The URL can be used to link to this page

Home My WebLink AboutCA Executive Summary Chemical Supplier Contract 19-20 A15 2nd Renewal FINAL EXECUTIVE SUMMARY AGENDA ITEM: Proposed Approval of Contract Renewal for the Chemical Supplier Contract ITB# 19/20-A15 Date: October 27, 2022 BACKGROUND: The Chemical Supplier contracts with Brenntag-Mid-South, Inc., Hawkins, Inc., SNF Polydyne, Inc., and Thatcher Chemical of Florida, Inc., are scheduled to expire on November 8, 2022. The terms of the contracts allow for annual renewals for a period of up to six(6)years,contingent upon the mutual agreement. Staff contacted the Suppliers to determine if there was interest to renew the contracts. All Suppliers are interested in renewing the contracts and requested rate increases as shown below.Per the contract,if the Suppliers agree to renew the agreement, CCUA may consider a price increase in either of the renewal years based on verifiable changes in the marketplace. Staff compared the rates to the verifiable changes and have determined the rates to be consistent with the marketplace. ITB# 19/20-A15 New Chemical Supplier Description Unit Type Old Price Price Calcium Hypochlorite or HTH Brenntag-Mid South, Inc. (Granular CaOCI) Pallet $2,504 $3,792 R Sodium Hypochlorite(NaOCI)- 0 12.5 Trade Percent Non-Tanker Hawkins, Inc. Deliveries Gallon $1.38 $1.85 Liquid Polymer-Clarifloc 7320, Polydyne,Inc. 6242,1330 Clarifloc SE-7320 Pound $1.45 $1.57 Thatcher Chemical of Ferric Sulfate(Fe2(SO4)3)-50% Florida, Inc. Aqueous Solution with 10%Iron Gallon $1.37 $1.77 BUDGET IMPACT: The budget impact for the Water Treatment Department will be $233,400 and $950,000 for the Wastewater Treatment Department. This is based on the amount utilized in the last fiscal year. RECOMMENDATION: Staff respectfully requests the Board of Supervisors approve the renewal for the Chemical Supplier Contracts, ITB #19/20-A15 to be extended for an additional one-year term with rate increase. ATTACHMENTS: Chemical Suppliers Rate Increase Requests //DP(Author) //AW,AB(Reviewer) //AW(Final) eo Nr` Clay County Utility Authority Working together to 3176 Old Jennings Road protect public health Middleburg,FL 32068-3907 conserve our natural resources,and create long-term value for TelephoneW (904)272-5999 r7j • �� ill* A UTHOR W W clayutility.org our ratepayers. October 11, 2022 Mr. Ray Sibbitt Brenntag-Mid South, Inc. 1405 Hwy 136 West Henderson, KY 42420 Re: Renewal of Chemical Supplier Contract No. 19/20-A15 for Calcium Hypochlorite and Sodium Bisulfite Dear Mr. Sibbitt: The above referenced contract is scheduled to expire on November 8, 2022. However, the terms of this contract allow for the renewal of an additional year,contingent upon the mutual agreement of both parties. The new contract period will continue from November 9,2022. If you wish to continue the contract under the current terms,please sign,date and return this letter to us by October 14,2022,and we will consider this confirmation of acceptance of the current terms as stated above. to We appreciate your operation and look forward to continuing doing business with you in the coming year. Sincerely, CLAY COUNTY UTILITY AUTHORITY ACCEPTANCE: YES NO tteP Brennta -Mid Sout , In Darrin G. Parker E: Contract & Procurement Specialist or /JCVt/2Iii/ TITLE: /dgp /_dfri2 DATE: cc: Jeremy D. Johnston Leslie Hess Ross Bland We would like to renew at the adjusted rates listed below: Prod# Product Name Packaging Price 566657 SODIUM BISULFITE 40% 6101b drum $4.02/g1 602320 HI-CLEAR®CALCIUM HYPOCHLORITE 100.0000#VDRM $2.37/1b or$237/EA 4 co NT` Clay County Utility Authority Working together to 3176 Old Jennings Road protect public health, Middleburg,FL 32068-3907 conserve our natural ,� Telephone(904)272-5999 resources,and create /�� _�� long-term value for l y AUTHO www.clayutility.org our ratepayers. October 7, 2022 Mr. Raymond Pool Hawkins, Inc. 2263 Clark Street Apopka, FL Re: Renewal of Chemical Supplier Contract No. 19/20-A15 for Sodium Hypochlorite(NaOCI) Dear Mr. Pool: The above referenced contract is scheduled to expire on November 8, 2022. However, the terms of this contract allow for the renewal of an additional year,contingent upon the mutual agreement of both parties. The new contract period will continue from November 9,2022.If you wish to continue the contract under the current terms,please sign,date and return this letter to us by October 12,2022,and we will consider this confirmation of acceptance of the current terms as stated above. We appreciate your operation and look forward to continuing doing business with you in the coming year. Sincerely, CLAY COUNTY UTILITY AUTHORITY ACCEPTANCE: YES NO c+THE ; Hawkins,Inc. a:Grri w G. Parker Darrin G. Parker NAM Contract &Procurement Specialist ( t�u� G r c 7 TITLE: U /dgp /DATE: cc:cc: Jeremy D. Johnston Leslie Hess Ross Bland "u'- r S u.�cC-�l �';c c I t� -g COUNT` Clay County Utility Authority Working together to 3176 Old Jennings Road protect public health, Middleburg,FL 32068-3907 conserve our natural G Telephone(904)272-5999 resources,and create www.clayutility.org long-term value for our ratepayers. October 4, 2022 Sandy Wells SNF Polydyne, Inc. 1 Chemical Plant Road Riceboro, GA 31323 Re: Renewal of Chemical Supplier Contract No. 19/20-A15 for Liquid Polymer Dear Ms. Wells: The above referenced contract is scheduled to expire on November 8, 2022. However, the terms of this contract allow for the renewal of an additional year, contingent upon the mutual agreement of both parties. The new contract period will continue from November 9,2022.If you wish to continue the contract under the current terms,please sign, date and return this letter to us by October 7,2022,and we will consider this confirmation of acceptance of the current terms as stated above. We appreciate your operation and look forward to continuing doing business with you in the coming year. *Pursuant to contract renewal proposal submitted on Sincerely, 10/5/22. Adjusted unit price of$1.57/Lb. * CLAY COUNTY UTILITY AUTHORITY ACCEPTANCE: YES NO (THE) SNF Polydyne, arrix i q. Parker Inc.1I Darrin G. Parker NA ey Contract& Procurement Specialist Sr.Vice-President TITLE: /dgp 10/7/22 DATE: cc: Jeremy D. Johnston Leslie Hess Ross Bland G��,y cov�,r` Clay County Utility Authority Working together to 3176 Old Jennings Road protect public health, Middleburg,FL 32068-3907 conserve our natural G/ Telephone(904)272-5999 resources,and create / ♦ long-term value for r�T► AUTNQ� www.clayutility.org g our ratepayers. October 4,2022 Mr.Craig N.Thatcher Thatcher Chemical of Florida, Inc. PO Box 27407 Salt Lake City,UT 84127 Re: Renewal of Chemical Supplier Contract No. 19/20-A 15 for Ferric Sulfate Dear Mr.Thatcher: The above referenced contract is scheduled to expire on November 8, 2022. However, the terms of this contract allow for the renewal of an additional year,contingent upon the mutual agreement of both parties. The new contract period will continue from November 9,2022.If you wish to continue the contract under the current terms,please sign,date and return this letter to us by October 7,2022,and we will consider this confirmation of acceptance of the current terms as stated above. We appreciate your operation and look forward to continuing doing business with you in the coming year. Sincerely, CLAY COUNTY UTILITY AUTHORITY ACCEPTANCE: YES NO �THER J Thatcher Chemical of Florida,Inc. Darriry G. Parker Darrin G.Parker NAME:(dr Contract&Procurement Specialist C L-- 0 /dgp TITLE: I O/a 5/2O�. DATE: cc: Jeremy D.Johnston Leslie Hess Ross Bland THATCHER CHEMICAL OF FLORIDA, INC. Phone (386) 490-1638 P. 0. Box 489, Deland, FL 32721-0489 Fax (386) 490-1641 43/ October 25,2022 C H E M Darrin Parker Clay County Utility Authority 3176 Old Jennings Road Middleburg,FL 32068 RE: Contract 19/20-A15 Renewal 2 of 5 Darrin: Thatcher Chemical of Florida,Inc. (TCFL)is pleased to renew Contract 19/20-A15 for Ferric Sulfate 10% delivered to your plants. New prices are in effect from 11/9/22 to 11/8/23. Product UOM New Price Ferric Sulfate 10%WTG Gallon $1.77 The manufacture of Ferric Sulfate is accomplished using two primary chemicals,Iron Ore or Magnetite,and Sulfuric Acid. Sulfuric Acid has increased more than 52%over this time last year as supported by the September 2022 PPI(WPU06-13020T1)and supplies are tight. The reduced output combined with an increased global demand for sulfur has had a direct impact on the availability and produced cost. to Chemicals and allied products 106 I- 7.9 1.9 0.8 0.3 -22 -0.5 Ind:atrial cherrlcat3 106 11 9.7 4.3 1.4 1.9 -5.8 -1.3 Basic inorganic acemicats 06 13 28 8 4.6 1.4 4.4 0.3 0.7 Inorganic c5ensrel3.other than alkalies and c.idrme 06 1302 16.2 4A 1.1 22 -0.2 0.1 Numinurn tVIVOLe11111, 06 130209 3.1 0.0 0.0 0.0 0.7 0.0 incaganic ands.inc.hyrrOCMaric,sulfuric add and other 06 130201 47.5 18 8 5.0 •35 -8.7 2.5 Sulturlc acid 06 1302071 520 25,0 6.8 -43 -11.3 1.8 Magnetite is a purified form of Iron Ore used to make Water Treatment Grade Ferric Sulfate which has also increased over prior year. The September 2022 PPI (WPU 10-11)has risen 13%since September 2021. This ore is produced in Northern Europe and is transported by barge to Tampa. 1.lelals and metal products 1 10 - -0.7 1.0 -1.5 -3.3 -t.5 -2.4 Irrn and sleet 10 1 -12.8 4.7 -2.9 -4.7 -4.9 -5.4 Iron ores 10 II 13.0 1.0 6.2 4.0 0.0 0.0 Iron ores 10 1105 13.0 1.0 62 4 0 0.0 0.0 Iron ores .10 110555 13.0 1.0 62 4 0 0.0 0.0 At Thatcher Chemical of Florida,Inc. we appreciate your business and look forward to continuing our long-term business relationship. If you have questions or require more information,please contact Mike Jackson mike.jackson@tchem.com Since ly, Michael E.Jackson Regional Manager