HomeMy WebLinkAboutPR 19928: 25% SODIUM HYDROXIDE FOR WATER PURIFICATION City of
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INTEROFFICE MEMORANDUM
Date: November 2, 2017
To: The Honorable Mayor and City Council
Through: Brian McDougal, City Manager
From: Dr. Jimmie Johnson. Director of Utility Operations
RE: PR 19928 - 25% Sodium Hydroxide for Water Purification
Introduction:
The intent of this Agenda Item is to seek City Council's approval for City Manager to increase
the existing blanket 208791 by $12,072.00 to a total of$54,072.00.
Background:
City Council awarded Resolution No. 17-021, which the City entered into a one-year contract
for the purpose of providing 25% Sodium Hydroxide Chemical for the Water Plant with a
projected budgetary impact of$42,000.00.
The contract had the option to increase the unit cost base on the market, and Brenntag
Southwest increased the contract unit cost from $579/per dry ton to $751/per dry ton, which
required the Blanket Order to be increased by $12,072.00 to a new total of$54,072.00.
Budget Impact:
Water Utilities Operations will charge the additional amount to Water Purification Account
No. 410-1252-532.29-02, Treatment Chemicals.
Recommendation:
It is recommended that City Council approve for City Manager to agree increasing the existing
blanket 208791 by $12,072.00 to a total of$54,072.00.
"Remember,we are here to serve the Citizens of Port Arthur"
P.O.Box 1089 X Port Arthur,Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743
P.R. No. 19928
11/02/2017 cjt/gt
Page 1 of 3
RESOLUTION NO.
A RESOLUTION AUTHORIZING AN INCREASE TO EXISTING
BLANKET ORDER NO. 208791 IN THE AMOUNT OF $12,072.00,
TO A NEW TOTAL OF $54,072.00, FOR THE PURCHASE OF 25%
SODIUM HYDROXIDE WATER TREATMENT CHEMICALS
FROM BRENNTAG SOUTHWEST, INC. OF HOUSTON, TEXAS;
FUNDS AVAILABLE IN WATER PURIFICATION TREATMENT
CHEMICALS ACCOUNT NO. 410-1252-532.29-02, TREATMENT
CHEMICALS.
WHEREAS, pursuant to Resolution No. 17-021, the City entered into a one (1) year
contract with Brenntag Southwest, Inc., of Houston, Texas, for the purpose of providing twenty-five
percent (25%) Sodium Hydroxide chemical for various water treatment facilities throughout the
City, with a projected budgetary impact of$42,000.00; and,
WHEREAS, the market rate for 25% Sodium Hydroxide chemicals has increased due to
caustic producers raising the cost of unit prices from $579.00/per dry ton to $751.00/per dry ton
(Exhibit"A"); and,
WHEREAS, an additional $12,072.00 is needed to cover the cost increase of the chemicals,
making it a new total of$54,072.00 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 to Blanket Order No. 208791 for Brenntag Southwest Inc., of Houston, Texas for an
additional $12,072.00 to a new total of$54,072.00.
Section 3: THAT, a copy of the caption of this Resolution be spread upon the Minutes
of the City Council.
P.R. No. 19928
11/02/2017 cjt/gt
Page 2 of 3
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. 19928
11/02/2017 cjt/gt
Page 3of 3
APPRO ED • . TO FORM:
d A
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:
rL
Andrew Vasquez, C A
Director of Finance
IAS
LA4,,
Clifton Williams, CPPB
Purchasing Manager
Exhibit "A"
4
ConnectingChemistry BRENNTAG "
October 11, 2017
City of Port Arthur
P.O. Box 1089
Port Arthur,TX 77641
Attn.: Clifton Williams
Purchasing Manager
Re.: 25% Sodium Hydroxide(Caustic Soda) Price Increase
Mr. Williams,
The U.S. Chemical Industry is experiencing unprecedented price escalations on many of our
basic raw materials. Caustic Soda has not been immune to this run up of prices and is now at
historical levels.
Due to this,effective November 1,2017,Brenntag Southwest,Inc.is forced to implement an
increase of$172.00 per Dry Ton or$0.0215/Wet Pound on 25%Caustic Soda. This price
increase will change your current pricing to$751.00/Dry Ton or$0.0939/Wet Pound.
Brenntag will continue to monitor the current conditions of the Chlor Alkali marketplace,and
will advise our customers of further changes as they occur.
Thank you for your attention to this and please do not hesitate to contact memyself should you
require any assistance.
Sincerely,
Arthur McManners
Brenntag Southwest, Inc.
Brenntag Southwest,Inc. Phone (225)802-1389
Fax (713)450-4699
E-Mail gtolle1senellbrenntao corn