Placement: Consent Agenda
Action Requested: Motion / Vote
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Approve Amendment #1 to Contract # 20200107 for Liquid Chlorine Cylinders with Brenntag Mid-South, Inc.
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Submitted By: Jason Bezak, CPPB, NIGP-CPP, Procurement Agent II, Procurement Management Department (PMD).
Strategic Plan Link: The City's Goal of high-quality infrastructure and facilities.
Summary Brief (Agreements/Contracts only)
1. Prepared by: Jason Bezak, CPPB, NIGP-CPP, PMD.
2. Parties: City of Port St. Lucie and Brenntag Mid-South, Inc.
3. Purpose: To provide Liquid Chlorine as needed to treat City water.
4. New/Renewal/Modified: Modified.
5. Duration: The initial term began on August 11, 2020 through August 10, 2023 with a renewal option of two (2) additional twelve (12) month periods. However, due to price instability, the City of Orlando has only accepted Brenntag Mid-South, Inc.’s price increase for 6 months and will evaluate afterwards. The new pricing is effective February 1, 2022.
6. Benefits to Port St. Lucie: Utilize City of Orlando's contract to provide quality water to City residents.
7. Cost to Port St. Lucie (Annual and Potential): Estimated six months of expenditures based on the price increase adds an additional $255,000 to the original estimated annual expenditure of $250,000 for a total of $505,000. Future expenditures for projects will be as appropriated in each year’s budget.
Presentation Information: N/A.
Staff Recommendation: Move that the Council approve Amendment #1 to Contract # 20200107 for Liquid Chlorine Cylinders with Brenntag Mid-South, Inc.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve Amendment #1 to Contract # 20200107 for Liquid Chlorine Cylinders with Brenntag Mid-South, Inc.
2. Move that the Council not approve Amendment #1 to Contract # 20200107 for Liquid Chlorine Cylinders with Brenntag Mid-South, Inc and provide staff with direction.
Background: Liquid Chlorine is a compound used at the City’s Water and Wastewater Treatment Plants 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 uses approximately four hundred seventy-five (475) tons per year. The bidding process used by the City of Orlando meets all the requirements of the City’s Procurement Ordinances.
Issues/Analysis: The City of Orlando has an existing Contract that was competitively bid and does not expire until August 2023. Price for 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 impacted these commodities and transportation costs have increased as well. By Piggybacking the City of Orlando, we are utilizing their large quantities for a price advantage. Staff approached Allied Universal, the only other Liquid Chlorine servicer in our area for a price per ton for comparison. The Prices are as follows:
Brenntag Mid-South, Inc. - $1,385.00 Per Ton
Allied Universal - $1,449.00 Per Ton
The City has been using Brenntag Mid-South since 2006 for various chemicals and they have provided exceptional service and products.
Financial Information: Funds are appropriated in the Utilities Inventory fund for both water and sewer (431- 0000-141005 and 431-0000-141006.)
Special Consideration: N/A.
Location of Project: James E. Anderson Water Treatment Facility, Prineville Water Treatment Facility, Glades Wastewater Treatment Facility, and Westport Wastewater Treatment Facility.
Attachments:
1.) Vendor Executed Amendment # 1 for Contract # 20200107.
2.) Contract # 20200107.
3.) Vendor Executed City of Orlando Amendment #1.
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: 7882.
Legal Sufficiency Review:
Reviewed by Ella M. Gilbert, Deputy City Attorney. Approved as to Legal form and sufficiency by James D. Stokes, City Attorney.