HomeMy WebLinkAboutFYI Chemical Costs Goal Adjustment 042822 c,',0 cot;XI/-
CLAY COUNTY UTILITY AUTHORITY
• MEMORANDUM
TO: Jeremy Johnston,PE,MBA,Executive Director
FROM: Teri Shoemaker,PE, Chief Operations Officer
DATE: April 28,2022
RE: Proposed Adjustment in Goal for Water and Wastewater Treatment Costs
Each month,we report the water treatment costs and water reclamation costs($/kgal)to the Board
of Supervisors.Based on the recent chemical cost increases,I propose we adjust the goals outlined
in CCUA's Annual Report published in August 2021. The goal is currently$0.80/kgal for water
treatment and$3.35/kgal for wastewater treatment, as shown on the following graphs:
Water Treatment Cost per 1 kgal.by Fiscal Years
R
O S1.20
.2
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LIB
50.80
J}7
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'a0.60
50.30
>0.20
$0.00
0¢. NOY. De, ler. gee. MB, GO/. Mey Sep.
Month
1 19-20 1120-21 eem$/4e1 21-22 • .$/kgel FY 2:22 Gael
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CLAY COUNTY UTILITY AUTHORITY
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Water Reclamation Cost per 1 kgal.by Fiscal Years
54.50
5400
$3.50
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8
s:.50
s4.00
saw
Saw
act. ram Oec M. F40. MV. 4p*. M!Y 1V1. Al A116 SeP.
Month
19-zo 20-21 %AV 11-22 . s/tq rru-ueam
Following is a summary of the chemicals we use in the Water and Wastewater Departments,along
with total spent in Fiscal Year 2021 and the price increases:
Wastewater Dept Chemicals Overall percent increase 41%
Contract Expire Company Chemical Unit Total$FY21 Old Price New Price %Increase Increase New Total
20/21-A5 3/8/2023 Thatcher* Sodium Bisulfite gal $ 285,007.22 $1.37 $1.85 35.04 $ 99,856.54 $ 384,863.76
20/21-A5 3/8/2023 Odyssey Sodium Hypochlorite gal $ 328,078.90 $0.57 $0.78 36.68 $120,353.46 $ 448,432.36
19/20-A15 11/8/2022 Hawkins NaOCL NonTanker gal $ 14,737.50 $ 1.25 $ 1.38 10.40 $ 1,532.70 $ 16,270.20
19/20-A15 11/8/2022 Thatcher** Ferric Sulfate gal $ 0.94 $ 1.37 45.32 $ - $ -
19/20-A15 11/8/2022 Brenntag Calcium Hypochlorite/HTH pallet $ 16,430.68 $1,792.00 $2,504.00 39.73 $ 6,528.26 $ 22,958.94
19/20-A15 11/8/2022 Polydyne Polymer(Sludge Treatment) lb $ 428,175.00 $0.97 $1.45 49.48 $211,880.41 $ 640,055.41
Total $ 1,072,429.30 _ $440,151.38 $ 1,512,580.68
*Includes Southern Ionics Total$FY in line item.
**BS&A doesn't report chemical in summary so Thatcher is all included together in line item 1.
Water Dept Chemicals Overall percent increase 33%
Contract Expire Company Chemical Unit Total$FY21 Old Price New Price %Increase Increase New Total
20/21-A5 3/8/2023 Odyssey Sodium Hypochlorite gal $ 95,704.07 $0.57 $0.78 36.68 $ 35,108.37 $ 130,812.44
19/20-A15 11/8/2022 Hawkins NaOCLNonTanker gal $ 14,737.50 $ 1.25 $ 1.38 10.40 $ 1,532.70 $ 16,270.20
Total $ 110,441.57 $ 36,641.07 $ 147,082.64
‘,0 cot;XI
` CLAY COUNTY UTILITY AUTHORITY
V71, MEMORANDUM
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The chemicals have increased at various rates, so I used the total spent in Fiscal Year 2021 to
calculate an increase for each chemical based on the new prices. The total increase was then used
with total chemical costs to calculate an overall percent increase. It should be noted that Polydyne
Polymer is included in the budget under"Sludge Treatment"not"Chemicals".
Based on the overall percent increase in each Department,I proposed the following adjustment to
our goals:
Average% Total Budget+ %Increase Old New
Chemical Chemical Cost Chemical Chemical of Total $/kgal $/kgal
FY 22 Budgets Total Budget Budget Increase Increase Increase Budget Goal Goal
Wastewater* $9,087,182.70 $ 1,208,478.00 41% $ 495,475.98 $ 9,582,658.68 5% 3.35 3.48
Water $4,347,955.20 $ 185,000.00 33% $ 61,050.00 $ 4,409,005.20 1% 0.80 0.81
*Includes Sludge Treatment(Polymer)
The new goal for water treatment would be$0.81/legal, and the new goal for wastewater treatment
would be $3.48/kgal.
cc: Phil Hendrix,Wastewater Superintendent
Ross Bland,Water Superintendent