Placement: Consent Agenda
Action Requested: Motion / Vote
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Approve Amendment #2 to Contract #20200107 for the Supply of Liquid Chlorine Cylinders with Brenntag Mid-South, Inc.
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Submitted By: Robyn Holder, CPPB, Procurement Management Division (PMD).
Strategic Plan Link: The City's Goal of high-quality infrastructure and facilities.
Summary Brief (Agreements/Contracts only)
1. Prepared by: Robyn Holder, CPPB (PMD).
2. Parties: City of Port St. Lucie and Brenntag Mid-South, Inc.
3. Purpose: To provide chemicals for potable water production.
4. New/Renewal/Modified: Modified.
5. Duration: Renewal for one (1) additional year.
6. Benefits to Port St. Lucie: Utilize the City of Orlando’s contract to provide quality potable water to the residents of the City.
7. Cost to Port St. Lucie (Annual and Potential): Estimated annual expenditure is $1,000,000.00. The price for the City of Orlando is the cheapest at $1,975.00 per ton.
Presentation Information: N/A.
Staff Recommendation: Move that the Council approve the renewal with the City of Orlando Contract #IFB20-0379 for the supply of liquid chlorine cylinders from Brenntag Mid-South, Inc.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the renewal of Amendment #2 to Contract #20200107.
2. Move that the Council not approve Amendment #2 to Contract #20200107 and provide staff with direction.
Background: Liquid Chlorine is a compound used at the City’s Water and Wastewater Treatment Facilities for the disinfectant of treated water. As per State regulations, maintaining a chlorine residual in water is mandatory for public health and safety. The City, by and through its Utility Systems Department, uses approximately four hundred and seventy-five (475) tons per year.
Issues/Analysis: The City of Orlando’s contract was competitively bid and meets the requirements of the City’s procurement ordinance. The price for liquid chlorine and steel cylinders (both affect this commodity) has risen exponentially. Chlorine demand domestically and internationally has affected supply and demand, therefore creating large price increases. The shipping crisis has also impacted these commodities as well. By utilizing the City of Orlando’s contract, we are utilizing their large quantities for a price advantage to the City.
Financial Information: Funds are appropriated in the Utility Inventory Fund for the various chemicals (#431-0000-141005 and 431-0000-141006).
Special Consideration: List of current contract pricing (per ton) available to piggy-back with Brenntag Mid-South, Inc.: City of Orlando - $1,975.00; Town of Jupiter - $1,981.00; Seacoast Utility Authority - $1,979.00; City of Hollywood - $2,518.00; Loxahatchee River District - $2,794.50; Englewood Water District - $2,263.00; Pinellas County - $2,800.00; City of Hollywood - $2,518.00.
Brenntag Mid-South, Inc. has provided various chemicals to the City since 2006 and they have provided exceptional service and products. There is another supplier, and it has a lower price per ton with the Town of Jupiter. However, that City has had problems with that supplier in the past, and Seacoast Utility Authority had similar problems with the supplier as recently as this past year.
Location of Project: JEA Water Treatment Plant, Prineville Water Treatment Plant, Glades Wastewater Treatment Plant and Westport Wastewater Treatment Plant.
Attachments:
1. Amendment #2.
2. City of Orlando Amendment.
3. Amendment #1.
4. Original Piggy-back Agreement.
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: 23304-03
Legal Sufficiency Review:
Reviewed by Alyssa Lunin, Deputy City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, Interim City Attorney.