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HomeMy WebLinkAboutPR 22887: RENEWAL OF SODIUM BISULFITE CONTRACT a nr t,n ort rtltur INTEROFFICE MEMORANDUM Date: December 20, 2022 To: The Honorable Mayor and City Council Through: Ronald Burton, City Manager From: Calvin Matthews, P.E., Water Utilities Director RE: PR 22887—Renewal of Sodium Bisulfite Contract Introduction: The intent of this Agenda Item is to seek City Council approval the City Manager to renew the contract for Sodium Bisulfite with Ineos Calabrian from Port Neches, Texas with an annual projected budgetary impact of$210,000.00 from Water Utilities Account No. 410-10-225-5217- 00-00-000, Treatment Chemicals. Estimated annual usage is twenty (20) 1,500 gallon bulk loads, and twenty(20) 3,000 gallon bulk loads; chemical will be delivered as needed. Background: Liquid Sodium Bisulfite is used to de-chlorinate our WWTP effluent. The EPA has determined that liquid chlorine, used as a disinfectant in our treatment process, is hazardous to certain aquatic life at the 0.11 mg/I concentration level. WWTP's of the size of City of Port Arthur's must therefore remove free chlorine from their effluent as a preventative measure. Estimated annual usage is twenty (20) 1,500 gallon bulk loads, and twenty (20) 3,000 gallon bulk loads. The term of the initial contract is 6 months and the Water Utilities Department wishes to renew for another six months. The vendor has agreed to keep the prices stable as shown in Exhibit"A" of the resolution. Five (5) vendors submitted bids, which were received on May 4, 2022. Ineos Calabrian from Port Neches, Texas was awarded the contract with Resolution Number 22-281. This is the first renewal of the contract from February 3, 2023 to August 2,2023. Budget Impact: This chemical is budgeted in the current operating budget. This chemical will be charged to the Water Utilities Account No. 410-10-225-5217-00-00-000, Treatment Chemicals. Recommendation: It is recommended that City Council adopt Proposed Resolution No. 22887, renewing the contract for Sodium Bisulfite for six months as discussed/outlined above. "Remember,we are here to serve the Citizens of Port Arthur" PR No. 22887 12/20/22 tow Page 1 of 3 RESOLUTION NO. A RESOLUTION AUTHORIZING CITY MANAGER TO RENEW THE CONTRACT WITH INEOS CALABRIAN OF PORT NECHES, TEXAS FOR THE PURCHASE OF LIQUID SODIUM BISULFITE FOR AN ADDITIONAL SIX-MONTH PERIOD, WITH A PROJECTED BUDGETARY IMPACT AMOUNT OF$210,000.00.FUNDS ARE AVAILABLE IN UTILITIES ACCOUNT NO. 410-40- 225-5217-00-00-000, TREATMENT CHEMICALS. WHEREAS, the Utilities Department uses Liquid Sodium Bisulfite to de-chlorinate the effluent water from the City's Wastewater Treatment Plants; and, WHEREAS, pursuant to Resolution No. 22-281, the City entered into a contract for the purchase of said chemicals with Ineos Calabrian of Port Neches for a six-month period with an option to renew for an additional six-month period with a projected budgetary impact of $210,000.00; and, WHEREAS, the Water Utilities Department is satisfied with the current unit base price for the chemicals and requests that the contract with Ineos Calabrian be renewed for an additional six months as delineated in the original contract. NOW THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: THAT,the facts and opinions in the preamble are true and correct; and, THAT, the City Manager is hereby authorized and directed to execute, on behalf of the City of Port Arthur,a six-month contract(final renewal)between the City of Port Arthur and Ineos Calabrian of Port Neches, Texas with a projected budgetary impact amount of $210,000.00, in substantially the same form, attached hereto as Exhibit"B"; and, THAT, the City can terminate this contract at its convenience with ten (10) days written notice; and, PR 22887 12/20/22 bw Page 2 of 3 THAT, funding for these chemicals is provided for in the Water Utilities Account Number 410-40-225-5217-00-00-000,Treatment Chemicals; 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 , 2023 at a Regular Meeting of the City Council of the City of Port Arthur,Texas, by the following vote: Ayes: Mayor Councilmembers: Noes: Thurman Bill Bartie Mayor ATTEST: APPROVED FOR ADMINISTRATION: Sherri Bellard Ronald Burton City Secretary City ana er i Calvin Matthe , .E. Water Utilities Director APPROVED AS TO FORM: alecia Tiz o g-TL- bady City Attorney PR 22887 12/20/22 bw Page 3 of 3 APPROVED AS TO AVAILABILITY OF FUNDS: Kandy Daniel Clift illiams, CPPB Interim Finance Director Purchasing Manager Exhibit "A" (Letter) INEC)S Calabrian December 13, 2022 City of Port Arthur Attn: Clifton Williams, Purchasing Manager CC: Danny Thibodeaux—Main WWTP Superintendent 444 4th Street Port Arthur, TX 77641 RE: Sodium Bisulfite 40%Contract 22-281 Dear Clifton: INEOS Calabrian is pleased to announce that we can maintain the current pricing agreement in place for the Sodium Bisulfite 40%Solution Contract 22-281. Pricing as follows can be rolled for another contract term at your discretion. We can hold this pricing firm for another year if need be. • $2.07 per gallon for< 3,000 gallon deliveries • $2.61 per gallon for> 3,000 gallon deliveries Additionally, Purchase Orders and approvals have been issued for the Telemetry Installation on the three Sodium Bisulfite 40%Solution tanks that you have requested telemetry monitoring for at your Wastewater Treatment Plant(s) and should be concluded by the end of December and or early January 2023. We appreciate your business and let us know if you have any questions. Regan Derek E. C ners—Account Manager INEOS Calabrian M: 832-992-3457 Derek.Chinners@lneos.com 1521 Greer Oak Place,Suite 200•Kingwood,Texas 77339 Phone:281.348.2303•Fax:281.348.2310 www.ineosCalabriar.coin Exhibit "B" (Contract) PURCHASING CONTRACT AGREEMENT THIS AGREEMENT is made this the of , 2023, by and between an individual, firm partnership or corporation, Ineos Calabrian of Port Neches, 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. The term of this Contract shall be for six (6) months, beginning February 3, 2023 and ending August 2, 2023. The City can terminate this contract at its convenience which includes, but not limited to, funding not being available in any budget cycle with ten (10) days written notice. 2. The Vendor will provide Liquid Sodium Bisulfite, as delineated and submitted in their bid on May 4, 2022. 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: Liquid Sodium Bisulfite 4. The Vendor agrees to deliver all materials on an as-needed basis during the term of this contract, for a bid price of $2.67/gal. for 1,500 gallon loads, and $2.07/qal for 3,000 gallon loads as shown in the Bid schedule. 5. The term "Contract Documents" means and includes the following: A. Agreement B. Specifications* C. Notice to Proceed* D. Bid* *These items were attached to the original letting contract. This agreement is only included in the renewal. 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 , 2023. WITNESS: VENDOR: INEOS CALABRIAN By: (print name and title) SIGNED AND AGREED to on the day of , 2023. WITNESS: OWNER: CITY OF PORT ARTHUR By: Sherri Bellard Ronald Burton City Secretary City Manager