HomeMy WebLinkAboutPR 19871: SODIUM HYDROXIDE CHEMICAL BLANKET ORDER INCREASE City of
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INTEROFFICE MEMORANDUM
Date: August 1, 2017
To: The Honorable Mayor and City Council
Through: Brian McDougal, City Manager
From: Dr. Jimmie Johnson, Director of Utilities Operations
RE: PR 19871 —Sodium Hydroxide Chemical Blanket Order Increase
Introduction:
The intent of this Agenda Item is to seek the City Council's approval for the City Manager to
increase the existing blanket 204159 to a total of$61,085.51.
Background:
City Council awarded Resolution No. 15-215, which the City entered into a one year contract
for the purpose of providing 50% Sodium Hydroxide Chemical for the Water Plant in the not
to exceed amount was $56,115. The contract had an option to renew for one (1) additional one-
year period.
The City renewed the contract with Resolution 16-191 with had the same not to exceed amount
of$56,115. The contract had the option to increase the unit cost base on the market, and
Brenntag Southwest increased the contract unit cost from $387 to $527 which increased to
Blanket Order to $62,085.51.
Budget Impact:
Utility Operations will charge the additional amount to Water Purification Treatment
Chemicals Account#410-1252-532.29-02.
Recommendation:
It is recommended that City Council approve the City Manager to agree to increase the
existing blanket 204159 to a total of$61,085.51.
"We are here to serve the Citizens of Port Arthur"
P.R.No. 19871
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Page 1 of 3
RESOLUTION NO.
A RESOLUTION AUTHORIZING AN INCREASE TO THE EXISTING
BLANKET ORDER FOR THE PURCHASE OF WATER TREATMENT
CHEMICALS FROM BRENNTAG SOUTHWEST, INC. OF HOUSTON,
TEXAS; FUNDS AVAILABLE IN WATER PURIFICATION TREATMENT
CHEMICALS ACCOUNT NO. 410-1252-532.29-02
WHEREAS, pursuant to Resolution No. 15-215, the City entered into a one (1) year
contract with Brenntag Southwest, Inc., of Houston, Texas, for the purpose of providing fifty
percent (50%) Sodium Hydroxide chemical for various water treatment facilities throughout the
City; and,
WHEREAS, pursuant to Resolution 16-191, the City renewed the contract with Brenntag
Southwest, Inc. for an additional one (1) year period with an amount not to exceed of$56,115.00;
and,
WHEREAS, the market rate for Sodium Hydroxide chemicals has increased due to caustic
producers raising the cost of unit prices from $387.00/per unit to $527/per unit; and,
WHEREAS, an additional $5970.51 is needed to cover the cost increase of the chemicals,
making it a new total of$62,085.51 to the existing blanker order.
NOW THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF PORT ARTHUR:
Section 1: THAT the facts and opinions of the preamble are true and correct.
Section 2: THAT the City Council of the City of Port Arthur hereby approves the
increase of the blanket order for Brenntag Southwest Inc., of Houston, Texas for an additional
$5970.00 to a new total of$62,085.51.
P.R. No. 19871
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Section 3: 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 A.D.,
2017, at 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:
Sherri Bellard,
City Secretary
P.R. No. 19871
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APPROVED AS TO FORM:
\
Valecia Tizeno,
City Attorney
APPROVED FOR ADMINISTRATION:
Brian McDougal,
City Manager
Dr. Jimmie Johnson,
Assistant City Manager/
Director of Utility Operations
APPROVED AS TO AVAILABILITY OF FUNDS:
Rosie Vela,
Director of Finance
Clifton Williams, CPPB
Purchasing Manager
ConnectingChemistry BRENNTAG/111
mor
April 17, 2017
Re. : Caustic Soda Price Increase
Dear Valued Customer,
Brenntag Southwest in increaseing the price for Caustic soda 50% to $527 per dry
ton. The price is effective April 17, 2017.
Caustic producers continue to raise prices into the distribution and end user
market. Thank you for your support.
Sincerley,
Brenntag Southwest
Arhur E. McManners
Senior Account Representative