The URL can be used to link to this page

Home My WebLink AboutPR 19759: UNIT PRICE INCREASE, CONTRACT WITH BRENNTAG SOUTHWEST, FOR PURCHASE OF LIQUID CHLORINE Energy - � City of C:t /1 \ a ort rthur INTEROFFICE MEMORANDUM UTILITY OPERATIONS DEPARTMENT - ADMIN. DIV. Date: May 16, 2017 To: Brian McDougal, City Manager From: Jimmie Johnson, Ph.D.,Assistant City Manager RE: Proposed Resolution No. 19759 Nature of the Request: The City awarded the bid for 1 ton cylinders on Liquid Chlorine to Brenntag for one year with the option to renew for two additional one year periods on Resolution 15-215. Council renewed the contract on Resolution 16-191. Brenntag Southwest notified Utility Operations there would be a $25/ton price increase as of March 1, 2017. Our total estimated Chlorine usage at our various facilities is 96 tons for the period of March 1, 2017 thru July 31, 2017. StaffAnalysis, Considerations: The contract stated all chemical prices shall be firm for 90 days. Thirty (30) days prior written notice must be submitted, along with market justification, for any price changes during the life of the contract. The vendor is required to submit a letter from their supplier to the City of Port Arthur showing any increase or decrease in price to the vendor by their supplier from the previous month. Officers of each company must sign this letter. Recommendation: We recommend that the Council approve the price increase for Liquid Chlorine. Budget Considerations: The current contract with Brenntag Southwest ends July 31, 2017. The contract amount will increase from $178,425.00 to $180,825.00. Liquid Chlorine is purchased on an as-needed basis and is charged to the Water Purification Division O&M Budget account No. 410-1252-532.29- 02, and the Wastewater Treatment Division O&M Budget account No. 410-1256-532.29-00. P. R. No. 19759 05/15/17 ds Page 1 of 2 RESOLUTION NO. A RESOLUTION AUTHORIZING A UNIT PRICE INCREASE TO THE CONTRACT FOR BRENNTAG SOUTHWEST FOR THE PURCHASE OF LIQUID CHLORINE IN THE AMOUNT OF $25.00 PER TON FOR THE UTILITY OPERATIONS DEPARTMENT. FUNDS ARE AVAILABLE IN THE WATER PURFICATION DIVISION O&M BUDGET ACCOUNT NO. 410-1252-532.29-02, AND IN THE WASTEWATER TREATMENT DIVISION O&M BUDGET ACCOUNT NO. 410-1256-532.29-00. WHEREAS, the Utility Operations Department routinely utilizes Liquid Chlorine to treat drinking water at our Water Purification Plant and at our Wastewater Treatment Plants; and, WHEREAS, on June 9, 2015, the City Council, by Resolution No. 15-21, awarded the contract Liquid Chlorine (one ton cylinders), to Brenntag Southwest; and, WHEREAS, on November 1, 2016, the City Council, by Resolution No. 16-191. renewed the contract Liquid Chlorine (one ton cylinders), to Brenntag Southwest; and, WHEREAS,the contract allows a price increase after 90 days; and, WHEREAS, the cost to produce Liquid Chlorine has increased by $25.00 per ton (EXHIBIT A); now therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: THAT,the City Council authorizes the $25.00 per ton increase for Liquid Chlorine to the contract, which will increase the annual amount from $178,425 to an estimated $180,825; and, THAT, funding for these chemicals is provided for 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. P. R. No. 19759 05/15/17 ds Page 2 of 2 READ, ADOPTED, AND APPROVED THIS day of , 2017, 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 ADM , RATION: —AI Sherri Bellard Brian Mc t ougal , City Secretary City Manaer APPROVED AS TO FORM: alecia Ti no Jimmie Johnson, Ph.D. City Attorney Assistant City Manager APPROVED AS TO AVAILABILITY OF FUNDS: kts,,,:... .\„,A,— vUdi-AL Rosie Vela Clifto Williams Interim Director of Finance Acting Purchasing Manager Exhibit "A" (Brenntag Southwest notice of price increase,along with supporting statements from various producers) TM usmas US Magnesium LLC 238 North 2200 West Salt Lake City, UT 84116-2921 801-532-2043; 800-262-9624; FACSIMILE 801-534-1407 February 26, 2016 Subject: Liquid Chlorine Price Announcement Dear Customer, Effective immediately, or as contracts permit, US Magnesium's price for liquid chlorine will be increased by$30/short ton. A US Magnesium sales representative will be in touch with you to discuss this announcement. We certainly appreciate the opportunity to supply your chlorine requirements and thank you for your business. Sincerely, A (.14444 Susan Slade Vice President, Marketing US Magnesium LLC BRENNTAGalliConnectingChemistry February 17, 2017 Re: Chlorine Price Increase Dear Valued Customer, Brenntag Southwest is announcing a $25.00 per ton increase for all package sizes of Chlorine. This price increase is effective March 19, 2017, or as contract terms allow. Increased chlorine values into the chlorine derivatives markets are driving the need for this price increase. Thank you for your attention to this, and should you have any questions regarding this price change, please contact your Brenntag Southwest sales professional. Brenntag Southwest values your business and appreciates the confidence you have placed in us as your supplier. Sincerely, Brenntag Southwest Donny P. Clark Director, Chlor-Alkali a Axiall Corporation X 11 Stanwix Street,Suite 1900 Pittsburgh,PA 15222 ' Alana R.Zajdel aBusiness Manager,Chlorine&Analytics I I Paul Kowalski Product Manager,Caustic Soda February 24, 2016 Subject: Chlorine and Liquid Caustic Soda Price Increase Bulletin #3418 Dear Customer: Effective immediately, or when permissible by contract, Axiall is announcing an off-list price increase for chlorine and liquid caustic soda (sold independently or as part of an ECU). The price for chlorine will increase by $US 30 per short ton in the US and $Cdn 45 per metric ton in Canada. The price for all grades of liquid caustic soda will increase by $US 75 per dry short ton in the US and $Cdn 115 per dry metric ton in Canada. This price increase is necessitated by unacceptable ECU margins which are currently below reinvestment economics, increases in logistics costs including fleet maintenance, and the anticipated tightening of supply caused by planned turnarounds as well as expected structural shifts in industry ECU capacity and pipeline chlorine demand. If you have any questions regarding this price change, please contact your local Axiall sales professional. Axiall values the opportunity to supply your Chlorine and Liquid Caustic Soda requirements, and will strive to earn your business every day. Sincerely, ofyly dZ eses i Alana R. Zajdel Paul Kowalski vl�n TM CHLOR ALKALI 490 Stuart Road, NE,Cleveland,Tennessee 37312 Phone:423/336-4850•Fax:423/336-4830 PRODUCTS AND VINYLS Internet Address: www.olinchloralkali.com February 15,2017 Dear Customer: Effective immediately,or as contract terms permit,Olin Chlor Alkali Products and Vinyls is increasing the price of chlorine by$25.00 per ton in the U.S. and by CAD $35.00 per metric ton in Canada,including chlorine sold as a component of an ECU. Your account manager will be in contact with you to answer any questions you may have regarding this price announcement. Thank you for your business. We appreciate the confidence you have placed in Olin as your supplier. Sincerely, Y de+j-j Wesley Smith Marketing Director—Chlorine and Derivatives Olin Chlor Alkali Products and Vinyls • SPECIFICATIONS FOR WATER TREATMENT CHEMICALS FOR THE CITY OF PORT ARTHUR UTILITY OPERATIONS DEPARTMENT GENERAL INFORMATION All chemicals specified herein shall conform to Standard 60 of the American United Laboratory National Standards Institute/National Sanitation Foundation/Underwriter's Laboratory (ANSI/NSF/UL). Conformance with this Standard must be certified by an agency recognized by the TCEQ. Each bidder shall provide such certification to the City, with their bid, along with a current Material Safety Data Sheet (MSDS) for any chemicals supplied per these specifications. All bids are to be F.O.B. at the specified City delivery location in Port Arthur, Texas. The delivery points will include the Water Purification Plant at 1101 H.O. Mills Blvd., Main WWTP at 6300 Procter St. Ext., and the Port Acres WWTP at 2901 W. Hwy. 365, and will be specified on the order. The WWTP's will only receive shipments of liquid chlorine. The City of Port Arthur will not accept demurral charges or freight bills. Shippers shall notify the appropriate City personnel prior to unloading any of the above-mentioned items. Successful bidder, or bidders, must agree to enter into a contract with the City of Port Arthur. The life of the contract is to be approximately one (1) year, with the option to extend the contract for two (2) additional one year periods. Shipments are to be made as needed. No price increases will be allowed for the first ninety (90) days during life of the contracts. The estimated quantities stated below are supplied as a basis for bidding purposes only. These quantities were estimated from past experience, and do not obligate the City to purchase these exact amounts All chemical prices shall be firm for 90 days. Thirty (30) days prior written notice must be submitted, along with market justification, for any price changes during the life of the contract. The vendor is required to submit a letter from their supplier to the City of Port Arthur showing any increase or decrease in price to the vendor by their supplier from the previous month. Officers of each company must sign this letter. If there is a price decrease to the vendor by their supplier the City will be Riven an equal decrease. The City reserves the right to cancel this contract with fifteen (15) days prior written notice. The City reserves the right to reject any or all bids, and to waive informalities. The City reserves the right to award all items to one responsible bidder, or to award by item. TECHNICAL SPECIFICATIONS Item No. 1 50% (by weight) Sodium Hydroxide—145 dry tons(estimated) Solution should contain approximately 6.4 lbs. of dry sodium hydroxide per gallon. It should contain nothing injurious to the health of consumers of water treated. It shall be free of any foreign material that may cause excessive clogging of strainer or flow control valve. Shipments shall be made in 4,000 to 4,500 gallon loads as ordered, by tank truck. Supplier shall be prepared to deliver under the following conditions. Water Plant storage connection consists of 2" PVC pipe with a 2" stainless steel female quick coupling. Static lift required is 20 feet, and must be blown off with transporter's compressor. The sodium hydroxide to be supplied shall conform to the American Water Works Association Standard B501-75, or the latest revision of this standard. The manufacturer or vendor shall provide an affidavit(signed by an officer of the company)acknowledging that the sodium hydroxide furnished, according to the City of Port Arthur's order, complies with all applicable requirements of AWWA Standards. Page 4 of 14 Item No.2 25% (by weight) Sodium Hydroxide- 72 dry tons (estimated) Same conditions as Item No.1,except solution should contain 3.2 lbs of dry Sodium Hydroxide per gallon. Item No.3 100%Liquid Chlorine-325 tons(estimated)in one-ton containers Shipments shall be made in lots of nine tons. Shipments are to be by truck and are to be unloaded and drums placed in position on City racks, by successful bidder. Liquid Chlorine shall conform to the latest revision of AWWA Standard B301. All ton cylinders shall be equipped with new or newly reconditioned valves meeting the Chlorine Institute standard for new valves. All newly reconditioned valves shall be reconditioned according to the Chlorine Institute's latest publication. It shall be the sole responsibility of the successful bidder to immediately remove any ton cylinder failing to meet any requirements of these specifications. The manufacturer or vendor shall provide an affidavit(signed by an officer of the company)acknowledging that the Liquid Chlorine to be furnished complies with all applicable requirements of AWWA Standards. Item No. 4 100%Liquid Chlorine-36,000 lbs. (estimated) in 150 lb. cylinders Same condition as above Item No. 3, except shipments shall be in 20 cylinder lots, and shall be unloaded by successful bidder. Item No.5 99.995% (by weight)Anhydrous Ammonia-80,000 pounds(estimated) Ammonia shall be refrigeration (R) grade, and shall contain nothing injurious to the health of consumers of water treated. It shall be free of any foreign material that may,cause excessive clogging of strainers or flow regulating devices. The City has it's own 1,460 gallon tank. Successful bidder, or bidders, must agree to enter into a contract with the City of Port Arthur. The life of the contract is to be approximately one (1)year. Prices shall be firm for the life of the contract. The City reserves the right to cancel this contract with(5)days prior written notice. Item No. 6 23-25% (available fluoride)Hydrofluosilicic Acid - 190,000 lbs.(estimated) Hydrofluorsilicic Acid shall be supplied by tank truck in 4,000 gallon loads, as ordered. Water Plant storage connections consist of 2" PVC pipe with a 2" stainless steel female quick coupling. Static lift required is 17 feet. Hydrofluosilicic Acid shall conform to AWWA Standard B703-89 or latest revision. The manufacturer or vendor shall provide an affidavit signed by an officer of the company acknowledging that the Hydrofluosilicic Acid furnished complies with all applicable requirements of AWWA Standards. Item No. 7 Phosphates-135,000 lbs(estimated) Vendor shall furnish an estimated 135,000 pounds of a 50/50 ortho/polyphosphate blend, with 36-40% total phosphate. Each bidder shall provide,with their bid, certification that their product meets these requirements. Successful bidder must provide water quality analysis to monitor and verify performance of their product during the life of the contract as follows: 1. Two (2) lead samples and two (2) copper samples may be required for the vendor to collect and analyze each month. Testing method must be one approved by the TCEO and the EPA. This is to monitor the distribution system if any discrepancies arise. 2. This treatment system is currently in compliance and the successful bidder must keep the system in compliance or this contract will be terminated. Page 5 of 14 CITY OFPORT ARTHUR. TEXAS BID SHEET BID FOR: Water Treatment Chemicals for Utility Operations BID DUE DATE: May 6,2015 ITEM# QUANTITY_ UOM DESCRIPTION UNIT COST 1 145 DRY TONS 50%SODIUM HYDROXIDE $ 387.00/Dry Ton 2 72 DRY TONS 25%SODIUM HYDROXIDE $ 486.00/Dry Ton 3 325 TONS LIQUID CHLORINE(TON CYL.) $ 549.00/Ton 4 15,000 LBS LIQUID CHLORINE(150LB CYL.) $ 0.7667/lb 5 100,000 LBS ANHYDROUS AMMOINIA $ NO BID 6 190,000 LBS HYDROFLUOSILICIC ACID $ NO BID 7 135,000 LBS PHOSPHATE $ 0.3797/lb Delivery will be made 2-4 Days after Receipt of Order. Brenntag Southwest, Inc. 1632 Haden Road COMPANY NAME STREET ADDRESS 7 1 L.t (11.M, NOT APPLICABLE SIGNA URE OF BIDDER P.O. BOX Gayle Tullier Houston Texas 77015 PRINT OR TYPE NAME CITY STATE ZIP Senior Contract Administrator (713) 330-8570 TITLE AREA CODE TELEPHONE NO gtollefsen@brenntag.com (713)450-4699 EMAIL FAX NO. Page 6 of I4 NON-COLLUSION AFFIDAVIT CITY OF PORT ART!IUR Houston § STATE OF TEXAS By the signature below, the signatory for the bidder certifies that neither he nor the firm, corporation, partnership or institution represented by the signatory or anyone acting for the firm bidding this project has violated the antitrust laws of this State, codified at Section 15.01, et seq., Texas Business and Commerce Code, or the Federal antitrust laws, nor communicated directly or indirectly the bid made to any competitor or any other person engaged in the same line of business, nor has the signatory or anyone acting for the firm, corporation or institution submitting a bid committed any other act of collusion related to the development and submission of this bid proposal. Signature: fi l sl q Printed Name: Gayle Tull;er Title: Senior Contract Administrator Company: Brenntaq Southwest. inc. Date: May 4, 2015 SUBSCRIBED and sworn to before me the undersigned authority by May the 4th of, 2015 on behalf of said bidder. 1 Notary Public iit'and for the State of Texas • tiotare4AstwMy commission expires: May 27, 2015 Lt Page 7 of 14 slink& 4010,* AFFIDAVIT All pages in Offeror's Responses containing statements, letters, etc.,shall be signed by a duly authorized officer of the company whose signature is binding. The undersigned offers and agrees to one of the following: X I hereby certify that I do not have outstanding debts with the City of Port Arthur. I further agree to pay succeeding debts as they become due. 1 hereby certify that I do have outstanding debts with the City of Port Arthur and agree to pay said debts prior to execution of this agreement. 1 further agree to pay succeeding debts as they become due. I hereby certify that i do have outstanding debts with the City of Port Arthur and agree to enter into an agreement for the payment of said debts. I further agree to pay succeeding debts as they become due. Brenntaq Southwest. Inc May 4, 2015 Firm dame Date 7l Senior Contract Administrator Authorized Signature Title Gayle Tullier (713)330-8570 Name (please print) Telephone gtoilefsen@brenntag.com Email STATE: Texas COUNTY: Harris SUBSCRIBED AND SWORN to before me by the above named Gayle Tallier on this the 4th day of May ,20.15 .WOtJRF i?wY L.liAC E } t a Notary Public STAIE OF TEX ti,b Nota Public _ Cnttin.Ex.. 27.2Yi RETURN THIS AFFIDAVIT AS PART OF THE BID PROPOSAL Page 8 of 14 CONFLICT OF INTEREST QUESTIONNAIRE FORM CIQ For Vendor or other person doing business with local governmental entity This questionnaire reflects changes made to the law by 1-LB. 1491,80th Leg.,Regular Session. This questionnaire is being filed in accordance with Chapter 176,Local Government Code by a person who has a business relationship as defined by Section 176.001 (I-a)with a local governmental entity and the person meets requirements under Section 176.006(a). By law this questionnaire must be filed with the records administrator of the local governmental entity not later than the 7"business day after the date the person becomes aware of facts that require the statement to be filed.See Section 176.006,Local Government Code. A person commits an offense if the person knowingly violates Section 176.006,Local Government Code. An offense under this section is a Class C misdemeanor. 1.Name of person who has a business relationship with local governmental entity. Brenntag Southwest, Inc. 2. Check this box if you are filing an update to a previously filed questionnaire. X (The law requires that you file an updated completed questionnaire with the appropriate filing authority not later than 7'business day after the date the originally filed questionnaire becomes incomplete or inaccurate.) 3.Name of a local government officer with whom filer has employment or business relationship. NONE Name of Officer This section(item 3 including subparts A.B.C.&D)must be completed for each officer with whom the filer has an employment or other business relationship as defined by Section 176.001 (1-a),Local Government Code.Attach additional pages to this Form CIO, as necessary. A. Is the local government officer named in this section receiving or likely to receive taxable income,other Than investment income, from the filer of the questionnaire? Yes X No B. Is the filer of the questionnaire receiving or likely to receive taxable income,other than investment income,from or at the direction of the local government officer named in this section AND the taxable income is not received from the local governmental entity? Yes X No C. Is the filer of this questionnaire employed by a corporation or other business entity with respect to which the local government Officer serves as an officer or director,or holds an ownership of 10 percent or more? Yes X No D. Describe each employment or business relationship with the local government officer named in this section. NONE 4. 1 A 1 May 4, 2015 Sig,natur- of person doing business with the governmental entity Date Page 9 of 14