Loading...
HomeMy WebLinkAboutOps Committee Presentation - Ferric Chloride o NjRy SANI TqT o� FF We' re here for you . r Q 9 h 9or�cl/N� 7HE EN�AQ��W= Orange • Sanitation District Ferric Chloride Purchase Contract Awards operations Committee May 17 2013 rill" Treatment Plants Iron Salts Usage H2S Control Enhanced in Digesters Solids Odor & Removal Corrosion Control W�� Trickling Filters Headworks Solids Preliminary Collections Treatment primary A.S. Plants Processing System Treatment Secondary (Trunkl ne Treatment) Treatment Solids Storage & Disposal Multiple Contract Drivers • Long-Term Sustainability — 2010 Chemical Sustainability Study evaluated long-term sustainability of OCSD's bulk chemicals • Ferric chloride identified as a critical chemical — Single supplier for over a decade — OCSD has had previous experience with chemical supply disruption • Other POTWs have used multiple supplier contracts • Price Escalation — Since single supplier, unit costs have increased greater than 100% Historical Ferric Chloride Pricing $800 $700 May 2005 Kemiron $6 74 became a subsidiary of Kemira $600 $603 $548 $500 c Yo $462 r 6 $aoo $333 p $345 U $300 $ 79 $3 $320 46 $243 $260 34 $221 $ $200 73 —4—cast/dry ton $100 00 01 W0 00 90 01 ql� 0� 0p 00 00 0, 00 00 CP O,' 0`1' 00 Op 00 O6 Ol 00 00 '10 -0.0\000\00'1\00"00oi\000�0 p�'b\00p\000\006\Q0'C\000\009\�O\�'Y\00'L\�4 „p\�0\ ,.y\�'C\�0\O�\0ti0\0ti1\0tiry\ - 'v 1 b �,. n. r4 ti ti M1 ry ti M1 M1 ti ti M1 Multiple Contract Drivers • Consequences of Extended Iron Salt Supply Disruption — Primary/Secondary Treatment Process Impacts — Risk of NPDES Permit Violation — Air Quality Permit Violations due to 1-12S Levels • SCAQMD Fines Related to Permit Non-Compliance - Minimum of $5000/day — Increased Solids and Power Consumption Costs • Solids removal costs would increase due to increased secondary treatment, digestion, and dewatering costs - about $10,000/day • High H2S digester gas cannot be used for powering the Cen-Gen Engines - power would have to be purchased at about $20,000/day Ferric Chloride Purchase RFP Process • Proposals solicited in increments of 1000 dry tons per year up to 6000 dry tons total annual usage • Four qualified suppliers submitted proposals Staff Recommendation • Award contract to four qualified suppliers Total Estimated Vendor Quantity Unit Price Cost Dry Tons/Yr $/Dry Ton $/Yr Kemira 3000 $ 570.76 $ 1,712,280 CWT 1000 $ 537.20 $ 537,200 Pencco 1000 $ 576.31 $ 576,310 Thatcher 1000 $ 610.00 $ 610,000 Basis for Staff Recommendations • Balances supply streams from local vs regional and start-ups vs. established suppliers • Long-term opportunity to establish new supply corridor and to meet all our needs at lowest cost • Opportunity to evaluate performance of three new suppliers • 15% savings compared to FY 11-12 contract Staff believes the above benefits outweigh additional 4% savings for lowest two supplier option Orange County Sanitation District We're here for you.