300 required for the continuation of the pilot testing through the end of 2024 will exceed $25,000. The cost of the purchase is expected to be approximately $255,000 in additional funding to extend the trial period. The initial resolution allowed for a trial period of two (2) months at a cost of approximately $82,000. This extension will bring the total cost to $337,000. Funding for this purchase of the additional chemicals is included in the 2024 Sewer Utility Operating Budget (Account #05511940-6542 / Disposal Plant-Chemicals).

RECOMMENDATION

In order to ensure acquisition of the Neo WaterFX 300, it is requested the Council approves the extension of the pilot study, waives the purchasing requirements of Section 12-10 of the Municipal Code of the City of Oshkosh, and approves the purchase of the additional loads of Neo Water FX300.

Please advise me if you have any questions concerning this purchase.

Attachments

Res 24-511