REPORT TO THE CITY COUNCIL FROM: PAUL AMICO, PE, Director Department of Public Utilities BY: CORY ASHER, Assistant Director Department of Public Utilities - Wastewater Management Division KRISTINA MATTHEWS, Program Manager Department of Public Utilities - Wastewater Management Division SUBJECT ..Title Actions pertaining to a Requirements Contract with Kemira Water Solutions, Inc., a Delaware corporation, for the purchase of ferric chloride (Bid File 12600814) (Council District 3): 1. Approve the award of a Requirements Contract with Kemira Water Solutions, Inc., a Delaware corporation, for a three-year term with two optional single-year extensions for the purchase of ferric chloride at an annual cost of $1,874,361.71 plus annual Producer Price Index increases, with a total not-to-exceed amount of $9,951,240.88 for the entire term, including optional extensions; 2. Authorize the Purchasing Manager, or designee, to execute the Requirements Contract with Kemira Water Solutions, Inc., on behalf of the City of Fresno. ..Body RECOMMENDATION Staff recommends Council award a Requirements Contract (Contract) with Kemira Water Solutions, Inc., a Delaware corporation (Kemira) for three years with two optional one-year extensions, at an amount of $1,874,361.71 plus annual Producer Price Index (PPI) increases, for a total not-to-exceed amount of $9,951,240.88, and authorize the Purchasing Manager or designee to execute a Contract with Kemira Water Solutions, Inc., on behalf of the City of Fresno. EXECUTIVE SUMMARY The Department of Public Utilities (DPU) uses ferric chloride at the Fresno-Clovis Regional Wastewater Reclamation Facility (RWRF) to control hydrogen sulfide concentrations in the liquid waste stream, thereby reducing hydrogen sulfide emissions in the digester gas. Hydrogen sulfide emissions are regulated under Environmental Protection Agency (EPA) rules administered by the San Joaquin Valley Air Pollution Control District. BACKGROUND The RWRF currently treats approximately 56 million gallons of wastewater per day from Fresno, Clovis, and some unincorporated areas of Fresno County. Wastewater typically travels 8-10 hours through the collection system before reaching the RWRF, during which time it becomes septic. In septic conditions, naturally occurring bacteria convert the sulfate present in the wastewater into dissolved sulfides. During treatment, dissolved sulfides can release hydrogen sulfide, a toxic, corrosive, and odorous gas. Ferric chloride is added at the start of the liquid treatment process, where it binds with dissolved sulfides, significantly reducing hydrogen sulfide concentrations in the digester gas. A Request for Proposal (RFP), No. 12600814, was prepared for this Project. A Notice Inviting Bids was published on December 18, 2025, posted on Planet Bids, and advertised in the Business Journal. Four proposals were evaluated by the Purchasing Division (Purchasing), and responsive bidders were sent to Staff for further evaluation. Total bid proposals ranged in price from $5,623,085.13 to $10,235,369.43 for the initial three-year term. Kemira was determined to be the lowest responsive and responsible bidder for ferric. The Purchasing Division has approved this Contract and recommends that Council approve as to form. The City Attorney has reviewed and approved as to form. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, the award of this contract does not qualify as a "project" as defined by CEQA. LOCAL PREFERENCE Local preference is not applicable as none of the proposals received were local as defined by the Fresno Municipal Code. FISCAL IMPACT There is no impact on the General Fund. This Project is located in Council District 3. Appropriations for this Project are included in the Fiscal Year 2027 Wastewater Management Division's Operations and Maintenance Budget within the Sewer Enterprise Fund (4500-4501), and future purchases will be included in future fiscal year budgets. This is a three-year Contract with two additional one-year options. Attachments: Sample Requirements Contract Bid Evaluation and Fiscal Impact Statement Vicinity Map Location Map