TO: Mayor and City Council
FROM: James V. Capparelli, City Manager
SUBJECT:
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Emergency Purchase of Sodium Permanganate from Hawkins Water Treatment Group in an amount not to exceed $100,620.00
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BACKGROUND:
Sodium Permanganate solution is used in the production of Hydrous Manganese Oxide, a key component in the radium removal process, at the City’s water treatment facilities. The chemicals must meet the requirements of NSF Standard 60 - Drinking Water Treatment Chemicals. The Public Service Committee reviewed this matter at the April 3, 2023 meeting and recommended for approval by full Council.
CONCLUSION:
On January 3, 2023, the Mayor and City Council awarded a contract in the amount of $401,011.00 to Carus Corporation for the purchase of Sodium Permanganate. On January 12, 2023, the Carus Corporation manufacturing plant located in LaSalle, Illinois experienced a catastrophic fire that caused the production of sodium permanganate to halt. Initially Carus Corporation estimated the outage would last a few weeks but soon after they sent force majeure letters to all customers retracting the estimated return to production date. Carus Corporation has since projected a date in May, but it may be longer before the availability of product returns to normal. Since sodium permanganate is a critical chemical needed to treat the City’s drinking water, City staff concluded an alternate source of product needed to be found.
City staff contacted multiple vendors in an effort to purchase sodium permanganate but all vendors with the exception of Hawkins Water Treatment Group declined to sell the City chemical due to the increased demand in the market created by the fire at the Carus Corporation facility. Hawkins Water Treatment Group has agreed to source chemical for the City of Joliet from alternate manufacturers and certify it for use in drinking water. It is estimated 6,500 gallons of chemical will be needed until Carus Corporation can resume production. Hawkins Water Treatment Group has proposed a price of $15.48 per gallon not to exceed $100,620.00.
Section 2-438 of the City of Joliet Code of Ordinances states that purchases over twenty-five thousand dollars ($25,000.00) may be awarded without written specifications under certain circumstances. Two (2) of these circumstances apply:
(a) Purchases where an emergency immediately affects the public health, safety or welfare, if authorized by the City Manager or his designee;
(b) Purchases when authorized by a concurring vote of two-thirds (2/3) of the Mayor and City Council;
Funds will be charged to the Water / Sewer Operating Fund / Water Production-Chemicals (Org 50080011, Object 536108, $100,620.00).
RECOMMENDATION:
recommendation
Based on the above, it is recommended that the Mayor and City Council authorize the award for the Emergency Purchase of Sodium Permanganate contract, in the amount not to exceed $100,620.00, on behalf of Hawkins Water Treatment Group.
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