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HomeMy WebLinkAbout22-49 Resolution No. 22-49, RESOLUTION AUTHORIZING EXECUTION OF A PURCHASE AGREEMENT WITH FONTUS BLUE, INC. FOR TREATMENT OPTIMIZATION SOFTWARE AND TECHNICAL SUPPORT REGARDING WATER TREATMENT PROCESSES BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY QF ELGIN,ILLINOIS,that pursuant to Elgin Municipal Code Section 5.02.020B(9) the City Council hereby finds that an exception to the requirements of the procurement ordinance is necessary and in the best interest of the city; and BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Richard G. Kozal, City Manager, and Kimberly A. Dewis, City Clerk, be and are hereby authorized and directed to execute a Purchase Agreement on behalf of the City of Elgin with Fontus Blue, Inc., for treatment optimization software and technical support regarding water treatment processes, a copy of which is attached hereto and made a part hereof by reference. s/David J. Kaptain David J. Kaptain, Mayor Presented: March 23, 2022 Adopted: March 23, 2022 Omnibus Vote: Yeas: 9 Nays: 0 Attest: s/Kimberly Dewis Kimberly Dewis, City Clerk PURCHASE AGREEMENT THIS AGREEMENT is hereby made and entered into this 23 day of March, 2022, by and between the City of Elgin, Illinois, a municipal corporation (hereinafter referred to as "City") and Fontus Blue, Inc., an Ohio corporation, (hereinafter referred to as"Fontus" or"Seller"). NOW, THEREFORE, for and in consideration of the mutual promises and covenants contained herein, the sufficiency of which is hereby mutually acknowledged, the parties hereto hereby agree as follows: 1. PURCHASE. City shall purchase, and Fontus shall sell the goods and/or services described by Attachment A, attached hereto and made a part hereof. 2. TERMS. This Agreement shall be subject to the terms and conditions contained herein and as provided by Attachment A, attached hereto and made a part hereof. 3. LAW/VENUE. This agreement is subject to and governed by the laws of the State of Illinois. Venue for the resolution of any disputes or the enforcement of any rights arising out of or in connection with this agreement shall be the Circuit Court of Kane County, Illinois. Fontus hereby irrevocably consents to the jurisdiction of the Circuit Court of Kane County, Illinois for the enforcement of any rights, the resolution of any disputes and/or for the purposes of any lawsuit brought pursuant to this agreement or the subject matter hereof; and Fontus agrees that service by first class U.S. mail to 526 S. Main St., 7th Floor, Akron, Ohio 44311 shall constitute effective service. Both parties hereto waive any rights to a jury. 4. NO MODIFICATION. There shall be no modification of this agreement, except in writing and executed with the same formalities as the original. 5. MERGER. This agreement embodies the whole agreement of the parties. There are no promises, terms, conditions or obligations other than those contained herein, and this agreement shall supersede all previous communications, representations or agreements, either verbal, written or implied between the parties hereto. 6. INTEREST. FONTUS hereby waives any and all claims or rights to interest on money claimed to be due pursuant to this agreement, and waives any and all such rights to interest to which it may otherwise be entitled pursuant to law, including, but not limited to, pursuant to the Local Government Prompt Payment Act (50 ILCS 505/1, et seq.), as amended, or the Illinois Interest Act (815 ILCS 205/1, et seq.), as amended. The provisions of this paragraph shall survive any expiration,completion and/or termination of this agreement. 7. SEVERABILITY. The terms of this agreement shall be severable. In the event any of the terms or the provisions of this agreement are deemed to be void or otherwise unenforceable for any reason,the remainder of this agreement shall remain in full force and effect. 8. COMPLIANCE WITH LAW. Notwithstanding any other provision of this agreement, it is expressly agreed and understood that in connection with the performance of this agreement, Fontus shall comply with all applicable federal, state, city and other requirements of law, including, but not limited to, any applicable requirements regarding prevailing wages, minimum wage, workplace safety and legal status of employees. Without limiting the foregoing, Fontus hereby certifies, represents and warrants to the City that all of Fontus's employees and/or agents who will be providing products and/or services with respect to this agreement shall be legally authorized to work in the United States. Fontus shall also, at its expense, secure all permits and licenses, pay all charges and fees, and give all notices necessary and incident to the due and lawful prosecution of the work, and/or the products and/or services to be provided for in this agreement. The City shall have the right to audit any records in the possession or control of Fontus to determine Fontus's compliance with the provisions of this section. In the event the City proceeds with such an audit, Fontus shall make available to the City Fontus's relevant records at no cost to the City. City shall pay any and all costs associated with any such audit. 9. EXECUTION. This agreement may be executed in counterparts, each of which shall be an original and all of which shall constitute one and the same agreement. For the purposes of executing this agreement, any signed copy of this agreement transmitted by fax machine or e- mail shall be treated in all manners and respects as an original document. The signature of any party on a copy of this agreement transmitted by fax machine or e-mail shall be considered for these purposes as an original signature and shall have the same legal effect as an original signature. Any such faxed or e-mailed copy of this agreement shall be considered to have the same binding legal effect as an original document. At the request of either party any fax or e-mail copy of this agreement shall be re-executed by the parties in an original form. No party to this agreement shall raise the use of fax machine or e-mail as a defense to this agreement and shall forever waive such defense. 10. CONFLICT. In the event of any conflict between the terms and provisions of this purchase agreement and Attachment A hereto, the terms and provisions of this purchase agreement shall supersede and control. 11. PAYMENT. City shall pay the total sum of$104,000 over a three-year period as follows: $40,000 for year 2022; $32,000 for year 2023; and $32,000 for year 2024. Said amounts shall be paid within thirty (30) days of delivery or city's receipt of invoice, whichever is later. The aforementioned total sum is inclusive of all freight,shipping and applicable taxes. 12. LIMITATION OF DAMAGES. In no event shall City be liable for any monetary damages in excess of the purchase price contemplated by this agreement. In no event shall City be liable for any consequential, special or punitive damages, or any damages resulting from loss of profit. 13. INDEMNIFICATION. To the fullest extent permitted by law, Fontus agrees to and shall indemnify, defend and hold harmless the City, its officers, employees, boards and commissions from and against any and all claims, suits,judgments, costs, attorney's fees, damages or any and all other relief or liability arising out of or resulting from or through or alleged to arise out of any acts or negligent acts or omissions of Fontus or Fontus's officers, employees, agents or subcontractors in the performance of this agreement, including but not limited to, all goods delivered or services or work performed hereunder. In the event of any action against the City, its officers, employees, agents, boards or commissions covered by the foregoing duty to indemnify, defend and hold harmless, such action shall be defended by legal counsel of the City's choosing. 2 14. LIMITATION OF ACTIONS. The parties hereto further agree that any action by Fontus arising out of this Agreement must be filed within one year of the date the alleged cause of action arose or the same will be time-barred. 15. APPROPRIATION OF FUNDS. The fiscal year of the City is the 12 month period ending December 31. The obligations of the City under any contract for any fiscal year are subject to and contingent upon the appropriation of funds sufficient to discharge the obligations which accrue in that fiscal year and authorization to spend such funds for the purposes of the contract. If, for any fiscal year during the term of this agreement, sufficient funds for the discharge of the City's obligations under the contract are not appropriated and authorized, then the agreement shall terminate as of the last day of the preceding fiscal year, or when such appropriated and authorized funds are exhausted, whichever is later, without liability to the City for damages, penalties or other charges on account of such termination. The person signing this Agreement certifies that s/he has been authorized by the Seller to commit the Seller contractually and has been authorized to execute this Agreement on its behalf. IN WITNESS WHEREOF, the parties have hereto set their hands the day and year first above written. FONTUS BLUE, INC. CIT LGIN Christopher Miller / Print Name Richard G. Kozal,City Manager am:44)A aliA4 Attes Signature CEO City Clerk Title \Legal Dept\Agreement\Fontus Blue-Purchase Agr-Software&Consult Support Services-2-18-22.docx 3 ATTACHMENT A Fontus Blue, Inc. 20 W Maple Dr Seville,OH 44273 US 330-697-2741 chris@fontusblue.com Estimate ADDRESS ESTIMATE 1001 Eric Weiss DATE 03/03/2022 City of Elgin EXPIRATION DATE 03/31/2022 150 Dexter Court Elgin,IL 60120-5555 United States SERVICE DESCRIPTION QTY RATE AMOUNT Decision Blue Pro One- 2022 One-Time Configuration 1 8,000.00 8,000.00 Time Configuration Software Module Decision Blue Pro 2022 Annual Fee 1 32,000.00 32,000.00 Managed Services Decision Blue Pro 2023 Annual Fee 1 32,000.00 32,000.00 Managed Services Decision Blue Pro 2024 Annual Fee 1 32,000.00 32,000.00 Managed Services Proposal details also attached. 1 0 IAL $104,000.00 Accepted By Accepted Date Page 1of1 January 27, 2022 Eric Weiss, P.E. Water Director 150 Dexter Court Elgin, IL 60120 Re: 2022-2024 Decision Blue® Service Including Corrosion and Chemical Dosing Support Dear Eric, The Fontus Blue team has enjoyed working with your team in 2021 on Elgin water-focused opportunities and challenges while developing baseline modules in Decision Blue® to monitor both treated water quality (e.g. corrosion) and cost (see Figures 1-3). The most recent lead and copper results from June 2021 show that the collaboration is working with a 14% reduction in the lead (Pb90%) value compared to 2020. We are pleased that you are considering using our services in 2022-2024 to support your operations, compliance, and chemical dosing to maintain and improve outcomes at lower cost. Attached is a Statement of Work ("SOW) for the City of Elgin to further monitor treatment process operations to aid in cost-effective compliance and enhanced water quality. There will also be a real- time data connection component to this effort (coordinated with your preferred integrator) that will enhance operations and provide staff the ability to monitor the water plant off-site. In summary, this SOW is a three (3) year project (2022-2024) to deploy new support modules and tools within Decision Blue that support the priorities of the City of Elgin, reduce operational expenses, and support staff to provide exceptional water to Elgin residents. Fontus Blue will support these issues through a combination of technical expertise consulting and its decision support software service (Decision Blue®) at an approximate budget of-2% of the 2021 chemical budget. Given the proposed duration of the project and long-term commitment by the City of Elgin, Fontus Blue is waiving all customization costs associated with its software and provided a discount on its annual licensing fee during this period. Sincerely, 6/4,i4;aeptuA, kti114,1. Christopher M. Miller, Ph.D., P.E. President and CEO fontusblue Statement of Work The work for the proposed period is summarized below. 1. Decision Blue® development and implementation at the water plant including the following: • Data input configuration, • Module configuration to support turbidity, disinfection, corrosion control, and cost modules, • Decision Blue® Log for insights, actions, and outcomes, • Decision Blue Reports, • Web-access for specified users, • Customized Virtual Jar1' simulation and optimization chemical dosing support tool. • Secure, real-time data connection for both facilities 2. Decision Blue® license fees and Fontus Blue retainer services for calendar years 2022-2024 including: • All software and all software upgrades • Web-based training • Web-based support including Virtual Jar guided simulations and data-Decision Blue log review with operations staff, • Web-access for all specified users • 24/7 unlimited access to dedicated Fontus Blue experts for technical expertise (when requested) on any water-related project, • Reviewing the rationale and integration of proposed capital project improvements (when requested) at the water utility, and • Enhance operations for cost savings. Schedule The proposed timeline for this project is 2022 through the end of calendar year 2024. fontusblue 2 Budget A cost summary is provided below: Statement of Work (SOW) Item Cost (US$)' 1. Decision Blue® software development and customization for both water plants (Airlite and Riverside): • Module customization -$19,000 (waived) • Virtual JarTM configuration for treatment train and multiple water quality objectives • Secure, real-time data connection (coordinated with your preferred $8,000 (one-time) integrator and our preferred data vendor) 2. Decision Blue® software service for 2022-2024 for two water treatment $96,000 (8% discount) plants including: • All software and all software upgrades • Web-based training and support • Web-access for specified users Total = $104,000 The data connection fee (Item #1 in SOW) will be billed upon completion of the real-time data connection. The Decision Blue® software service fees (Item #2 in SOW) will be billed on an annual basis. A budget breakdown by year is summarized below: 2022: $40,000 (Includes real-time data connection) 2023: $32,000 (Decision Blue services for two WTPs) 2024: $32,000 (Decision Blue services for two WTPs) To accept this quotation, sign here and return: Date: Representative City of Elgin, Illinois c43 fontusblue decision ELGIN Elgin Adllte W@(Manager-Jeff Luker 1.116471 931-61591 DWSID 11.0894380174 N Ndlte St Elgin.IL-60123 Module Summary Cost Corrosion Sentry Satellite 40 Orni"117 Figure 1. Home screen shot for Airlite WTP from Decision Blue® software provided as part of proposed service. 01.) fontusblue 4 Corrosion Sentry Key►Pxtananoe adlcators aa4sl 0 Simulated CCPP(mglL) Lead Solubility(ppb) Copper Solubility(ppb) 6.6 132 , 21 aiiiingag Details Tap pH 8.85 S.U. Tap Alkalinity 67 mg/I. Temperature 24.9'C Tap Calcium Hardness 79 mg!L CaCo3 Simulated DIC 15.39 mp/L CCPP U Reset Graph Controls Lead Solubility a. Reset Graph Coevals �- Slrr.la:ea Cc" - MnIng Average lag-Day)) I lead 8alubls r • Nctlrrp M.rage 18-Day)) 10 140 120 J 100 U 4 60 I 40 2 20 0 0 611411 6.22121 6,29,21 7'5'21 7.12 21 6�14 21 6 22'21 6.'29'21 7'5 21 7 1211 08:26 PN 08:20 PM 05:28 AM 08:22 PM 11:45 AM 08:26 PM 08:10 PM 05.28 AM 0822 PM 11:45 AM Date Dame •frar"�rYI "wrrsnY•0I•1•1.l1•114••••• 1rA4/04/!• °lt##IWI{IIM1111If1AAItII1pHI111U11tM11MIND .LD ___ 1.i i I • I: m Revered by arl aaepart Figure 2. Corrosion control monitor (i.e. Corrosion Sentry1M) Riverside WTP screen shot from Decision Blue® software provided as part of proposed service. fontusblue 5 decisionHCrre isle- Module:,- o:l.- lay A3lla Strains,. '_0,111: 1e.p Cost Module ooialmr. - Key vuknaance Indlators(04 0 Total Cost ISIMG) 331.06 Cost Deals Chemical Name Quantity Used Cost ISMGI PAC 116 Pound OM Lime 6.194 Pound OM 11918 Soda ASP 31M Pound IMI 9677 Alum 532 Pound 1101 co] 2000 Pound OM Phosphate 13 Pound 1118 Filter Aid Polymer 0Pound 1101 FhullPo 55 Puod(lb) Chlorin N0 Pound list 1016 Ammonla I60 Pound 601 Chemical Cost Summary Total Chemical Cost ms01 Gra,r cont,r.. Ind.vidual Chemical Costs 009-I u.in C951.im (an♦.m) morn . Po000 mn +Ammar. a —COO Any 60 156.oy 1 �— 4am. _PAC ...c IM..,,.. _,....o 1 600 I. Soo eo 1116 6d11G I.. Il .00 676.931MG e. - Ito- "N...., Average Chenleal Cast \./ \4, e61.5110 --6,,.66IMG zoo 6 610.131MG "66.31MG lop w / 39 22rM(. 20 6t,6.ONAG/ l ,6IMG 0.---....a.�W._„..1a . . $26.161M0/u•66Mf a 22 20 I11 10 0,21'20 a.22,20 91510 911110 It 00 VA 1300 AN 1200 AM 1100 Ala 1100 AM 1100161 1100 AM Date 0tle Figure 3. Cost monitor example screen shot from Decision Blue® software provided as part of proposed service (and started in July 2021 at both Elgin WTPs). c fontusblue 6 Relevant Decision Blue°User References 1. Akron, OH - Conventional surface water (reservoir) treatment plant with daily flow of 32-35 MGD and multiple treatment challenges including elevated source water organic matter concentrations, algal activity, and disinfection byproducts. Decision Blue® web-based user starting in 2017 and active Virtual Jarr" chemical dosing user since late 2019. Greater than 24% chemical savings documented in 2020 versus 2019 and the lowest lead results in the history of the plant. Contact Person: Jeff Bronowski, P.E. Water Supply Bureau Manager (330) 678-0077 x439 Email:jbronowski@akronohio.gov 2. Poland, OH - Conventional surface water(Evans Lake) treatment plant with average daily flow of - 4 MGD and persistent harmful algal bloom (HAB) risk including elevated toxin concentrations. Completed their Cyanotoxin General Plan in 2018 and Decision Blue@ web-based customer since 2018 and active user of the HAB monitor and other water quality modules including hardness and turbidity. Greater than 10% chemical savings documented in 2019 and significantly reduced DBPs in 2020 and 2021. Contact Person: Joe Tovarnak Water Superintendent Office: 330-755-4822 Email:jtovarnak@aquaamerica.com * fontusblue 7