Methanol is used at TMWRF in the denitrification reactor, the final step in the removal of nitrogen from the wastewater.  We currently have a contract with Thatcher Chemical to supply methanol, however, Thatcher’s plant is located in Houston Texas.  The impact to the facility from Hurricane Harvey and the subsequent flooding is not known at this time.  While the vendor has assured staff that delivery of methanol will continue, the possibility of interruptions in this delivery cannot be entirely dismissed. This agenda item is seeking authorization to purchase methanol from alternative vendors if necessary at market prices.  TMWRF is seeking advance authorization as the purchases will exceed $50,000. If delivery interruptions cause us to seek alternative suppliers, it is staff’s intent to return to Thatcher Chemical when supply again becomes available.

Due to the uncertainty of the impact to our current supplier it is not possible to say at this time if alternative vendors will be needed.  If that need manifests, staff will need to secure an alternative supply on a shorter notice than is typical.  TMWRF staff will work with the purchasing department to secure the lowest possible price for available supply.  This agenda item is designed to authorize purchases from one or more vendors other than our contracted supplier that will not exceed $250,000 cumulatively for the balance of the fiscal year.

1. City Council could approve the proposed purchase as outlined by staff.
2. City Council could reject the proposed purchase and provide direction to the City Manager.

I move to approve the purchase of methanol from multiple vendors in an amount not to exceed $250,000 during FY18.