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HomeMy WebLinkAboutPR 24924: A CONTRACT WITH AOS TREATMENT SOLUTIONS, LLC FOR THE PURCHASE OF SOLE SOURCE POLYMERS AND DELINEATING PROCEDURES FOR THE PURCHASE OF OTHER CHEMICALS of girt rthut INTEROFFICE MEMORAN D U M Date: May 1, 2026 To: The Honorable Mayor and City Council Through: Ronald Burton, City Manager From: Calvin Matthews, P.E. Water Utilities Director RE: PR 24924—Polymers & Polymer Aide for Water and Wastewater Treatment Plant Introduction: This Agenda Item intends to seek the City Council's approval to enter into a purchasing contract with AOS Treatment Solutions, LLC of Cypress, Texas for the purchase of sole sourced polymers for water purification and wastewater treatment plants. Background: The Water Purification and Wastewater Treatment Plant processes use polymer coagulants to remove solids from water. Each process uses a unique blend of chemicals for maximum effectiveness. These polymer blends are sole-source and proprietary in their make-up. This resolution authorizes the purchase of these products from AOS Treatment Solutions, LLC as each is needed for operation system to meet the most cost-effective at any given time. All Water/Wastewater Treatment Chemicals are administered by trained employees who are properly certified by the Texas Commission on Environmental Quality. Budgetary Impact: The polymer is used on an as-needed basis. The total projected budgetary amount is $1,860,000.00. Funding is available in Treatment Chemicals Account Nos.: $1,725,000.00; FY26 and FY27,410-40-210-5217-00-00-000, Water Purification $135,000.00; FY26 and FY27, 410-40-225-5217-00-00-000, Wastewater Treatment Subject to the annual approval of the Budget by City Council and the Appropriation of funding. Recommendation: It is recommended that City Council approve PR No. 24924, authorizing the purchase of sole source polymers by Water Utility Operations Department. "Remember, wwe are here to serve the Citizens of Port Arthur" w PR No. 24924 05.01.2026 cs/cm Page 1 of 4 RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH AOS TREATMENT SOLUTIONS, LLC OF CYPRESS, TEXAS FOR THE PURCHASE OF SOLE SOURCE POLYMERS AND DELINEATING PROCEDURES FOR THE PURCHASE OF OTHER CHEMICALS, WITH A TOTAL PROJECTED BUDGETARY IMPACT OF $1,860,000.00. FUNDING IS AVAILABLE IN THE WATER UTILITIES DEPARTMENT TREATMENT CHEMICALS, $1,725,000.00 IN ACCOUNT NO. 410-40-210-5217-00-00-000 ($300,000.00 FOR FY26 AND$1,425,000.00 FOR FY27),AND $135,000.00 IN ACCOUNT NO. 410-40-225-5217-00-00-000 ($35,000.00 FOR FY26 AND $100,000.00 FOR FY27), SUBJECT TO CITY COUNCIL'S ANNUAL APPROPRIATION AND APPROVAL OF THE BUDGET. WHEREAS,the Water Purification Plant takes raw water from the Lower Neches Valley Authority canal, clarifies, disinfects, stabilizes, and treats the water so that it can be distributed as drinking water for the public; and, WHEREAS,the Wastewater Treatment Plants receive wastewater from the City to clarify, disinfect, stabilize, and treat so that it can be safely discharged back into our nation's waterways; and, WHEREAS, most of the chemicals used for treatment are common commodities of standard chemical composition, which are sold by numerous distributors, and the City can obtain these chemicals through the renewal process; and, WHEREAS, certain other chemicals are not of standard chemical composition and are available only from one source because of patents, copyrights, secret processes, or natural monopolies; and, WHEREAS,these chemicals are polymers and polymer aide used at the treatment plants for various purposes; and, PR No. 24924 05.01.2026 cs/cm Page 2 of 4 WHEREAS,these proprietary chemicals have to be tested at the plant to determine if they can properly treat, and not create adverse conditions to the plant or to the water; and, WHEREAS, AOS Treatment Solutions, LLC of Cypress, Texas has submitted a sole source and pricing letter for such treatment chemicals (Exhibit"A"), and; WHEREAS,the Water Utilities Department would like to enter into a purchasing contract with AOS Treatment Solutions, LLC for the purchase of such sole source treatment chemicals (Exhibit `B") with a total projected budgetary impact of$1,860,000.00, with $1,725,000.00 for the Water Purification Plant($300,000.00 for FY26 and$1,425,000.00 for FY27)and$135,000.00 for the Wastewater Treatment Plant ($35,000.00 for FY26 and $100,000.00 for FY27), subject to City Council's annual appropriation and approval of the FY27 budget. NOW THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR,TEXAS: THAT,the facts and opinions in the preamble are true and correct; and, THAT, the Director of Water Utilities shall have the discretion to choose the amount of proprietary chemicals-polymers so long as he does not exceed his yearly budget for this item,the chemicals are approved by the TCEQ and National Sanitation Foundation, are successfully tested at the plant, and that the manufacturer thereof is financially stable and has liability insurance. If through testing, the Director of Water Utilities discovers other proprietary chemicals that he desires to purchase in excess of$25,000 per year, he shall submit that chemical to City Council to add to the approved list; and, THAT,the City Manager is hereby authorized and directed to execute, in substantially the same form as attached hereto as Exhibit`B",a purchasing contract with AOS Treatment Solutions, PR No. 24924 05.01.2026 cs/cm Page 3 of 4 LLC of Cypress, Texas fo"r the purchase of sole source chemicals with a total projected budgetary of$1,860,000.00; and, THAT,the total projected budgetary impact for these chemicals for the Water Purification Plant is $1,725,000.00 which $300,000.00 is allocated for FY26 and $1,425,000.00 is allocated for FY27(subject City Council's annual appropriation and approval of FY27 budget)with funding available in Account No. 410-40-210-5217-00-00-000, Treatment Chemicals; and, THAT, the total projected budgetary impact for these chemicals for the Wastewater Treatment Plant is $135,000.00 which $35,000.00 is allocated for FY26 and $100,000.00 is allocated for FY27 (subject City Council's annual appropriation and approval of FY27 budget) with funding available in Account No. 410-40-225-5217-00-00-000, Treatment Chemicals; and, THAT, a copy of the caption of this Resolution shall be spread upon the Minutes of the Meeting of the City Council. READ, ADOPTED AND APPROVED this day of , 2026 at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES: Mayor Councilmembers: NOES: Charlotte M. Moses Mayor ATTEST: Christie Whitley Ned City Secretary PR No. 24924 05.01.2026 cs/cm Page 4 of 4 APPROVED AS TO FORM: Roxann Pais Cotroneo City Attorney APPROVED FOR ADMINISTRATION: Ronald Burto PM City Mana r Suhail Kanwar, P.E. Director of Public Services fka yin Matthews, P.E. Water Utilities Director APPROVED AS TO THE AVAILABILITY OF FUNDS: ipichc 336< da(Lynda oswell, A CGFO Finance Director (-6 LuAL Clifton . Williams Jr. CPPB Purchasing Manage Exhibit A A , AOS AOS TREATMENT SOLUTIONS, LLC kiwil June 2, 2026 Mr. Jeff Wyble City of Port Arthur,Texas Water Purification Plant 1101 H.O. Mills Boulevard Port Arthur,Texas 77640 Subject AOS 7050 and AOS 7713 Sole Source Letter with Pricing. Dear Jeff: The City of Port Arthur water purification plant is currently purchasing two different treatment chemicals from AOS Treatment Solutions, LLC. AOS 7050 is specifically designed and expressly manufactured by AOS Treatment Solutions, LLC. This product is not available through any other commercial outlet. The current price for AOS 7050 is $0.92/Ib. with a freight surcharge of$.107/Ib. AOS 7713 is also exclusively sold by AOS Treatment Solutions, LLC and is not available from any other commercial outlet or distributor. The current price for AOS 7713 is$1.99/Ib. Both products are sold FOB delivered in bulk quantities. Both product prices will be held firm until September 30,2026. We at AOS Treatment Solutions sincerely appreciate your business and will continue to provide quality products and experienced technical support at the lowest possible cost. If you have any questions, please do not hesitate to contact me. Sincerely, i .r7.1.47---.44.-44Vigt-i2--- George H. Hahn—President 41 GHH/hs 14600 Cypress N.Houston Road • Cypress,TX 77429 • 936-539-0040 • Fax 936-539-0041 • http.//www.aosts.com 1 Exhibit B PURCHASING CONTRACT FOR SOLE-SOURCED POLYMERS THIS AGREEMENT is made this the of , 2026, by and between an individual, firm partnership or corporation, AOS Treatment Solutions, LLC of Cypress, 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 through September 30, 2026, from the date of execution unless sooner terminated under the provision hereof. The City can terminate this contract at its convenience which includes, but not limited to, funding not being available in any budget cycle, with thirty (30) days of written notice. 2. The Vendor will provide AOS 7050 and AOS 7713 as delineated and submitted in their sole-source and pricing letter dated June 2, 2026. 3. During the term of this Contract, the Vendor will furnish all of the materials and supplies, as stated in their sole-source and pricing letter dated June 2, 2026. 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: $0.92/Ib for AOS 7050 with a freight surcharge of $0.107/Ib $1.99/Ib for AOS 7713 as shown in the Bid schedule. 5. The term "Contract Documents" means and includes the following: (A)Agreement (B) Sole Source and Pricing Letter 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 , 2026. WITNESS: VENDOR: AOS Treatment Solutions, LLC SIGNED AND AGREED to on the day of , 2026. WITNESS: OWNER: I City Secretary City Manager I