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HomeMy WebLinkAbout26-28725 - City Council - OrdinanceOrdinance No. 26-28725 __________ Page 1 of 1 ORDINANCE 26-28725 INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE WATER AND SEWER CAPITAL PROJECTS FUND IN THE AMOUNT OF $2,115,000.00, TRANSFERRED FROM AVAILABLE PAYGO FUNDS WITHIN THE WATER AND SEWER FUND, FOR THE PURPOSE OF FUNDING THE WATER & SEWER OUTLAY PROGRAMMABLE PROJECT (CITY PROJECT NO. P00087) TO FUND THE PURCHASE OF POWER SUPPLY UNIT(S), MASTER OZONE CONTROL PANEL(S), SERVICES AND PARTS FOR OZONE GENERATORS WITHIN THE HOLLY WATER TREATMENT PLANT REPLACEMENT 3 PSU & CONTROLS PROJECT (CITY PROJECT NO. 107119); PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING AN EFFECTIVE DATE. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS THAT: SECTION 1. In addition to those amounts allocated to the various City departments for Fiscal Year 2025-2026 in the Budget of the City Manager, there shall also by increasing estimated receipts and appropriations in the Water and Sewer Capital Projects Fund in the amount of $2,115,000.00, transferred from available PayGo funds within the Water and Sewer Fund, for the purpose of funding the Water & Sewer Outlay programmable project (City Project No. P00087) to fund the purchase of power supply unit(s), master ozone control panel(s), services and parts for ozone generators within the Holly Water Treatment Plant Replacement 3 PSU & Controls project (City Project No. 107119). SECTION 2. Should any portion, section or part of a section of this ordinance be declared invalid, inoperative or void for any reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining provisions shall be and remain in full force and effect. SECTION 3. This ordinance shall be cumulative of Ordinance 27979-09-2025 and all other ordinances and appropriations amending the same except in those instances where the provisions of this ordinance are in direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed. SECTION 4. This ordinance shall take effect upon adoption. APPROVED AS TO FORM AND LEGALITY: ____________________________________ _____________________________ Amarna Muhammad Jannette S. Goodall Assistant City Attorney City Secretary ADOPTED: August 25, 2026 EFFECTIVE: August 25, 2026 Page 1 of 6 CITY OF FORT WORTH CHAPTER 252 EXEMPTION FORM Instructions:Fill out the entire form with detailed information. Once you have completed this form, provide it to the Purchasing attorneys for review. The attorneys will review the information you have provided to determine whether an exemption to Chapter 252’s bidding requirements is defensible. Failure to provide sufficient information may result in follow up questions and cause a delay in the attorney’s determination. Section 1: General Information Requesting Department:Water Name of Contract Manager:Shatabya Easley Departmental Attorney:Doug Black Item or Service sought:Ozonia ozone generators and power supply units, components, and services for the Holly Water Treatment Plant Goods: Service: Anticipated Amount:$1,500,000.00 Vendor: Veolia Water Technologies Treatment Solutions/USA Inc. Current/Prior Agreement for item/service: Yes No CSC or Purchase Order #: 58527 Amount:$2,237,000.00 Projected M&C Date:22-0890 How will this item or service be used? The power supply units will replace the current power supply units that are needed on the ozone generators. The unit(s) will produce ozone to meet the demand of the ozone disinfection system at the Holly Water Treatment Plant. Has your department started a requisition or otherwise contacted the Purchasing Division related to obtaining this good/service? Yes No Page 2 of 6 If yes, please provide requisition number or brief explanation of contact with Purchasing Division: [DETAILED DESCRIPTION] Section 2: Claimed Exemption and Justification (Other than sole source) NOTE: For sole-source exemption requests, complete Section 3. Please indicate the non-sole-source exemption you believe applies to the purchase and provide information to support its applicability. Please refer to the Exemption Primer (starting on page 5) for detailed information about common exemptions: A procurement necessary to preserve or protect the public health or safety of the City of Fort Worth’s residents; A procurement necessary because of unforeseen damage to public machinery, equipment, or other property; A procurement for personal, professional, or planning services; A procurement for work that is performed and paid for by the day as the work progresses; A purchase of land or a right-of-way; Paving drainage, street widening, and other public improvements, or related matters, if at least one-third of the cost is to be paid by or through special assessments levied on property that will benefit from the improvements; A public improvement project, already in progress, authorized by the voters of the municipality, for which there is a deficiency of funds for completing the project in accordance with the plans and purposes authorized by the voters; A payment under a contract by which a developer participates in the construction of a public improvement as provided by Subchapter C, Chapter 212; Personal property sold: at an auction by a state licensed auctioneer; at a going out of business sale held in compliance with Subchapter F, Chapter 17, Business & Commerce Code; by a political subdivision of this state, a state agency of this state, or an entity of the federal government; or under an interlocal contract for cooperative purchasing administered by a regional planning commission established under Chapter 391; Page 3 of 6 Services performed by blind or severely disabled persons; Goods purchased by a municipality for subsequent retail sale by the municipality; Electricity; or Advertising, other than legal notices. Please provide details and facts to explain why you believe the exemption applies to the purchase. You may also attach documentation to this form. [INSERT DETAILED EXPLANATION AS TO HOW/WHY CLAIMED EXCEPTION APPLIES TO THIS PURCHASE] Section 3: Claimed Sole-Source Exemption and Justification NOTE: For all non-sole-source exemption requests, complete Section 2. Please indicate the sole-source exemption you believe applies to the purchase and provide information to support its applicability. Please refer to the Exemption Primer (starting on page 5) for detailed information about common exemptions: items that are available from only one source because of patents, copyrights, secret processes, or natural monopolies; films, manuscripts, or books; gas, water, and other utility services; captive replacement parts or components for equipment; books, papers, and other library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and management services provided by a nonprofit organization to a municipal museum, park, zoo, or other facility to which the organization has provided significant financial or other benefits; How did you determine that the item or service is only available from one source? The power supply unit(s) are components of the Ozonia ozone generator(s) which is also sole sourced through the Vendor. Attach screenshots and provide an explanation of any independent research you conducted, through internet searches, searching cooperatives, or discussions with others knowledgeable on the subject matter that corroborate that the item is available only from a single source. See sole source letter. Did you attach a sole source justification letter? Yes No Describe the uniqueness of the item or service (e.g. compatibility or patent issues, etc.). The power supply unit(s) are only compatible with the Ozonia generators at the Holly Water Page 4 of 6 Treatment Plan. The power supply units are proprietary, manufactured and serviced only by the Vendor. Section 4: Attorney Determination With the facts provided by the department, is the use of the claimed exemption defensible if the City were to be challenged on this purchase? Yes No. Was there anything attached to this form that was relied on in making this determination? Yes No. If yes, please explain:Sole Source Letter Was there anything not included on this form or attached hereto that was relied on in making this determination? Yes No. If yes, please explain:[EXPLAIN OUTSIDE SOURCE OF INFORMATION] Approved By: Date: 4/7/2026 Amarna Muhammad / Jordan Alvarez Assistant City Attorney Page 5 of 6 EXEMPTION FORM PRIMER Below are explanations and examples of common exemptions that could apply to City purchases. If you have questions about the information provided or need additional information, please contact your department’s assigned attorney or the appropriate purchasing attorney. PUBLIC HEALTH & SAFETY -A procurement necessary to preserve or protect the public health or safety of the municipality’s residents; Examples of activities that have been found to fall within this exception include ambulance services; solid waste collection and disposal; and first-responder safety equipment such as breathing apparatus for firefighters and bullet-proof vests for police officers. UNFORESEEN DAMAGES -A procurement necessary because of unforeseen damage to public machinery, equipment, or other property; Examples of this type of procurement would include repairing or replacing roofs and windows damaged by hail or a tornado. But parts and services for routine maintenance or replacement of old, worn out roofs or windows would not meet this exception. PERSONAL, PROFESSIONAL, OR PLANNING SERVICES Personal services are ones that are unique to the individual providing them. Therefore, personal services contract cannot generally be subcontracted or assigned. Professional services are not defined under Chapter 252, so there is no precise definition to follow. While there is no universal definition of this term, “several cases suggest that [these types of services are] ‘predominately mental or intellectual, rather than physical or manual.’” Tex. Atty Gen Op. JM-940 (1988) (quoting Maryland Casualty Co. v. Cray Water Co., 160 S.W. 2d 102 (Tex. Civ. App.—Eastland 1942, no writ). The Texas Attorney General has also opined that “professional services” no longer includes only the services of lawyers, physicians, or theologians, but also those members of disciplines requiring special knowledge or attainment and a high order of learning, skill, and intelligence. Id. Facts needed to support a professional service exemption include the specialized requirements of that profession and the mental and intellectual skill required by the person while performing the service. Purchases of goods are not professional services. SOLE SOURCE – A procurement for items available only from one source This exemption is commonly referred to as the sole source exemption. The fact that the vendor in question has the best price or can meet our timing needs does not make a purchase of a good or service available from only one source. A sole source does not exist solely on the basis of personal or departmental preference or a desire to keep all units the same brand or make. The information needed to support this exemption is documentation showing that Page 6 of 6 no other provider can provide the service or category of good except for the vendor you are proposing. Some examples of sole source purchases include (i) service agreements when only one vendor is authorized to work on the equipment by the manufacturer and allowing another vendor would void the warranty and (ii) purchase of a good that is copyrighted or trademarked and only provided by one vendor. Q VEOLIA Replacement Power Supply Units & System Controls Proposal No.: 651414 Revision: 003 City of Fort Worth Holly WTP May 29, 2026 Contact information: Veolia Water Tech Prepared By: Vito Ruvo Tel: +1 (514) 395-4731 Email: vito.ruvo(�veolia.com Regional Sales Manager: John Hughes Tel: +1 (817) 262-9500 Email: iohn.hughes1 aveolia.com Local Sales Representative Hartwell Environment Corporation Robert Russell Tel.: +1(817)233-9155 Email: brussell(c�hartwellenv.com VEOLIA WATER TECHNOLOGIES TREATMENT SOLUTIONS USA INC. 600 Willow Tree Road LEONIA, NJ 07605 - USA Q VEOLIA May 29, 2026 Tim Allen City of Fort Worth Holly WTP 1500 11th Ave. Fort Worth, TX 76102-4349, USA Subject: Replacement Power Supply Units & System Controls City of Fort Worth Holly WTP Proposal No. 651414 Rev. 003 To whom it may concern Veolia Water Technologies Treatment Solutions USA, Inc. (formerly known as VEOLIA Treatment Solutions, Inc, hereinafter referred to as "Veolia") is pleased to provide our proposal for the work to be accomplished at the Holly WTP, in Forth Worth, TX. At a high level, this proposal will offer to replace three Power Supply Units in their entirety. Veolia shall provide the equipment and services as detailed below. If there are any questions or if additional information is required, please do not hesitate to contact us. We look forward to working with you on this project. Very truly yours, Veolia Water Tech Vito Ruvo Technical Sales Lead — Municipal Ozone File: 651414PROP260413-003.docx Page i Q VEOLIA Proposal and Contract To: Tim Allen City of Fort Worth Holly WTP 1500 11th Ave. Fort Worth, TX 76102-4349, USA (Hereinafter referred to as "Purchaser") Proposal No.: 651414 Rev. 003 Date: May 29, 2026 For: Replacement Power Supply Units & System Controls City of Fort Worth Holly WTP Veolia Water Technologies Treatment Solutions USA, Inc (hereinafter referred to as "Veolia") offers to furnish the following described materials and equipment ("Products") and/or services at the prices ("Purchase Price") stated herein and in accordance with the Conditions of Sale and other provisions contained or referenced herein. This proposal shall remain in effect unless extended in writing by Veolia. The Purchase Price is based upon only the Conditions of Sale and other provisions specifically contained or referenced herein. Purchaser's acceptance of this Purchase Price, whether by issuance of a purchase order or otherwise, or acceptance of delivery of the Products and/or services furnished hereunder, shall be considered acceptance by the Purchaser of all the Conditions of Sale and other provisions contained or referenced herein, notwithstanding any statement in Purchaser's acceptance or order to the contrary. Veolia hereby objects to and rejects any proposal by Purchaser to modify, amend, limit, add to or delete any of the Conditions of Sale or other provisions contained or referenced herein unless expressly accepted in writing by Veolia. This Proposal and any resulting contract shall be referred to hereinafter as "this Contract". File: 651414PROP260413-003.docx Page ii Q VEOLIA TABLE OF CONTENTS 1 REFERENCE DOCUMENTS.............................................................................................................................1 1.1 RECEIVED...................................................................................................................................................1 1.2 APPLICABLE................................................................................................................................................1 1.3 SPECIFICATION REVIEW...............................................................................................................................1 1.4 ADDENDUMS...............................................................................................................................................1 1.5 OTHER........................................................................................................................................................1 2 SUPPORT DOCUMENTS.................................................................................................................................2 ABBREVIATIONS......................................................................................................................................................3 3 SCOPE OF SUPPLY - HIGH LEVEL...............................................................................................................4 4 SCOPE OF SUPPLY — DETAILED...................................................................................................................5 4.1 ENGINEERING..............................................................................................................................................5 4.1.1 Team..................................................................................................................................................... 5 4.1.2 Standard Service.................................................................................................................................. 5 4.1.3 Specified Service.................................................................................................................................. 5 4.2 ENGINEERING COORDINATION (MEETINGS AND WORKSHOPS).......................................................................5 4.2.1 Pre -Submittal & Kick-off Meeting.......................................................................................................... 6 4.2.2 Pre -Installation Coordination Workshop............................................................................................... 6 4.3 OZONE GENERATION SYSTEM......................................................................................................................6 4.3.1 General................................................................................................................................................. 6 4.3.2 Scope of Supply.................................................................................................................................... 6 4.3.3 Skidded & Pre -Assembled Equipment..................................................................................................7 4.3.4 Loose Equipment.................................................................................................................................. 8 4.4 OZONE CONTROL SYSTEM...........................................................................................................................9 4.4.1 General................................................................................................................................................. 9 4.4.2 Master Ozone Control Panel — MOCP.................................................................................................. 9 4.4.3 North Ozone RIO Panel - NH-LCP-C-99.............................................................................................. 9 4.4.4 South Ozone RIO Panel - SH-LCP-C-100..........................................................................................10 4.4.5 Notable Features................................................................................................................................10 4.5 FACTORY TESTING....................................................................................................................................1 0 4.5.1 Location...............................................................................................................................................10 4.5.2 Unwitnessed Factory Testing.............................................................................................................11 4.5.3 Witnessed Factory Testing.................................................................................................................11 4.6 FIELD SERVICES (MEETINGS, INSPECTIONS, START-UP, TRAINING)..............................................................11 4.6.1 Installation Assistance........................................................................................................................12 4.6.2 Pre -Start -Up Ozone Generator Modification.......................................................................................12 4.6.3 Inspection & Functional Testing..........................................................................................................12 4.6.4 Production Test...................................................................................................................................13 5 WARRANTY....................................................................................................................................................14 6 CLARIFICATIONS...........................................................................................................................................15 7 DEVIATIONS...................................................................................................................................................16 8 SCHEDULE / TIMEFRAME.............................................................................................................................17 9 EXCLUSIONS TO VEOLIA SCOPE OF SUPPLY..........................................................................................18 9.1 WITNESSED FACTORY TESTING..................................................................................................................18 9.2 CONTROL PANEL MODIFICATION.................................................................................................................18 9.3 SCADA/DCS DEVELOPMENT....................................................................................................................18 9.4 GENERALIZED WORK.................................................................................................................................18 10 GENERAL........................................................................................................................................................19 10.1 SHOP TESTING OF EQUIPMENT...................................................................................................................19 10.2 DESIGN.....................................................................................................................................................19 10.3 SCOPE -MATERIAL ....................................................................................................................................19 File: 651414PROP260413-003.docx Page iii Q VEOLIA 10.4 SCOPE - SERVICES 19 11 CONDITIONS OF FIELD SERVICE................................................................................................................20 12 GENERAL TERMS AND CONDITIONS OF SALE - SALE OF CAPITAL EQUIPMENT..............................21 13 SELLING PRICE.............................................................................................................................................26 File: 651414PROP260413-003.docx Page iv Q VEOLIA 1 REFERENCE DOCUMENTS 1.1 Received • None 1.2 Applicable • N/A 1.3 Specification Review • N/A 1.4 Addendums • N/A 1.5 Other • Email — Tim Allen — Dated March 11th 2025 - PSU retrofit and/or replacement • Email — Tim Allen — Dated April 13th, 2026 — Change in PLC and Control System Replacement • MoM — Vito Ruvo — Dated April 23rd, 2026 — Meeting to discuss details of Control System Replacament File: 651414PROP260413-003.docx Page 1 of 27 Q VEOLIA 2 SUPPORT DOCUMENTS • Power Supply Unit / General Arrangement: "PSU - 600kW" • Master Ozone Control Panel / Preliminary Design: "MOCP-Mods [F]" • Remote I/O Ozone Control Panel / Preliminary Design: "ROCP-Mods [F]" o Applicable to both Remote I/O panels • Ozone System Network Diagram / Preliminary Design: "Network -Mods [F]" File: 651414PROP260413-003.docx Page 2 of 27 Q VEOLIA ABBREVIATIONS LOX GOX LN2 IGS / IGS+ Liquid Oxygen Gaseous Oxygen Liquid Nitrogen Intelligent Gap System MOCP Master Ozone Control Panel OIT Operator Interface Terminal (aka LOI; Local Operator Interface) P&ID Process and Instrumentation Diagram PLC Programmable Logic Controller PSU Power Supply Unit AESS Applications Engineering System Supplier OSS OXSS BNM CFD MTE SVI Ozone System Supplier Oxygen System Supplier Basin Nozzle Manifold. Computational Fluid Dynamics Mass Transfer Efficiency Side -stream Venturi Injector File: 651414PROP260413-003.docx Page 3 of 27 Q VEOLIA 3 SCOPE OF SUPPLY — HIGH LEVEL 1. Engineering 1. Oxygen Gas Source System 2. Oxygen Gas Header 3. Supplemental Nitrogen Gas Source System 5. Ozone Generation System 6. Ozone Generation Cooling System 7. Ozone Delivery System 8. Ozone Contacting and Off -Gas System 9. Ozone Destruct System 10. Ozone Control System 12. Spare Parts & Tools 13. Factory Testing 14. Field Services (Inspect, Start -Up, Training) 16. Options ** See details Not Applicable Not Applicable Not Applicable Three (3) Ozone Power Supply Units Cleaning & Reconditioning of three (3) Generators Not Applicable Not Applicable Not Applicable Not Applicable MOCP — Master Ozone Control Panel - Back -panel with PLC, I/O racks & panel devices ROCP1 — Remote I/O Ozone Control Panel - South - Back -panel with I/O racks & panel devices ROCP2 — Remote I/O Ozone Control Panel - North - Back -panel with I/O racks & panel devices Not Applicable ** See details ** See details None at this time File: 651414PROP260413-003.docx Page 4 of 27 Q VEOLIA 4 SCOPE OF SUPPLY — DETAILED 4.1 Engineering 4.1.1 Team Our strategically positioned engineering teams execute seamlessly across two key locations: our Leonia, New Jersey office in the United States and our Montreal, Quebec office in Canada. This dual -location approach provides numerous benefits for our clients: • Expanded Expertise: By leveraging talent pools from both countries in North America, we ensure access to a diverse range of skilled engineers and specialists. This allows us to tackle a wider variety of projects with precision and innovation. • Cross -Border Capabilities: Our presence in both the U.S. and Canada positions us uniquely to handle projects with international components, understanding regulations and standards on both sides of the border. • Cultural Diversity: The multicultural environments of New Jersey and Montreal infuse our work with varied perspectives, fostering creativity and problem -solving. • Language Versatility: With a bilingual team (English and French), we can effectively communicate with a broader range of clients and partners. • Economic Flexibility: Our dual locations allow us to optimize costs and resources, potentially offering more competitive pricing for our clients. • Local Presence, Global Reach: While maintaining a strong local presence in two key markets, our dual -office setup also positions us for broader North American and international projects. Whether you're based in the United States, Canada, or anywhere else in the world, our Leonia and Montreal offices work in perfect synergy to deliver top -tier engineering services tailored to your specific needs. 4.1.2 Standard Service Engineering will be in accordance with the issued specifications. Veolia will provide all necessary design, installation and operating information for equipment provided by Veolia. Veolia will coordinate and review other equipment items associated with the ozone system but will not be responsible for the design, installation and operation of equipment and systems supplied by others. Engineering information by Veolia for equipment that it supplies shall consist of: • System Integration Engineering • General equipment orientation and dimensional drawings for all equipment and system components. • Process and Instrumentation drawings (P&ID) for each piece of equipment as well as the for entire ozone system • Electrical schematics, panel layouts and interconnecting terminal block drawings for all controls and instruments supplied. • Office and field coordination with the engineer, general and subcontractors. • Equipment layout and data including manufacturer, model, power requirements, capacity, and materials of construction. • Storage, handling, and erection requirements • Foundation loading and anchor bolt calculations • Testing procedures • Performance test procedures • Operations and Maintenance manuals 4.1.3 Specified Service No engineering services beyond what has been listed under "Standard Service". 4.2 Engineering Coordination (Meetings and Workshops) Principle Specification Section: N/A File: 651414PROP260413-003.docx Page 5 of 27 Q VEOLIA See section "Conditions of Field Service" of this proposal for definitions of WORK, TRAVEL and STANDBY TIME and the rates that apply to each. Please note the three (3) applicable rates that would apply if service were required in addition to the times allotted by the base proposal. Definition of "calendar -days" is Monday through Friday, 8 -hour periods. Veolia has included and will participate to the following meetings, in person or through online conference meetings. 4.2.1 Pre -Submittal & Kick-off Meeting In reference to specification: Not applicable • Veolia will host a conference with the Owner to establish scheduling, submittal format, and discuss any clarifications that may require resolution ahead of the engineering submittal. • This meeting will be online, not in person 4.2.2 Pre -Installation Coordination Workshop In reference to specification: Not applicable • Veolia will participate in a workshop with the Owner prior to the installation of the equipment • This meeting will be online, not in person. 4.3 Ozone Generation System Principle Specification Section: N/A Specification P&ID Reference: N/A Veolia P&ID: N/A 4.3.1 General Ozone (O3) is a tri-atomic gas, obtained by the ionization of oxygen (O2) by means of a high -voltage AC current applied between two electrodes separated by a gap through which the oxygen flows. The AC voltage is provided by the Power Supply Unit. Gas at the generator discharge is a mixture of ozone and oxygen at a pre-set concentration. 4.3.2 Scope of Supply • Power Supply Unit / Power Supply Unit Control Panel (Qty: 3) o New PSU model number: IPR-16-0600-WC-12 o Provide an entirely new cabinet; footprint and general arrangement will differ slightly from the existing o Internal power cables prewired and terminated o Internal control cables prewired from I/O modules to terminals, utilising Veolia mechanical & electrical standards (type of terminals, wire colors, etc.) o Panel will be equipped with new Programmable Logic Controller (PLC) processor, appropriate Input/Output (I/O) modules, new Operator Interface Terminal (OIT) o Communication will be Ethernet -based, utilising ModBUS/TCP (Schneider Electric) as the primary communication protocol (existing) as well as the internal communication protocol. o Replacement High Voltage (HV) cables (between PSU and ozone generator vessel) • Ozone Generator Parts and Services o Generator Vessel Reconditioning/Cleaning ■ Removal of existing dielectrics and cleaning of ozone generator File: 651414PROP260413-003.docx Page 6 of 27 Q VEOLIA ■ Replacement of internal failed components (dielectrics, rods, etc.) ■ Replacement of all High -Voltage Fuses • Replacement of O -rings • Purging o Generator Vessel Reconfiguration • Re -arrangement of the power distribution grid (from 50/50 to 66/33) • Replacement of High Voltage Bushing(s) • Provisional Item(s): o Modification High Voltage (HV) Termination Box 4.3.3 Skidded & Pre -Assembled Equipment • Power Supply Unit / Power Supply Unit Control Panel QTY DESCRIPTION I TAG NO. I ADDITIONAL DETAILS 2 Power Supply Unit PSU #1 PSU #2 PSU #3 The PSU is a model IPS-16-0600-WC-12 Medium Frequency unit. The PSU utilizes the latest in IGBT (Insulated Gate Bipolar Transistor) power converter technology (Ozonia® I -Stacks) and shall be in full compliance with IEEE 519 electrical specification. The PSU, and subsequently the associated ozone generator equipment, will be controlled by a programmable logic controller (PLC) and operators will be provided local controllability via a panel -mounted operator interface (OIT). The programming and configuration of both the PLC and OIT will follow Veolia Standard Programming Practices and Established Code Standards Communication will be Ethernet -based, utilising ModBUS/TCP (Schneider Electric) as the primary communication protocol, matching the facility's existing control protocol. PSU SPECIFICATION Hardware Mechanical NEMA-12 Painted Steel enclosure Size: 116.5" (L) x 85.75" (W) x 91" (H) Automation & Control Components PLC Schneider Electric M580 Series, CPU580-40: BMEP582040 PLC I/O Structure Schneider Electric, x80 Series • Digital Input: BMXDAI1604 • Digital Output: BMXDDO1602 • Analog Input: BMXAMI0810 • Analog Output: BMXAMO0802 Operator Interface Schneider Electric Magelis GTU Series, 12.1", HMI DT642 w/ HMI G5U22 control box Communication Extreme Networks Hardware (Ethernet) 16804 Connections: (8x) RJ-45 POE+ 10/100/1000, managed File: 651414PROP260413-003.docx Page 7 of 27 Q VEOLIA QTY DESCRIPTION TAG NO. ADDITIONAL DETAILS Uninterruptable Schneider Electric / APC Power Supply (UPS) SMT500J 500VA 4.3.4 Loose Equipment The following lists the total quantities required for the project QTY DESCRIPTION TAG NO. ADDITIONAL DETAILS As Spool of High Voltage (HV) N/A 4/0 AWG (5kV) needed Cable One (1) cable run is required per power stage. Actual bulk length will be determined during Site Survey As Spool of Return Cable N/A 4/0 AWG (5kV) needed One (1) cable run is required per power stage. Actual bulk length will be determined during Site Survey As Spool of Ground Cable N/A #4 AWG (bare copper) needed One (1) cable run is required per power stage. Actual bulk length will be determined during Site Survey 12 Cold shrink termination kits N/A Installation Contractor to pull all new cables via new conduits. Installation Contractor will terminate ground cable VEOLIA will terminate HV and RETURN cables 3 Large High Voltage Bushing N/A Appropriately sized for connecting 400 kW power stage to generator vessel 3 Small High Voltage Bushing N/A Appropriately sized for connecting 200 kW power stage to generator vessel 6 Vessel O -Ring N/A Viton 939 High -Voltage Fuses N/A 313 per vessel 1 Lot of internal vessel N/A Parts made available to replace components (rods, dielectrics, those determined failed or fuses, etc.) equal to 10% of total damaged during the for one vessel reconditioning/cleaning process. Unused components will be relinquished to the end -user File: 651414PROP260413-003.docx Page 8 of 27 Q VEOLIA 4.4 Ozone Control System Principle Specification Section: N/A Specification P&ID Reference: N/A Veolia P&ID: N/A 4.4.1 General The entire ozone system is monitored and controlled through one (1) PLC -based panel, the Master Ozone Control Panel (MOCP) and two (2) remote I/O panels, the North Ozone RIO Panel (NH-LCP-C- 99) and the South RIO Panel (SH-LCP-C-100). All three panels will be retrofitted with new back -panels, equipped with new automation hardware; PLC, I/O modules, I/O racks, and an OIT in the case of the MOCP. The programming and configuration of both the PLC and OIT will follow Veolia Standard Programming Practices and Established Code Standards 4.4.2 Master Ozone Control Panel — MOCP PSU SPECIFICATION Hardware Mechanical I Existing panel Automation & Control Components PLC Schneider Electric M580 Series, CPU580-40: BMEP582040 PLC I/O Structure Schneider Electric, x80 Series • Digital Input: BMXDAI1604 • Digital Output: BMXDDO1602 • Analog Input: BMXAMI0810 • Analog Output: BMXAMO0802 Operator Interface Schneider Electric Magelis GTU Series, 15", HMI DT732 w/ HMI G5U22 control box 4.4.3 North Ozone RIO Panel - NH-LCP-C-99 PSU SPECIFICATION Hardware Mechanical I Existing panel Automation & Control Components PLC I/O Structure Schneider Electric, x80 Series • Digital Input: BMXDAI1604 • Digital Output: BMXDDO1602 • Analog Input: BMXAMI0810 • Analog Output: BMXAMO0802 File: 651414PROP260413-003.docx Page 9 of 27 Q VEOLIA 4.4.4 South Ozone RIO Panel - SH-LCP-C-100 PSU SPECIFICATION Hardware Mechanical I Existing panel Automation & Control Components PLC I/O Structure Schneider Electric, x80 Series • Digital Input: BMXDA11604 • Digital Output: BMXDDO1602 • Analog Input: BMXAM10810 • Analog Output: BMXAMO0802 4.4.5 Notable Features The following are some of the notable features associated with a standard Veolia Ozone Control System: A. Intelligent "Out of the Box" Control Strategies: Veolia provides standard features with its ozone control systems that will: a. Adapt to changing process demands through dynamic control algorithms b. Adapt ozone production schemes by determining the appropriate ozone concentration when demands are below achievable thresholds c. Maintain precise ozone dosage control d. Provide appropriate life safety strategies e. Integrate seamlessly with existing plant control systems f. Minimize operator intervention through automated operation modes g. Facilitate easy troubleshooting with comprehensive alarming strategies h. Support multiple communication protocols for flexible integration These features are designed to enhance the overall performance, efficiency, and reliability of the ozone production and delivery process while simplifying operation and maintenance for plant personnel B. Fully Accessible Memory: The local OIT on the MOCP need not be the only interface available to the operators. Operators are not confined to using only the interface physically attached to the MOCP because Veolia provides a flexible and open approach to plant -level SCADA development. Facility SCADA developers are granted full access to the MOCP's PLC memory map, as well as any other PLC provided in other control panels, which enables the mimicking of all interfaces developed on local OlTs. This approach means that the operator may access the features of the ozone system from any location within the facility. Provided the infrastructure is in place, it can also provide remote monitoring of the entire ozone system. Finally, the SCADA (or another secondary operator interface) inherently becomes a backup to the MOCP OIT (or vice versa). 4.5 Factory Testing 4.5.1 Location Veolia centralizes all their factory testing activities at our Ancaster, Ontario, Canada facility. Our facility is ideally situated for your convenience. Our strategic location offers excellent accessibility, ensuring that your visit to us will be smooth and hassle -free. Our facility is ideally located, making it easily reachable from various parts of the city. We're well- connected to major transportation networks, including: File: 651414PROP260413-003.docx Page 10 of 27 Q VEOLIA • Major highways: We're just minutes away from key highway intersections, making driving to us a breeze. • Airport proximity: For out-of-town visitors, we're conveniently located within a 60 -minute drive from the airport. For those requiring overnight accommodations, a variety of hotel options to suit every preference and budget are available in our neighbouring city of Hamilton, Ontario, Canada. 4.5.2 Unwitnessed Factory Testing Principle Specification Section: N/A Veolia places a strong emphasis on rigorous testing and validation of all equipment before it leaves our facility. This commitment to quality assurance ensures that every system we ship meets our high standards of performance and reliability. Our comprehensive testing procedures involve thorough functional checks and simulated operational conditions. This meticulous approach not only minimizes the risk of issues arising during installation and commissioning at the customer's site but also demonstrates our dedication to delivering products that perform as promised from day one. By investing time and resources in pre -shipment testing, we aim to streamline on -site installation, reduce potential downtime, and ultimately provide our customers with confidence in the equipment they receive. Each skidded or pre -assembled equipment will be subjected to our highest attention in quality control and functional verification. This includes a comprehensive series of tests and inspections tailored to the specific equipment: • Functional testing of all components • Pressure and leak tests on all fluid systems • Electrical safety and continuity checks • Calibration of instruments and sensors • Simulation of various operational scenarios • Verification of control system logic and responses • Performance testing under simulated load conditions (when load isn't available) • Performance testing under actual load conditions (when load is available) • Documentation review and completeness check • and final visual inspection for fit and finish. All factory test procedure and signed checklists are submitted following completion of the Unwitnessed Factory Test. 4.5.3 Witnessed Factory Testing Principle Specification Section: N/A Witnessed factory testing is not included in this offer. 4.6 Field Services (Meetings, Inspections, Start -Up, Training) Principle Specification Section: N/A See section "Conditions of Field Service" of this proposal for definitions of WORK, TRAVEL and STANDBY TIME and the rates that apply to each. Please note the three (3) applicable rates that would apply if service is required in addition Definition of "calendar -days" is Monday through Friday. See section "Conditions of Field Service" of this proposal for definitions of WORK, TRAVEL and STANDBY TIME and the rates that apply to each. Please note the three (3) applicable rates that would apply if service is required in addition to the times allotted by the base proposal. Veolia will provide File: 651414PROP260413-003.docx Page 11 of 27 Q VEOLIA 4.6.1 Installation Assistance In reference to specification N/A • Installation Assistance: Review concerns with installations and provide guidance where applicable. TOTAL TOTAL TOTAL TRIPS Man -days Calendar -days Man-hours * 3 1 4.6.2 Pre -Start -Up Ozone Generator Modification In reference to specification N/A This will be a phased installation, where one unit will be modified at a time. • Generator Vessel Reconditioning/Cleaning • Generator Vessel Reconfiguration • First Ozone Generator TOTAL TOTAL TOTAL TRIPS Man -days Calendar -days Man-hours 10 5 * 1 • Second Ozone Generator TOTAL TOTAL TOTAL TRIPS Man -days Calendar -days Man-hours 10 5 * 1 • Third Ozone Generator TOTAL TOTAL TOTAL TRIPS Man -days Calendar -days Man-hours 10 5 * 1 4.6.3 Inspection & Functional Testing In reference to specification N/A This will be a phased installation, where on one unit will be retrofitted at a time. • Inspection & Functional Testing: Final Inspection, Operational Readiness Testing, Commissioning, Functional Validation Testing, Training • First Power Supply Unit TOTAL TOTAL TOTAL TRIPS Man -days Calendar -days Man-hours * 10 * * • Second Power Supply Unit TOTAL TOTAL TOTAL TRIPS Man -days Calendar -days Man-hours * 5 * * • Third Power Supply Unit File: 651414PROP260413-003.docx Page 12 of 27 Q VEOLIA TOTAL Man -days • Control System TOTAL Man -days * TOTAL TOTAL TRIPS Calendar -days Man-hours 5 * * TOTAL TOTAL TRIPS Calendar -days Man-hours 20 * Multiple 4.6.4 Production Test In reference to specification N/A • To validate that each ozone generator together with their new PSU will produce ozone as per the original rated production capacity. Test Production Ozone Maximum CW Temperature Point Rate Concentration (@ vessel) used for sizing #1 3,250 lbs/day 8 %/wt 90 °F #2 1,997 lbs/day 12 %/wt 90°F • For all units TOTAL Man -days * TOTAL TOTAL TRIPS Calendar -days Man-hours 3 * 1 File: 651414PROP260413-003.docx Page 13 of 27 Q VEOLIA 5 WARRANTY Veolia shall provide the following warranties for the equipment provided under this proposal following substantial completion or eighteen (18) months following delivery of equipment. • One (1) year general warranty o Warranty will cover all equipment, material, and labor required to repair or replace the equipment at no charge to the end -user NOTE: The above stipulation complements item e) of paragraph 6 of the "General Terms and Conditions of Sale". File: 651414PROP260413-003.docx Page 14 of 27 Q VEOLIA 6 CLARIFICATIONS None currently File: 651414PROP260413-003.docx Page 15 of 27 Q VEOLIA 7 DEVIATIONS None currently File: 651414PROP260413-003.docx Page 16 of 27 Q VEOLIA 8 SCHEDULE / TIMEFRAME The following remains to be finalized. • Order approved, signed, and returned • Submittal of detailed engineering: • Fabrication, testing, packaging. Completed by... • Delivery to site • Commissioning, Start -Up, Training: • Production Testing TBD 10 to 12 weeks following approved order 52 to 54 weeks following approved submittal 2 weeks from release for delivery TBD TBD File: 651414PROP260413-003.docx Page 17 of 27 Q VEOLIA 9 EXCLUSIONS to VEOLIA Scope of Supply The following are excluded from the VEOLIA offer and will not be part of VEOLIA scope of supply. These will need to be provided by others: 9.1 Witnessed Factory Testing There are no provisions for witnessed factory testing 9.2 Control Panel Modification Work associated with the addition of new hardware to existing/retained control panels will be done by others. Work associated with modifications to the wiring of existing/retained control panels will be done by others. 9.3 SCADA/DCS Development The development, management, and general responsibility of the client's SCADA/DCS will be done by others. 9.4 Generalized Work The following items are not included in the proposed selling price and will be by others unless specifically called for in the body of this proposal: • Removal and disposal of the existing Power Supply units, and any other component and equipment being demolished as part of this project • Installation of the new Power Supply Units or any other component and equipment, both mechanically and electrically as stated in the submittal drawings • Equipment unloading, storage or erection. • Interconnecting and intra-connecting electrical wiring except in skid mounted packaged equipment. • Interconnecting and intra-connecting oxygen, ozone or water piping and manual valves between the oxygen system components, ozone system components, equipment skids, contactors or ozone destruct system components except as noted. • Wall sleeves and fittings. • HVAC. • Control wiring or piping. • Insulation on ozone generators, cooling water piping, ozone destructors or other hot or cold surfaces. • Air, ozone, liquid oxygen, gaseous oxygen or water piping. • Anchor bolts • Instruments and valves except as noted. • Instrument air, instrument tubing or fittings. • Power wiring and conduit. • Motor control center and local disconnects. • Field calibration of existing instruments. File: 651414PROP260413-003.docx Page 18 of 27 Q VEOLIA 10 GENERAL 10.1 Shop Testing of Equipment The equipment described in this proposal will be, where possible and required, functionally tested at the factory prior to shipment. 10.2 Design The equipment described in this proposal will be of manufacturer's standard design and, where shipping tolerances require, will be shipped knocked down for installation in the field by others. 10.3 Scope - Material The equipment to be furnished by VEOLIA will include only those major equipment items normally manufactured or supplied by VEOLIA as specifically listed in the equipment section of this proposal. Other items required to complete installation such as, but not limited to, wiring, conduit, starters, insulation, finish coats of paint, and pipe and fittings external to the major equipment components, will be done by others unless otherwise specified herein. 10.4 Scope - Services This proposal does not include any expense for unloading, storage, erection, or supervision of erection. File: 651414PROP260413-003.docx Page 19 of 27 Q VEOLIA 11 Conditions of Field Service If this Contract does not include Field Service or if Purchaser requires such service in addition to that included in this Contract, Purchaser may purchase from VEOLIA such Field Service or technical advice during installation or start up of the Products, in which case Purchaser agrees to pay VEOLIA for Work Time, Travel Time and Standby Time based on (I) VEOLIA's "per diem" rates in effect at the time the service is performed; (2) the expenses of each ONA employee so furnished; and (3) the terms and conditions under which such service is performed. "PER DIEM" CHARGES FOR SERVICE The following rates are currently in effect. They are subject to change by VEOLIA and are based on the definitions below. These rates are for domestic service only. Rates for service outside the Continental United States will be quoted upon request. Classification of Serviceman STANDARD SERVICE TIME DEFINITIONS (a) Work Time - shall include all hours that Veolia service personnel are on Purchaser's job site, either working or ready for work, and shall be payable at the applicable specified rates. (b) Travel Time - shall include the time spent by Veolia service personnel in traveling between their customary headquarters and Purchaser's job site and in returning (including travel occurring on Saturdays, Sundays and holidays) up to a maximum of eight (8) hours chargeable time for any given one-way trip. Travel Time shall be paid for at the applicable Straight Time Rate and shall not be cumulative with Work Time in determining Overtime. (c) Standby Time - shall include all time (excluding Work Time) that Veolia service personnel are available for work at Purchaser's job site, whether on the job site or not, up to a maximum of eight (8) hours per day, between the hours of 7:00 a.m. and 6:00 p.m., Sunday through Saturday, including holidays if availability has been requested by Purchaser. Standby Time shall be paid for at the applicable Straight Time Rate; however, Standby Time preceded and/or followed by Work Time is cumulative in determining Overtime. RATE DEFINITIONS (a) Straight Time Rate - This rate shall be paid for Work Time, Standby Time or Travel Time on a regular schedule of eight (8) hours per day, Monday through Friday. (b) Time and One -Half Rate - The rate of one and half (1-1/2) times the Straight Time Rate shall be paid for any Work Time or Standby Time in excess of eight (8) hours, but not exceeding sixteen (16) hours, per day, Monday through Friday, and for any Work Time or Standby Time on Saturdays, not to exceed sixteen (16) hours. (c) Double Time Rate - The rate of twice the Straight Time rates shall be paid for time worked in excess of sixteen (16) hours per day, without a six (6) hour break, Monday through Saturday, and for all time worked on Sundays and holidays. Holidays shall be those observed in the locality where the work is to be performed. Straight Time Rate $ 2,065 USD Per day TERMS AND CONDITIONS (I) Notification - Purchaser shall give Veolia at least two (2) weeks advance notice when ordering Field Service. (2) Terms of Payment - Purchaser shall pay Veolia immediately upon receipt of invoices covering the time and expenses of Veolia's employees furnished for such services. OVERDUE PAYMENTS NOT RECEIVED BY VEOLIA WITHIN THIRTY (30) DAYS FROM DATE OF INVOICE SHALL BE SUBJECT TO FINANCE CHARGES AT THE RATE OF ONE AND ONE-HALF PERCENT (1-1/2%) PER MONTH. (3) Time Sheets - Veolia employees shall present Purchaser at the end of each week or at the completion of the job if less than one (I) week, appropriate documents on which shall be indicated the number of hours spent and the estimated expense incurred on this work. Purchaser shall sign these documents in the place indicated, thus signifying approval of the time spent and estimated expense incurred on this work. (4) Delays - If the work of an Veolia employee is postponed or suspended by Purchaser or is delayed or does not proceed with reasonable dispatch, due to no fault of Veolia, Veolia may withdraw such employee and return a serviceman to the job when needed and available; and any additional costs (including Travel Time and expenses) incurred by Veolia because of this shall be an additional charge to Purchaser. (5) Limitation of Liability - Veolia in providing any Field Service hereunder, shall do so in an advisory capacity only and shall not be held responsible in any way for the acts, workmanship or omissions of the employees, contractors, sub -contractors or agents of Purchaser. VEOLIA SHALL NOT BE LIABLE IN ANY EVENT FOR SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGE. File: 651414PROP260413-003.docx Page 20 of 27 Q VEOLIA 12 General Terms and Conditions of Sale — Sale of Capital Equipment 1. Exclusive Terms and Conditions. Together with any other terms the Parties agree to in writing, these General Terms and Conditions — together with the last proposal in order of time issued by the Seller — form the exclusive terms ("Agreement") whereby Buyer agrees to purchase, and Seller agrees to sell products and equipment (jointly "Equipment") and to provide advice, instruction and other services in connection with the sale of that Equipment ("Services"). If Buyer sends to Seller other terms and conditions to which Seller may not respond, including but not limited to those contained in Buyer's purchase order, such shall not apply. This Agreement may only be revised by a change order approved in writing by both Parties. All terms not defined herein shall be defined in Seller's proposal. 2. Equipment and Services. The Equipment to be delivered and the Services to be provided shall be as set out in this Agreement. Unloading, handling, storage, installation, and operation of Buyer's systems or the Equipment are the responsibility of Buyer. Buyer shall not require or permit Seller's personnel to operate Buyer's systems or the Equipment at Buyer's site. 3. Prices and Payment. Buyer shall pay Seller for the Equipment and Services in accordance with the payment schedule (as set forth in Seller's proposal or, if applicable, in any special conditions agreed to in writing by the Parties). Unless otherwise specified in writing, payment is due net thirty (30) days from the date of Seller's invoice. Seller may require a Letter of Credit or other payment guarantee, in which case the stated amount of the guarantee will be adjusted by Buyer in the event of any currency -based adjustment to prices or payment amounts per the Payment Schedule, and Buyer shall deliver the adjusted guarantee within five (5) days of request by Seller. Buyer agrees to reimburse Seller for collection costs, including 2% (two per cent) interest per month (not to exceed the maximum amount permitted by applicable law), should Buyer fail to timely pay. Buyer shall have no rights to make any deduction, retention, withholding or setoff relating to any payments due under this Agreement. 4. Taxes and Duties Seller shall be responsible for all corporate taxes measured by net income due to performance of or payment for work under this Agreement ("Seller Taxes"). Buyer shall be responsible for all taxes, duties, fees, or other charges of any nature (including, but not limited to, consumption, gross receipts, import, property, sales, stamp, turnover, use, or value-added taxes, and all items of withholding, deficiency, penalty, addition to tax, interest, or assessment related thereto, imposed by any governmental authority on Buyer or Seller or its subcontractors) in relation to the Agreement or the performance of or payment for work under the Agreement other than Seller Taxes ("Buyer Taxes"). The Agreement prices do not include the amount of any Buyer Taxes. If Buyer deducts or withholds Buyer Taxes, Buyer shall pay additional amounts so that Seller receives the full Agreement price without reduction for Buyer Taxes. Buyer shall provide to Seller, within one month of payment, official receipts from the applicable governmental authority for deducted or withheld taxes. Buyer shall furnish Seller with evidence of tax exemption acceptable to taxing authorities if applicable, prior to execution of the Agreement by both Parties or issuance by the Seller of the order acceptance. Buyer's failure to provide evidence of exemption at time of order will relieve Seller of any obligation to refund taxes paid by Seller. 5. Delivery, Title, Risk of Loss. Unless otherwise specified in this Agreement, Seller shall deliver all Equipment to Buyer FCA (Incoterms 2010) Seller's facility. The time for delivery of the Equipment to Buyer shall be specified in this Agreement. Seller's sole liability for any delay in delivery of the Equipment shall be as expressly set out in this Agreement. The place of delivery specified herein shall be firm and fixed, provided that Buyer may notify Seller no later than forty-five (45) days prior to the scheduled shipment date of the Equipment of an alternate point of delivery, Buyer shall compensate Seller for any additional cost in implementing the change. If any part of the Equipment cannot be delivered when ready due to any cause not attributable to Seller, Buyer shall designate a climate -controlled storage location, and Seller shall ship such Equipment to storage. Title and risk of loss shall thereupon pass to Buyer, and amounts payable to Seller upon delivery or shipment shall be paid by Buyer along with expenses incurred by Seller. Services provided herein shall be charged at the rate prevailing at the time of actual use and Buyer shall pay any increase, and Buyer shall pay directly all costs for storage and subsequent transportation. Failure by Buyer to take delivery of the Equipment shall be a material breach of this Agreement. Title and risk of loss to the Equipment shall be transferred from Seller to Buyer at the point of delivery upon handover in accordance with this Agreement. Title and risk of loss to the Services shall pass as they are performed. 6. Warranties and Remedies. Seller warrants that Equipment shall be delivered free from defects in material, workmanship and title and that Services shall be performed in a competent, diligent manner in accordance with any mutually agreed specifications. Seller's warranty does not cover the results of improper handling, storage, installation, commissioning, operation or maintenance of the Equipment by Buyer or third parties, repairs or alterations made by Buyer without Seller's written consent, influent water which does not comply with agreed parameters, or fair wear and tear. Unless otherwise expressly provided in this Agreement, the foregoing warranties are valid for: (a) chemicals and Services, for six (6) months from their date of delivery or the provision of Services; (b) consumables, including filters and spiral wound membranes (other than spiral wound membranes for process treatment), the earlier of twelve (12) months from date of first use of fifteen (15) months from their date of delivery; (c) spiral wound membranes for process fluid treatment, ninety (90) days from their date of first use; (d) ultrafiltration membranes (ZW500, ZW700B, ZW1000, ZW1500), twelve (12) months from their date of delivery; (e) Equipment other than chemicals and consumables, the earlier of, twelve (12) months from acceptance or thirty (18) months from delivery of equipment; (f) software, ninety (90) days from the date of receipt; (g) Equipment not manufactured by Seller, the warranty shall be the manufacturer's transferable warranty only, Any claim for breach of these warranties must be promptly notified in writing, and Buyer shall make the defective item available to the Seller, or the claim will be void. Seller's sole responsibility and Buyer's exclusive remedy arising out of or relating to the Equipment or Services or any breach of these warranties is limited to repair at Seller's facility or (at Seller's option) replace at Seller's facility the defective item of Equipment, and re -perform defective Services. In performance of its obligations hereunder, Seller will not control the actual operation of either Buyer's systems or the Equipment at the Buyer's site. Warranty repair, replacement or re -performance by Seller shall not extend or renew the applicable warranty period. File: 651414PROP260413-003.docx Page 21 of 27 Q VEOLIA The warranties and remedies are conditioned upon (a) proper unloading, handling, storage, installation, use, operation, and maintenance of the Equipment and Buyer's facility and all related system in accordance with Seller's instructions and, in the absence, generally accepted industry practice, (b) Buyer keeping accurate and complete records of operation and maintenance during the warranty period and providing Seller access to those records, and (c) modification or repair of Equipment or Services only as authorized by Seller in writing. Failure to meet any such conditions renders the warranty null and void. The Buyer will be entitled to assign to a subsequent owner of the Equipment the warranties of the Seller under this Agreement, provided that a prior written notification is sent to the Seller and the assignment agreement contains terms and conditions which provide the Seller with the protections of the warranties and limitations on liability contained in the Agreement. Subject to Buyer's compliance with the foregoing requirement, such warranty rights are expressly assignable by the Buyer to a subsequent owner of the Equipment. Except as provided herein, Buyer is not entitled to extend or transfer this warranty to any other party. The warranties and remedies set forth in this article are in lieu of and exclude all other warranties and remedies, statutory, express or implied, including any warranty of merchantability or of fitness for a particular purpose. Unless otherwise expressly stipulated in this Agreement, Seller gives no warranty or guarantee as to process results or performance of the Equipment, including but not limited to product quality, flow, production, capacity, membrane life, chemical consumption, regulatory compliance or energy consumption. 7. General Indemnity. Seller shall indemnify and hold harmless Buyer from claims for physical damage to third party property or injury to persons, including death, to the extent caused by the negligence of Seller or its officers, agents, employees, and/or assigns while engaged in activities under this Agreement. Buyer shall likewise indemnify and hold harmless Seller from claims for physical damage to third party property or injury to persons, including death, to the extent caused by the negligence of the Buyer, its officers, agents, employees, and/or assigns. In the event such damage or injury is caused by the joint or concurrent negligence of Seller and Buyer, the loss shall be borne by each Party in proportion to its negligence. For the purposes of this article (i) "Third party" shall not include Buyer or any subsequent owner of the Equipment, their subsidiaries, parents, affiliates, agents, successors or assigns including any operation or maintenance contractor, or their insurer; and (ii) no portion of the Equipment is "third party property". 8. Compliance with Laws and Permits. All permits, authorisations, and licenses which are required to construct, install and/or operate Buyer's facility or equipment, to use the Equipment, or to manage and dispose of any wastes, discharges, and residues resulting from Buyer's use of the Equipment, shall be obtained and maintained by Buyer at Buyer's sole expense. Buyer is responsible for compliance with all laws and regulations applicable to the storage, use, handling, installation, maintenance, removal, registration, and labelling of all Equipment after delivery of the Equipment, as well as for the proper management and disposal of all wastes, discharges, and residues. 9. Buyer's Site Conditions. Buyer warrants that any data furnished to the Seller concerning conditions at Buyer's site (including but not limited to any existing Buyer facility, equipment or processes, influent water or other substances to be treated or measured with the Equipment) is accurate and complete, and the Seller reserves the right to utilize the most appropriate design compatible with generally accepted engineering practices, and to make changes in details of design, manufacture and arrangement of Equipment unless precluded by any limitations specified in this Agreement. Seller shall notify Buyer of (1) any conditions at Buyer's site which materially differ from those indicated in the data furnished by Buyer, (2) any previously unknown physical conditions at Buyer's site of an unusual nature, not revealed by previous investigations and differing from those ordinarily encountered in the type of work provided for in this Agreement, and (3) the presence of any Hazardous Materials (as defined below), the existence of a contaminated soil, unexploded ordinance, or archaeological remains. If such conditions cause an increase in Seller's cost or in the time required for the performance of Seller's obligations, Seller shall be entitled to an equitable adjustment in the Agreement price and an extension in the time for performance. 10. Hazardous Materials and Wastes. In the event that Seller encounters any Hazardous Materials (meaning toxic substances, hazardous substances, pollutants, contaminants, regulated wastes, or hazardous wastes as such terms may be defined or classified in any law, statute, directive, ordinance or regulations promulgated by any applicable governmental entity) at Buyer's site, other than Hazardous Materials introduced by Seller or that are otherwise the express responsibility of Seller under this Agreement, Buyer shall immediately take whatever precautions are required to legally eliminate such Hazardous Materials so that the Seller's work under this Agreement may safely proceed. At no time shall Seller be deemed to have taken title to or the responsibility for the management or disposal of any wastes, Hazardous Materials, influent water, any resultant product streams, wastewater streams, discharges, cleaning materials, or any other materials or substances processed by the Equipment or otherwise located at Buyer's site. Seller does not take responsibility for and hereby expressly disclaims responsibility for the characterization or disposal of wastes, Hazardous Materials, or for the identification, selection, or management of disposal facilities for any wastes. 11. Excusable Delays. Seller shall not be liable nor in breach or default of its obligations under this Agreement to the extent performance of such obligations is delayed or prevented, directly or indirectly, due to causes beyond the reasonable control of Seller, including, but not limited to: acts of God, natural disasters, unusually severe weather, fire, terrorism, war (declared or undeclared) epidemics, material shortages, insurrection, act (or omissions) of Buyer or Buyer's contractors/suppliers or agents, any act (or omission) by any governmental authority, strikes, labour disputes, transportation shortages, or vendor non-performance. The delivery or performance date shall be extended for a period equal to the time lost by reason of delay or non-performance, plus such additional time as may be necessary to overcome the effect of the delay or non-performance. If delivery or performance is delayed for a period exceeding 180 (one hundred and eighty) days, either Party may terminate this Agreement without further liability provided that Seller shall be paid an amount equal to that which would be payable to Seller under the article entitled "Termination". If Seller is delayed by any acts (or omissions) of Buyer, or by the prerequisite work of Buyer's other contractors or suppliers, Seller shall be entitled to an equitable adjustment in schedule, price and/or performance, as applicable. 12. Emergencies. If the safety of Seller's personnel is threatened or likely to be threatened by circumstances outside the reasonable control of Seller, including but not limited to war, armed conflict, civil unrest, riots, terrorism, kidnapping, presence of or exposure to hazardous materials, unsafe working conditions, or by the threat of such circumstances or a lack of adequate protections against such circumstances, Seller shall be entitled to take all necessary steps to ensure the security and safety of its personnel including the evacuation of personnel until such circumstances no longer apply. Any such occurrence shall be considered an excusable delay event. Buyer shall reasonably assist in the event of any such evacuation. 13. Confidentiality, Intellectual Property. Both Parties agree to keep confidential the other Party's proprietary non-public information, if any, which may be acquired in connection with this Agreement. Buyer will not, without Seller's advance written consent, subject Equipment File: 651414PROP260413-003.docx Page 22 of 27 Q VEOLIA to testing, analysis, or any type of reverse engineering. Seller retains all intellectual property rights including copyright which it has in all drawings and data or other deliverables (including the Equipment) supplied or developed under this Agreement. Buyer agrees that it will not file patent applications on the Equipment or any development or enhancement of the Equipment, or of processes and methods of using the Equipment, without Seller's express prior written permission. Buyer further agrees that in any event any such patents will not be asserted against Seller or its other buyers based upon purchase and use of such Equipment. Seller grants to Buyer a non-exclusive, non -terminable, royalty free license to use the intellectual property embedded in Equipment delivered to and paid for by the Buyer, as well as any drawings, design or data delivered to and paid for by the Buyer, for the purposes of owning, financing, using, operating and maintaining the relevant Equipment at Buyer's site. Such license may only be assigned to a subsequent owner of the Equipment or to an operations and maintenance subcontractor. Such license does not extend to the re-creation of the Equipment or the manufacture of spares or consumables by Buyer or third parties. Any software Seller owns and provides pursuant to this Agreement shall remain Seller's property. Seller provides to Buyer a limited, non- exclusive and terminable royalty free project -specific license to such software for the use, operation or maintenance at Buyer's site of any Equipment purchased hereunder to which the software is a necessary component. Buyer agrees not to copy, sub -license, translate, transfer, reverse engineer, or decode the software. Seller shall indemnify and hold harmless Buyer from any rightful claim of any third party that any Equipment or Service infringe a patent in effect in the USA, an EU member state or country of delivery (provided there is a corresponding patent issued by the USA or an EU member state), or USA copyright or copyright registered in the country of delivery. If the Buyer notifies the Seller promptly of the receipt of any such claim, does not take any position adverse to the Seller regarding such claim and gives the Seller information, assistance and exclusive authority to settle and defend the claim, the Seller shall, at its own expense and choice, either (i) settle or defend the claim and pay all damages and costs awarded in it against the Buyer, or (ii) procure for the Buyer the right to continue using the Equipment or Service, or (iii) modify or replace the Equipment or Service so that it becomes non -infringing, or (iv) remove the infringing Equipment and refund the price. The above paragraph shall not apply to any misuse of Equipment or Equipment which is manufactured to the Buyer's design, or to alleged infringement arising from the combination, operation, or use of any Equipment or Services with other equipment or services when such combination is part of any allegedly infringing subject matter. The foregoing list of sub -sections (i), (ii), (iii), and (iv) and related terms state the entire liability of the Seller for intellectual property infringement by any Equipment or Service. 14. Limitations on Liability. Notwithstanding anything else contained in this Agreement, to the maximum extent permitted by law, and regardless of whether a claim is based in contract (including warranty or indemnity), extra -contractual liability, tort (including negligence or strict liability), statute, equity or any other legal theory: (a) THE TOTAL LIABILITY OF THE SELLER AND OF ITS INSURER FOR ALL CLAIMS ARISING OUT OF OR RELATING TO THE PERFORMANCE OR BREACH OF THIS AGREEMENT OR USE OF ANY EQUIPMENT OR SERVICES SHALL NOT EXCEED THE TOTAL PRICE PAID BY BUYER UNDER THIS AGREEMENT OR (IN THE CASE OF AN AGREEMENT FOR SERVICES WITH A TERM OF MORE THAN ONE YEAR) THE ANNUAL PRICE PAYABLE BY BUYER UNDER THIS AGREEMENT; (b) IN NO EVENT SHALL SELLER BE LIABLE FOR ANY LOSS OF PROFIT OR REVENUES, LOSS OF PRODUCTION, LOSS OF USE OF EQUIPMENT OR SERVICES OR ANY ASSOCIATED EQUIPMENT, INTERRUPTION OF BUSINESS, COST OF CAPITAL, COST OF REPLACEMENT WATER OR POWER, DOWNTIME COSTS, INCREASED OPERATING COSTS, CLAIMS OF BUYER'S CUSTOMERS FOR SUCH DAMAGES, OR FOR ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL, INDIRECT, PUNITIVE OR EXEMPLARY DAMAGES; (c) SELLER'S LIABILITY SHALL END UPON EXPIRATION OF THE APPLICABLE WARRANTY PERIOD, PROVIDED THAT BUYER MAY CONTINUE TO ENFORCE A CLAIM FOR WHICH IT HAS GIVEN NOTICE PRIOR TO THAT DATE BY COMMENCING AN ACTION OR ARBITRATION, AS APPLICABLE UNDER THIS AGREEMENT, BEFORE EXPIRATION OF ANY STATUTE OF LIMITATIONS OR OTHER LEGAL TIME LIMITATION BUT IN NO EVENT - TO THE EXTENT PERMITTED BY APPLICABLE LAW - LATER THAN FIVE (5) MONTHS AFTER EXPIRATION OF SUCH WARRANTY PERIOD. For the purposes of this article, "Seller" shall mean Seller, its affiliates, subcontractors and suppliers of any tier, and their respective agents and employees, individually or collectively. If Buyer is supplying Seller's Equipment or Services to a third party, Buyer shall require the third party to agree to be bound by this article. If Buyer does not obtain this agreement for Seller's benefit for any reason, Buyer shall indemnify and hold Seller harmless from all liability arising out of claims made by the third party in excess of the limitations and exclusion of this article. 15. Termination. This Agreement and any performance pursuant to it may be terminated by either Party, and the consequences of such termination shall be as set out in the next paragraph, if the other Party (a) becomes insolvent, makes an assignment for the benefit of its creditors, has a receiver or trustee appointed for the benefit of its creditors, or files for protection from creditors under any bankruptcy or insolvency laws; or (b) fails to make any payment when due or to establish any payment security required by this Agreement, or commits a material breach or defaults in its material obligations under this Agreement, and such default is not cured within thirty (30) days of written notice from the other Party. Upon the termination of this Agreement by Buyer for cause (i) Seller shall reimburse Buyer the difference between that portion of the Agreement price allocable to the terminated scope and the actual amounts reasonably incurred by Buyer to complete that scope, and (ii) Buyer shall pay to Seller (a) the portion of the Agreement price allocable to Equipment completed, and (b) amounts for Services performed before the effective date of termination. Upon the termination of this Agreement by Seller for cause Buyer shall pay to Seller within thirty (30) days of receipt of invoice the price of all Equipment or Services delivered at the date of termination, plus an amount equal to all costs and expenses incurred in the engineering, sourcing, financing, procurement, manufacture, storage and transportation of the Equipment including materials, work in progress and any cancellation charges assessed against Seller by Seller's suppliers including reasonable overhead and profit on all such costs and expenses. Alternatively, if any schedule of termination payments has been agreed between the Parties, Buyer shall pay to Seller within thirty (30) days of receipt of invoice the amounts set out in that schedule. Seller shall have the right to suspend performance upon written notice to Buyer in any case where Seller would have the right to terminate the Agreement under this article, without prejudice to Seller's right to terminate this Agreement for cause. Any cost incurred by Seller in accordance with any such suspension (including storage costs) shall be payable by Buyer upon submission of the Seller's invoice(s). File: 651414PROP260413-003.docx Page 23 of 27 Q VEOLIA Performance of the Seller's obligations shall be extended for a period of time reasonably necessary to overcome the effects of such suspension. 16. Governing Law, Dispute Resolution. This Agreement shall be governed by the substantive laws of the State of New York. In the event of a dispute concerning this Agreement, the complaining Party shall notify the other Party in writing thereof. Management level representatives of both Parties shall meet at an agreed location to attempt to resolve the dispute in good faith. Should the dispute not be resolved within thirty (30) days after such notice, the complaining Party shall seek remedies exclusively through arbitration. The seat of arbitration shall be the federal district court in Philadelphia, PA, and the rules of the arbitration will be the Commercial Arbitration Rules of the American Arbitration Association, which are incorporated by reference into this article. Notwithstanding the foregoing, each Party shall have the right to commence an action or proceeding in a court of competent jurisdiction, subject to the terms of this Agreement, in order to seek and obtain a restraining order or injunction to enforce the confidentiality intellectual property provisions set forth in the first two paragraphs of article 13; nuclear use restrictions set forth in article 17, or to seek interim or conservatory measures not involving monetary damages. 17. No Nuclear Use. Equipment and Services sold by Seller are not intended for use in connection with any nuclear facility or activity, the Buyer warrants that it shall not use or permit others to use the Equipment or Services for such purposes, without the advance written consent of Seller. If, in breach of this, any such use occurs, Seller (and its parent, affiliates, suppliers and subcontractors) disclaims all liability for any nuclear or other damage, injury or contamination, and, in addition to any other rights of Seller, Buyer shall indemnify and hold Seller (and its parent, affiliates, suppliers and subcontractors) harmless against all such liability. 18. Export Control. Seller's obligations are conditioned upon Buyer's compliance with all applicable trade control laws and regulations including those of the United States, European Union, and France. Additionally, Buyer shall not sell, distribute, disclose, release or otherwise transfer any item or technical data provided under this Agreement to: (i) any country designated as a "State Sponsor of Terrorism" by the U.S. Department of State including, for this Agreement, the countries of North Korea (ii) any entity located in, or owned by an entity located in, a "State Sponsor of Terrorism" country, North Korea, (iii) the region of Crimea or (iv) any person or entity listed on the "Entity List" or "Denied Persons List", the list of "Specifically Designated Nationals and Blocked Persons" maintained by any other applicable prohibited party list. The Buyer hereby certifies that the work, technical data, software or other information or assistance furnished by the Seller or its Affiliates under this contract will not be used in the design, development, production, stockpiling or use of chemical, biological or nuclear weapons either by the Buyer or by any entity acting on the Buyer's behalf. The obligations of the parties to comply with all applicable trade control laws and regulations shall survive any termination or discharge of any other contract obligations. 19. Changes. Each Party may at any time propose changes in the schedule or scope of Equipment or Services. All changes to the Equipment or Services shall be subject to mutual agreement via a written change order or variation, which shall only become effective once signed by both Parties. The scope, Agreement price, schedule, and other provisions will be equitably adjusted to reflect additional costs or obligations incurred by Seller resulting from a change, after Seller's proposal date, in Buyer's site -specific requirements or procedures, or in industry specifications, codes, standards, applicable laws or regulations. It shall be acceptable and not considered a change if Seller delivers Equipment (including Equipment replacement under warranty) that bears a different, superseding or new part or version number compared to the part or version number listed in the Agreement, provided that in no circumstance shall this affect any other of Seller's obligations including those set forth in article 6. 20. Conflicts; Survival, Assignment. If there is any conflict between this Agreement and any written proposal or quotation provided by Seller, then the terms and conditions set forth in this Agreement shall prevail. If any term or condition of this Agreement or any accompanying terms and conditions are held invalid or illegal, then such terms and conditions shall be reformed to be made legal or valid, or deleted, but the remaining terms and conditions shall remain in full force and effect, and this Agreement shall be interpreted and implemented in a manner which best fulfils Parties' intended agreement. Those provisions which by their nature remain applicable after termination shall survive the termination of this Agreement for any reason. Seller may assign or novate its rights and obligations under the Agreement, in whole or in part, to any of its affiliates or may assign any of its accounts receivable under this Agreement to any party without Buyer's consent, and the Buyer hereby agrees, by signing this Agreement, to such assignment and to execute any document that may be necessary to complete Seller's assignment or novation. This Agreement shall not otherwise be assigned by either Party without the other Party's prior written consent, and any assignment without such consent shall be void. Seller may (i) manufacture and source the Equipment and any part thereof globally in the country or countries of its choosing; and (ii) subcontract portions of the Services, so long as Seller remains responsible for such. 21. No third party beneficiary. Except as specifically set forth in the article entitled "Limitations on Liability" and "No Nuclear Use", this Agreement is not intended to, and does not, give to any person who is not a party to this Agreement any rights to enforce any provisions contained in this Agreement. 22. Entire Agreement. This Agreement embodies the entire agreement between Buyer and Seller and supersedes any previous documents, correspondence or agreements between them. No modification, amendment, revision, waiver, or other change shall be binding on either Party unless agreed in writing by the Party's authorized representative. Any oral or written representation, warranty, course of dealing, or trade usage not specified herein shall not be binding on either Party. Each Party agrees that it has not relied on, or been induced by, any representations of the other Party not contained in this Agreement File: 651414PROP260413-003.docx Page 24 of 27 Q VEOLIA Additional Clauses Insurance. Buyer shall maintain all risk property and boiler and machinery breakdown insurance covering the full replacement value of Buyer's site, systems and related equipment, together with business interruption coverage, which includes a waiver of subrogation in favour of Seller and its affiliates. Prior to commencement of any work under this Agreement, and not less than annually thereafter during the term of this Agreement, Buyer shall deliver to Seller a certificate(s) of insurance and copy of waiver of subrogation endorsement evidencing that the foregoing insurance is in full force and effect. Seller shall maintain types and amounts of insurance against loss or damage and such other risks as customarily insured against by businesses whose operations are comparable to those of the Seller. Seller shall not be obliged to add Buyer or any other third party as an additional insured under Seller's insurance policies. Inspection and Factory Tests. Seller will apply its normal quality control procedures in manufacturing the Equipment. Seller shall attempt to accommodate requests by Buyer to witness Seller's factory tests of Equipment, subject to appropriate access restrictions, if such witnessing can be arranged without delaying the work. ��• Change control. Buyer shall notify Seller immediately upon any change in ownership of more than fifty per cent (50%) of Buyer's voting rights or of any controlling interest in Buyer. If Buyer fails to do so or Seller objects to the change, Seller may (a) terminate the Agreement, (b) require Buyer to provide adequate assurance of performance (including but not limited to payment), and/or (c) put in place special controls regarding Seller's Confidential Information. File: 651414PROP260413-003.docx Page 25 of 27 Q VEOLIA 13 Selling Price Item Description I Price 1 Base Proposal $2,115,000.00 TOTAL Selling Price: $2,115,000.00 (*) Note: No Sales Tax has been included. If required tax will be added to the selling price at the current rate when invoice is submitted. SHIPPING TERMS DAP to jobsite TERMS OF PAYMENT All payments are net 30 days 10% upon shop drawing submittal 80% on shipment of equipment (partial shipments/payments permitted) 10% upon successful commissioning and testing, or one hundred twenty (120) days from shipment of equipment (whichever comes first) VALIDITY Sixty (60) Days BONDING No Performance or Payment Bonds have been included in the above price SERVICE Field Service included in this Contract shall be provided for a period not to exceed (see above) eight -hour man days provided in not more than (see above) trips to check the completed installation by Purchaser, to place the Products in operation and to instruct Purchaser in their operation. Purchaser agrees to pay VEolia for any additional service days and/or trips in accordance with Veolia's standard service rates and conditions in effect at the time the service is performed. A minimum of one (1) full day of service will be charged to each trip. See proposal details SCHEDULE Approval drawings and data shall be submitted approximately (see above) weeks after agreement to all terms, as evidenced by Veolia's receipt of this proposal, fully executed; or, in the event that Purchaser issues a Purchase Order, Veolia's receipt of fully executed letter agreement. Veolia estimates that shipment of the Products can be made in approximately (see above) weeks after Veolia has received from Purchaser final approval of all submittal drawings and data. NOTES Given the current geopolitical uncertainty related to tariffs and trade regulations, Veolia cannot estimate what impact such changes will have on tariff rates, pricing, and the availability of goods in the future. Veolia's proposal, reference 651414, does not yet take into account the impact that the aforementioned situation will have on costs, and as a result Veolia's pricing and supply chain. Although you have Veolia's assurance that we are taking proactive measures to mitigate any impacts caused by tariffs, Veolia does hereby reserve the right to adjust prices and schedule to reflect any impact incurred from tariffs at the time of execution and delivery. File: 651414PROP260413-003.docx Page 26 of 27 Q VEOLIA PURCHASER'S ACCEPTANCE: BY ITS SIGNATURE BELOW OR ISSUANCE OF ANY PURCHASE ORDER OR OTHER DOCUMENT, NOTWITHSTANDING ANY STATEMENT OR PROVISION CONTAINED THEREIN TO THE CONTRARY, PURCHASER AGREES TO ALL THE CONDITIONS AND PROVISIONS OF THIS PROPOSAL AND CONTRACT. NO OFFER BY PURCHASER TO ALTER, AMEND, LIMIT OR DELETE ANY CONDITION OR PROVISION OF THIS PROPOSAL AND CONTRACT SHALL BE BINDING UPON VEOLIA UNLESS EXPRESSLY ACCEPTED IN WRITING BY VEOLIA. PURCHASER'S ACCEPTANCE: SELLER Name Name Vito Ruvo Title Title Technical Sales Lead — Municipal Ozone Company Company Veolia Water Tech Name Name Date: Date: May 29, 2026 Ship To: File: 651414PROP260413-003.docx Page 27 of 27 :R-1 MAIN POWER INCOMING SECTION ] [ rr� ] [ L \ F N15 4.00 v L-- 1 [ H1 A CONTROL CABLES 85.75 MAIN BREAKER OZONE GENERATOR HANDLE CONTROL SECTION Ozonic ©PSU h° / [ k i J I I,. NII II i n i I FAP -1 FAP -2 I 3033 • A ---------------- -T----------------------------- ----- FL1 z I W I U I = Ge Y 0a HHHHH1 I U I D I � 4042 -_._________ ' TB214 ; -C TB215 TB216 L TB217 TB218 - I \� 6 :I A . 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I ........................................................................................................................................................................................................................................................................... ETHERNET PROGRAMMING S OIP PORT MODBUS OZONE GENERATOR NO.3: ........................... !CP..N!k4TsP-7....: .i........I ....._....__........._..................................................................................... ......'........i......................................................................................................................... FOP ICI 1 1 1 1 1 I II I I ' NH -RIO -OZ -2 i • SH-RIO-OZ-4 I I� I NH-RIO-OZ�i � SN-IHO-OZ-S NORTH OZONE CONTACTORS AND, II DESTRUCT UNITS REMOTE I/O PANEL NH-LCP-C-9B (RIO 021) ' ...............................................................................»......................................................................::................................................................................... — peck �x hi�o�'•. SOUTH OZONE CONTACTORS AND DESTRUCT UNITS REMOTE I/O ,....,..._.,_ PANEI S14-LCP-C-TOO (RIO 022): ............................................. Mods rFl ORS IN K ♦���',�CJJJJJJG' �i PLOTR LOBS ICADLA16.0 EXCEPT 253 SCALE: NTS PLOT: 1= 2.15 1 of 3 7.2.1 VEOLIA WATER TECHNOLOGIES SOLE SOURCE PURCHASE AGREEMENT FOR HOLLY WATER TREATMENT PLANT MAYOR AND COUNCIL COMMUNICATION 7.2.1 VEOLIA WATER TECHNOLOGIES SOLE SOURCE PURCHASE AGREEMENT FOR HOLLY WATER TREATMENT PLANT DATE:08/25/26 M&C FILE NUMBER:M&C 26-0751 DEPARTMENT:WATER SUBJECT (ALL) Authorize Execution of Sole Source Agreement with Veolia Water Technologies Treatment Solutions USA Inc., for Power Supply Unit(s), Master Ozone Control Panel(s), Services and Parts for Ozone Generators for the Water Department in an Annual Amount Up to $2,115,000.00 for the First Year and Authorize Four One-Year Renewal Options for the Same Amount, and Adopt Appropriation Ordinance to Effect a Portion of Water’s Contribution to the Fiscal Years 2026-2030 Capital Improvement Program RECOMMENDATION It is recommended that the City Council: 1. Authorize execution of sole source agreement with Veolia Water Technologies Treatment Solutions USA Inc., for power supply unit(s), master ozone control panel(s), services and parts for ozone generators for the Water Department in an annual amount up to $2,115,000.00 for the first year and authorize four one-year renewal options for the same amount; and 2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Water and Sewer Capital Projects Fund in the amount of $2,115,000.00, transferred from available PayGo funds within the Water and Sewer Fund, for the purpose of funding the Water & Sewer Outlay programmable project (City Project No. P00087) to fund the purchase of power supply unit(s), master ozone control panel(s), services and parts for ozone generators within the Holly Water Treatment Plant Replacement 3 PSU & Controls project (City Project No. 107119) and to effect a portion of Water’s contribution to the Fiscal Years 2026-2030 Capital Improvement Program. DISCUSSION The purpose of this Mayor and Council Communication (M&C) is to authorize execution of a sole source agreement with Veolia Water Technologies Treatment Solutions USA Inc., for power supply unit(s), master ozone control panel(s), services and parts for ozone generators 2 of 3 for the Water Department in an annual amount up to $2,115,000.00 for the first year and authorize four one-year renewal options for the same amount. The Water Department (Department) will use this agreement to purchase and replace power supply unit(s), master ozone control panel(s) and parts, along with repair services as needed for the ozone generators located at the City's Holly Water Treatment Plant (Holly). Non-OEM power supply units, master ozone control panels and parts are not compatible with the current ozone generators at Holly. The power supply units are proprietary, manufactured and serviced only by Veolia Water Technologies Treatment Solutions USA Inc., and the technicians are the only personnel trained and authorized to inspect, service, and repair the generators. This extends to the parts manufactured by Veolia Water Technologies Treatment Solutions USA Inc., as these parts are required to maintain the functionality of the generators. All manufactured parts must be sourced through Veolia Water Technologies Treatment Solutions USA Inc. Veolia Water Technologies Treatment Solutions USA Inc., is also the documented sole source dealer for the Texas region and the only company that can work on the generators without voiding the warranties. It is the practice of the Water Department to appropriate its Capital Improvement Plan (CIP) program throughout the Fiscal Year, instead of within the annual budget ordinance, as projects commence, additional funding needs are identified, and to comply with bond covenants. Funding is budgeted in the Transfer to Water/Sewer account of the Water and Sewer operating budget for the purpose of funding the Holly WTP Repl 3 PSU&Controls project (City Project No. 107119). Appropriations for the Holly WTP Repl 3 PSU&Controls project are as depicted below: Fund Existing Appropriations Additional Appropriations Project Total* W&S Capital Projects Fund 56002 $0.00 $2,115,000.00 $2,115,000.00 Project Total $0.00 $2,115,000.00 $2,115,000.00 EXEMPT PROCUREMENT: The City Attorney's Office has determined that this sole source is exempt from competitive bidding under the provisions of Chapter 252 of the Texas Local 3 of 3 Government Code due to the unique services provided by and only available from this vendor. ADMINISTRATIVE CHANGE ORDER: An administrative change order or increase may be made by the City Manager up to the amount allowed by relevant law and Fort Worth City Code and does not require specific City Council approval as long as sufficient funds have been appropriated. AGREEMENT TERMS: Upon City Council approval, this agreement shall begin upon execution and expires one year later. RENEWAL OPTIONS: The agreement may be renewed for four (4) additional one-year periods. This action does not require specific City Council approval provided that the City Council has appropriated sufficient funds to satisfy the City's obligations during the renewal term. This agreement serves ALL COUNCIL DISTRICTS. This contract requires a Form 1295. FISCAL INFORMATION/CERTIFICATION The Director of Finance certifies that funds are currently available in the Water & Sewer Fund and upon approval of the above recommendations and adoption of the attached appropriation ordinance, funds will be available in the current capital budget, as appropriated, in the W&S Capital Projects Fund for the Holly WTP Repl 3 PSU&Controls project. Prior to an expense being incurred, the Water Department has the responsibility to validate the availability of funds. SUBMITTED FOR CITY MANAGER'S OFFICE BY:Jesica L. McEachern, # 5804 ORIGINATING BUSINESS UNIT HEAD:Chris Harder, #5020 ADDITIONAL INFORMATION CONTACT:Chris Harder #5020 ATTACHMENTS 1. Ordinance Appropriation (R2) - Veolia Water Technologies Purchase [7.2.1.2 - 1 page] 2. Chapter 252 Exemption [7.2.1.3 - 54 pages]