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Home My WebLink AboutCA Chemical Supplier 20-21-A5 Second Renewal FINAL EXECUTIVE SUMMARY AGENDA ITEM: Proposed Approval of Contract Renewal for the Chemical Supplier Contract ITB# 20/21-A5 Date: February 16, 2023 BACKGROUND: The Chemical Supplier Contracts with Thatcher Chemical of Florida, Inc. and Odyssey Manufacturing Co. are scheduled to expire on March 8, 2023. The terms of the contracts allow for annual renewals for a period of up to six (6)years, contingent upon the mutual agreement of both parties. Staff and the Suppliers are interested in renewing the contract with the requested rate increases shown below. Per the contract, if all parties 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 in the marketplace and have determined the rates to be consistent. ra a ITB#20/21-A5 Unit vs Chemical Supplier Description Type Old Price New Price ° Thatcher Chemical of Florida, Inc. Sodium Bisulfite 38%-40% Gallon $1.85 $2.36 Sodium Hypochlorite (NaOCI)- re Odyssey 12.5 Trade Percent Non-Tanker Manufacturing Co. Deliveries Gallon $0.775 $1.19 BUDGET IMPACT: The budget impact will be$690,411.52 per year. This is based on the amount used in the past fiscal year. RECOMMENDATION: Staff respectfully requests the Board of Supervisors approve the renewal for the Chemical Supplier Contracts, ITB #20/21-A5 to be extended for an additional one-year term with rate increase. ATTACHMENTS: Chemical Suppliers Rate Increase Requests //DP(Author) //DP,LH,AB (Review) //DM(Final) THATCHER CHEMICAL OF FLORIDA, INC. Phone (386) 490-1638 245 Hazen Road Fax (386) 490-1641 Deland, FL 32720 O CHEM February 6, 2022 Angelia Wilson Clay County Utility Authority 3176 Old Jennings Road Middleburg, Florida 32068 awilsonna clayutility.org Re: Chemical Supplier Contract No. 20/21-A5 For Sodium Bisulfite, Renewal 2 of 4 Period: 3/9/23 through 3/8/24 Dear Ms. Wilson: Thatcher Chemical of Florida, Inc. is appreciative of the opportunity to serve the Clay County Utilities Authority for the chemicals listed below. We are interested in renewing our contract to provide the chemicals listed below for another year. This year has seen historic inflation in the chemical raw materials required to manufacture Sodium Bisulfite (SBS). Chemical Package Current Price New Price Sodium Bisulfite 38%-40% bulk $1.85 $2.36/gallon to We are requesting an increase due to the continuing commodity inflation of the chemicals used to manufacture Sodium Bisulfite as well as significantly increased cost of rail freight. Sodium Bisulfite is manufactured from Sulfur Dioxide and a base, either Sodium Carbonate or Sodium Hydroxide. Sulfur is again rising in price but more impactful is the increase in cost for Sodium Carbonate and Sodium Hydroxide. The December 2022 PPI increased 6.2% overall. Basic inorganic chemicals(06-13) increased 28.9%, Sodium Hydroxide (06-1303024) is up 53.7%and Sodium Carbonate(06- 1303) increased 57.9%. If you require additional information, please contact Mike Jackson at mike.jackson@tchem.com We appreciate your business and look forward to meeting your chemical requirements in the coming months and years. Sincerely, raig N. hatcher C.E.O. ODYSSEY MANUFACTURING CO. November 13, 2022 Ms. Leslie Hess Administrative Assistant Clay County Utility Authority 3176 Old Jennings Road Middleburg, FL 32068-3097 Re: RENEWAL REQUEST FOR CHEMICAL SUPPLY CONTRACT 20/21-A5 FOR SODIUM HYPOCHLORITE Encl: (1) Producer Price Index—PCU325 1 80325 1 80S Dear Ms. Hess, As you know, Odyssey Manufacturing Co. has been supplying the Clay County sodium hypochlorite under the current subject contract at a unit price of$.775 per gallon since March 9, 2021. The contract expires on March 8, 2023 and has five more one-year renewals remaining. Odyssey Manufacturing Co. hereby offers to renew the subject agreement for an additional year effective March 9, 2023 through March 8, 2024, at a revised unit price of$1.19 per gallon. This price is fixed for the water and wastewater treatment plants and there are no fuel surcharges, delivery fees or other to hidden charges. As part of the chemical supply, Odyssey will continue to provide technical assistance to your facilities as required as we have done in the past at your Water and Wastewater Treatment facilities. As you are aware, we have been in a period of unprecedented inflation in this county over the past two years. In particular, costs in the chemical industry have risen dramatically. Enclosure(1) is a copy of the Producer Price Index(PPI)which includes sodium hypochlorite and as you can see it has gone up over 130% in the past twenty-four months and 34.8% in the past twelve months. Frankly,we did not see most of these increases until the past year as various contracts expired. Our proposed price increase over the past two years is 109.9%,which is significantly less than this amount. Additionally, I have attached a table showing all sodium hypochlorite bids in the State of Florida in the past six months to aid in your evaluation. Annual Allied Odyssey Bid Date Utility Gallons 4/18/2022 Sarasota County 1,430,000 $1.07 $1.02 4/18/2022 Sarasota County (Em. Deliveries) 72,000 $1.12 $1.02 4/27/2022 Collier County Aquatic Facilities 109,500 No Bid $1.25 6/8/2022 Okeechobee Sports Complex 30,000 No Bid $1.45 6/10/2022 City of New Port Richey 320,000 $.988 $1.45 6/16/2022 City of Palm Coast 550,000 $.984 No Bid MANUFACTURERS OF [L1RA CHLOR (800) ODYSSEY www.odysseymanufacturing.com 6/23/2022 Emerald Coast Utilities 500,000 $1.16 $1.40 7/14/2022 Town of Jupiter(>4,000 gallons) 328,000 $1.01 $1.70 7/14/2022 Town of Jupiter(Small Trucks) Unknown $1.15 $3.75 7/19/2022 City of Cocoa 625,000 $1.018 No Bid 7/26/2022 City of Naples 540,000 $1.04 No Bid 8/10/2022 Charlotte County 606,000 $1.07 $1.65 8/11/2022 City of West Palm Beach—Water 500,000 $1.42 $1.20 8/11/2022 City of West Palm Beach—ECR 785,000 $1.42 $1.20 8/11/2022 City of Sanibel—Year 1 94,000 $1.08 $1.20 8/11/2022 City of Sanibel—Year 2 94,000 $1.15 $1.25 8/11/2022 City of Sanibel—Year 3 94,000 $1.20 $1.30 9/6/2022 Bay County 232,500 $1.89 $1.35 9/8/2022 City of Marco Island 404,405 $1.34 $1.55 9/9/2022 Seacoast Utility Authority 250,000 $1.29 $1.55 10/7/22 City of Plantation 262,000 $1.328 $1.67 10/26/22 City of Lakeland 90,000 $1.57 $1.58 10/27/22 Pinellas County 1,481,223 $1.45 $1.15 Thank you for your consideration. We value our supplier relationship with the Clay County Utility Authority both as a customer and business partner. We look forward to the opportunity to serve your to sodium hypochlorite needs in the future. Please do not hesitate to contact me at(813)ODYSSEY or cellular(813)335-3444 if I can be of further assistance. Sincerely atrick H. Allman General Manager c (1) Dennis Martin, Clay County Utilities U.S.BUREAU OF LABOR STATISTICS Bureau of Labor Statistics>Data Tools> Data Retrieval Tools> Multi-Screen • Databases, Tables & Calculators bray� Subject Change Output Options: From: 2012 v To: 2022' ❑include graphs u include annual averages More Formatting Otstionsm.16- Data extracted on:November 1,2022(1:43:03 PM) PPI Industry Data Series Id: PCU3251803251805 ' Series Title: PPI industry data for Other basic inorganic chemical manufacturing-Secondary products,not seasonally adjusted / Industry: Other basic inorganic chemical manufacturing Product: Secondary products / Base Date: 201012 Download:jn.xisx Year Jan I Feb 1 Mar I Apr I May I Jun ' Jul I Aug 1 Sep ' Oct I Nov I Dec 2012 99.8 102.7 102.7 102.7 1 102.7 I 102.7 102.4 I 102.3 I 102.3 102.3 102.4 I 102.4 2013' 102.81 102.31 102.61 102.21 102.01 1015 I 101.7 I 101.6 j 102.3 I 102.3 102.3 102.4 2016I I i I 109.31 109.71 12017 I 110.9 I 111.11 111.01 111.8 1 113.7 114.1 113.81 118.81 119.4. 121.0 I 121.5 I 121.6 12018 123.3 I 123.8 I 123.9 I 123.6 127.6 127.6 I 131.5 I 131.5 I 131.5 1315 I 128.3 I 128.31 12019 130.9 130.9 1 134.0 i 133.9 117.3 117.3' 117.3 I 108.71 108.7 108.7 107.11 107.1 12020 109.4 109.4 I 109.4! 109.4 109.4 109.4 I 108.2! 107.7 I 107.71 144.0 156.0` 156.0 12021 154.1 154.11 154.11 158.3 I 176.41 176.41 181.197 183.7021183.717 181.729 186.468 1189.3741 12022 I 187.089 I 193.115 I 204.050 I 226.850 I 228.533 I 223.787(P)I 249.673(P) 247.773(P)':. IP:Preliminary.All indexes are subject to monthly revisions up to four months after original publication. . • U.S.BUREAU OF LABOR STATISTICS Postal Square Building 2 Massachusetts Avenue NE Washington,DC 20212-0001 Telephone:1-202-691-5200_Telecommunications Relay Service:7-1-1_www.bls.gov Contact Us )-L-j 7 '1 `l 3 -- i 671 0 76, �Z ,-s .... .......... . ._ 1 � /o'7t; n/ 2 L11- ?3 - 1,3.7o Z_ s to (I ,�e.-tAr) s 183.7dZ.