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Home My WebLink AboutPR 19430: FINAL YEAR CONTRACT FOR PURCHASE OF WATER TREATMENT CHEMICALS FOR THE UTILITY OPERATIONS DEPARTMENT City of - ` I P.R. No. 19430 07/05/16 ds/jj 4liort rthu�r Texas INTEROFFICE MEMORANDUM UTILITY OPERATIONS DEPARTMENT-ADMINISTRATION Date: July 5, 2016 To: Brian McDougal, City Manager From: Jimmie Johnson, Ph.D.,Assistant City Manager RE: Proposed Resolution No. 19430 Nature of the Request: The Utility Operations Department routinely utilizes various Water Treatment Chemicals to treat drinking water and wastewater at our various treatment facilities throughout the City. We recommend that these contracts be renewed for one (1) more year. Contracts were approved originally by Resolution No. 15-215. Contract for the purchase of Water Treatment Chemicals with Brenntag Southwest,Inc., DXI Industries, Inc., and Therchem Corp. in the total estimated annual amounts are shown below. C12-ton cyl. Cl2 1504 cyl. 50%NaOH Ammonia Phosphates Bidder 325 tons 7.5 tons 145 tons 50 tons 67.5 tons TDC,LLC. no bid no bid $115.00 no bid no bid TDC disqualified Res. 15-369 Ruston,LA Brenntag SW $549.00 $.766711b $387.00 no bid $.3797/Ib Houston,TX DXI Ind. $625.00 $.60/Ib $426.28 no bid no bid Houston,TX Therchem no bid no bid no bid $.69/Ib no bid New Iberia,LA Est.Ann.Total $178,425 $9,000 $56,115 $69,000 $51,259.50 2016 Grand Total: $363,799.50 Staff Analysis, Considerations: Trained and TCEQ-certified employees administer all water and wastewater treatment chemicals. Recommendation: I recommend that the City Council approve Proposed Resolution No. 19430 authorizing the renewal of the contracts for the purchase of Water Treatment Chemicals with Brenntag Southwest, Inc., DXI Industries,Inc., and Therchem Corp. for the same unit prices currently paid, with the projected budgetary impact of$363,799.50. Budget Considerations: These chemicals are purchased on an as-needed basis and are charged to the Water Purification and Wastewater Treatment Division O&M Budget Account Nos. 410-1252-532.29-02 and 410-1256-532.29-00.`i P.R.No. 19430 07/05/16 ds/jj RESOLUTION NO. A RESOLUTION AUTHORIZING THE SECOND AND FINAL YEAR CONTRACTS FOR THE PURCHASE OF WATER TREATMENT CHEMICALS FOR THE UTILITY OPERATIONS DEPARTMENT WITH BRENNTAG SOUTHWEST, INC., DXI INDUSTRIES, INC. AND THERCHEM CORPORATION FOR THE SAME UNIT PRICES CURRENTLY PAID. FUNDS ARE AVAILABLE IN WATER PURIFICATION AND WASTEWATER DIVISION O&M BUDGET ACCOUNT NOS. 410-1252-532.29-02'& 410-1256-532.29-00.4 WHEREAS, the Utility Operations Department routinely utilizes various Water Treatment Chemicals to treat drinking water and wastewater at our various treatment facilities throughout the City; and, WHEREAS, the Purchasing Division solicited bids for such Water Treatment Chemicals, as delineated in our Purchasing Policy, and seventeen(17) vendors submitted bids on May 06, 2015; and, WHEREAS, those bids were evaluated by Utility Operations and Purchasing and awarded to the low bidders for each chemical by City Council on June 9, 2015, by Resolution No. 15-215; and, WHEREAS, staff is recommending exercising the option to renew the contracts for the second and final year. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: THAT, the City Manager of the City of Port Arthur is hereby authorized and directed to execute, on behalf of the City of Port Arthur, the second and final year contracts between the City of Port Arthur and Brenntag Southwest, Inc., DXI Industries Inc., and Therchem Corporation, for the same unit prices currently paid in substantially the same form as attached as Exhibits "A", "B", and "C"; and, P.R. No. 19430 07/05/16 ds/jj Page 2 of 3 THAT, the City can terminate any of these contracts at its convenience with ten days written notice; and, THAT, funding for these chemicals is provided in the Utility Operations O&M budget; and, THAT, a copy of the caption of this resolution be spread upon the minutes of the City Council. READ, ADOPTED AND APPROVED THIS day of 2016 at a Regular Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor Councilmembers: NOES: Derrick Freeman Mayor ATTEST: APPROVED FOR ADMINISTRATION: Sherri Bellard Brian McDougal City Secretary City Manager APPROVED AS TO FORM: \fal614r&\) ))1144;4‘k— Valecia Ti en Clifton Williams, CPPB City Attorney Acting Purchasing Manager P.R. No. 19430 07/05/16 ds/jj Page 3 of 3 Dr. Jimmie Johnson, PhD Assistant City Manager APPROVED AS TO AVAILABILITY OF FUNDS: W r Jerry Dale, CPA, CGFO S'1\g\lb Director of Finance Account No. 410-1252-532.29-02 410-1256-532.29-00 P.R. No. 19430 07/05/16 Exhibit "A" PURCHASING CONTRACT AGREEMENT (Brenntag Southwest, Inc.) P.R. No. 19430 07/05/16 SECOND AND FINAL YEAR PURCHASING CONTRACT FOR WATER TREATMENT CHEMICALS THIS AGREEMENT is made this the of , 2016, by and between an individual, firm partnership or corporation, BRENNTAG SOUTHWEST, INC., of Houston, Texas, hereinafter called "Vendor", and the City of Port Arthur, a municipal corporation organized under the laws of the State of Texas, hereinafter called the "Owner" or "City". WITNESSETH: That for and in consideration of the payments, terms, conditions and agreements set forth herein, Owner and Vendor agree as follows: 1. Pursuant to Resolution 15-215, the City entered into a one-year contract with the option of renewal for one (1) additional year. The parties hereby agree to exercise said option for a second and final year. 2. The Vendor will provide 50% Sodium Hydroxide, Liquid Chlorine in 1-ton cylinders, and Phosphate, as delineated and submitted in their bid on May 06, 2015. 3. During the term of this Contract, the Vendor will furnish all of the materials and supplies, as stated in the advertised bid specifications, described as: Water Treatment Chemicals 4. The Vendor agrees to deliver all materials on an as-needed basis during the term of this contract, in a not-to-exceed maximum amount of $285,799.50 (145 tons A $387.00/ton = $56,115.00) for 50% NaOH, (325 tons (c $549.00/ton = $178,425.00) for Liquid Chlorine in 1-ton Cylinders, (67.5 tons (& $759.40/ton = $51,259.50) for Phosphate as shown in the Bid schedule. 5. The term "Contract Documents" means and includes the following: (A)Agreement {B)Specifications * (C)General Information * {D)Bid * (E)Addendum * (F) Notice to Proceed *These items were attached to the original letting contract. The agreement only is included for this renewal. P.R. No. 19430 07/05/16 6. This Agreement shall be binding upon all parties hereto and their respective heirs, executors, administrators, successors and assigns. IN WITNESS WHEREOF, the parties hereto have executed, or caused to be executed by their duly authorized officials, this Agreement in two (2) copies each of which shall be deemed an original on the date first above written. SIGNED AND AGREED to on the day of , 2016. WITNESS: CONTRACTOR: Brenntag Southwest, Inc. SIGNED AND AGREED to on the day of , 2016. WITNESS: CITY OF PORT ARTHUR: City Secretary City Manager P.R. No. 19430 07/05/16 Exhibit "B" PURCHASING CONTRACT AGREEMENT (DXI Industries, Inc.) P.R. No. 19430 07/05/16 SECOND AND FINAL YEAR PURCHASING CONTRACT FOR WATER TREATMENT CHEMICALS THIS AGREEMENT is made this the of 2016, by and between an individual, firm partnership or corporation, DXI industries, Inc. of Channelview, Texas, hereinafter called "Vendor", and the City of Port Arthur, a municipal corporation organized under the laws of the State of Texas, hereinafter called the "Owner" or "City". WITNESSETH: That for and in consideration of the payments, terms, conditions and agreements set forth herein, Owner and Vendor agree as follows: 1. Pursuant to Resolution 15-215, the City entered into a one-year contract with the option of renewal for one (1) additional year. The parties hereby agree to exercise said option for a second and final year. 2. The Vendor will provide Liquid Chlorine 150 pound cylinders, as delineated and submitted in their bid on May 06, 2015. 3. During the term of this Contract, the Vendor will furnish all of the materials and supplies, as stated in the advertised bid specifications, described as: Water Treatment Chemicals 4. The Vendor agrees to deliver all materials on an as-needed basis during the term of this contract, in a not-to-exceed maximum amount of $9,000.00 (7.5 tons A $1,200.00/ton) for Liquid Chlorine 150 pound cylinders as shown in the Bid schedule. 5. The term "Contract Documents" means and includes the following: (A)Agreement (B)Specifications * (C)General Information * (D)Bid * (E)Addendum * (F) Notice to Proceed 6. This Agreement shall be binding upon all parties hereto and their respective heirs, executors, administrators, successors and assigns. *These items were attached to the original letting contract. The agreement only is included for this renewal. P.R. No. 19430 07/05/16 IN WITNESS WHEREOF, the parties hereto have executed, or caused to be executed by their duly authorized officials, this Agreement in two (2) copies each of which shall be deemed an original on the date first above written. SIGNED AND AGREED to on the day of , 2016. WITNESS: CONTRACTOR: DXI Industries Inc. SIGNED AND AGREED to on the day of , 2016. WITNESS: CITY OF PORT ARTHUR: City Secretary City Manager P.R. No. 19430 07/05/16 Exhibit "C" PURCHASING CONTRACT AGREEMENT (Therchem Corporation) P.R. No. 19430 07/05/16 SECOND AND FINAL YEAR PURCHASING CONTRACT FOR WATER TREATMENT CHEMICALS THIS AGREEMENT is made this the of , 2016, by and between an individual, firm partnership or corporation, Therchem Corporation, of New Iberia, Louisiana, hereinafter called "Vendor", and the City of Port Arthur, a municipal corporation organized under the laws of the State of Texas, hereinafter called the "Owner" or "City". WITNESSETH: That for and in consideration of the payments, terms, conditions and agreements set forth herein, Owner and Vendor agree as follows: 1. Pursuant to Resolution 15-215, the City entered into a one-year contract with the option of renewal for one (1) additional year. The parties hereby agree to exercise said option for a second and final year. 2. The Vendor will provide Anhydrous Ammonia, as delineated and submitted in their bid on May 06, 2015. 3. During the term of this Contract, the Vendor will furnish all of the materials and supplies, as stated in the advertised bid specifications, described as: Water Treatment Chemicals 4. The Vendor agrees to deliver all materials on an as-needed basis during the term of this contract, in a not-to-exceed maximum amount of $69,000.00 (50 tons $1,380.00/ton) for Anhydrous Ammonia as shown in the Bid schedule. 5. The term "Contract Documents" means and includes the following: (A)Agreement (B)Specifications * (C)General Information * (D)Bid * (E)Addendum * (F) Notice to Proceed 6. This Agreement shall be binding upon all parties hereto and their respective heirs, executors, administrators, successors and assigns. *These items were attached to the original letting contract. The agreement only is included for this renewal. P.R. No. 19430 07/05/16 IN WITNESS WHEREOF, the parties hereto have executed, or caused to be executed by their duly authorized officials, this Agreement in two (2) copies each of which shall be deemed an original on the date first above written. SIGNED AND AGREED to on the day of , 2016. WITNESS: CONTRACTOR: Therchem Corporation SIGNED AND AGREED to on the day of , 2016. WITNESS: CITY OF PORT ARTHUR: City Secretary City Manager