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Home My WebLink About15.d FYI Memo - USP Technologies 2025 Final - cothvi CLAY COUNTY UTILITY AUTHORITY Aim MEMORANDUM TO: Jeremy D. Johnson, Executive Director FROM: Darryl Muse, Chief Operations Officer Angelia Wilson, Procurement Manager DATE: December 12, 2024 RE: Notification of Price Increase for Odor Control at Ridaught Landing Water Reclamation Facility (WRF) On June 7, 2022, the Board of Supervisors approved the decision to Piggyback on the City of Orlando's Contract No. IFB21-0285 with USP Technologies (USP) for a service agreement related to chemical-based odor control at Ridaught Landing WRF. The USP/CCUA Service Agreement is scheduled to expire on December 31,2024. However,the agreement includes terms that allow of an additional one (1) year renewal, subject to mutual agreement between both parties. Staff engaged USP Technologies, which is interested in renewing the agreement with a proposed rate increase: Pricing: • The price for peroxide will increase from $5.27 per gallon to $5.43 per gallon to align with the City of Orlando's contract pricing. • The Transportation and Energy Surcharge will remain at 5% • The Facility Fee for peroxide will remain unchanged at$560 per month. This pricing adjustment is consistent with the City of Orlando contract CCUA utilizes for piggybacking. All other provisions in the original proposal will remain in effect, except pricing, which is determined by the piggyback agreement. Attachments: 2025 Odor Control Program Renewal Letter USP Price and Surcharge 2025 Amendment No. 4, City of Orlando Contract No. IFB21-0285 //DP(Author) //AW, DP,AE(Review) //DM(Final) USP technologies' Solutions for a dean environment Date: September 26, 2024 To: Barry Cole Steve, First,thank you for your business with USP Technologies and confidence in our company to treat your system. As a Piggy-Back account with Orlando you may have received notice from them that the renewal for the next fiscal year has been accepted with a price adjustment. Since Clay County has been adjusted January 15t of the year,the price adjustment will remain on that schedule, but will be effective until the end of the Orlando fiscal year 9/30/25. Beginning 1/1/2025 the pricing for 50% hydrogen peroxide will match the new pricing at City of Orlando of $5.43/gallon. Facility Fee will remain at$560/month and surcharge will remain at 5%. Item January 2025 Pricing Estimated 2025 Usage Budget Amount Hydrogen Peroxide $5.43/gal 24,000 gal/yr $130,320 The increase is necessary to offset increased material and operating costs incurred by USP Technologies. Two graphic illustrations from last year have been included again in Appendix A as the main factors impacting pricing continue to be manufacturing capacity and driver availability USP Technologies will continue to work on optimizing usage to control program costs. Thank you for your trust in our team and in USP. I look forward to our continued work together. Sincerely, Agreed to and Accepted on , 2024 Jim Graham Company Name: Clay County USP Technologies By: SE Territory Manager (901) 286-7177 jgraham@usptechnologies.com Title: 1 APPENDIX A CtUSP echnologies- SoLullons for a clean environmeN 2016.2026 NAM HP industry utilization rate (%) Demand Capacity increase• COVID increased demand in semiconductors to increase demand impact progressively tighten the market U.e,.a,,r.1 nanirtil 99% �,Tx+., 98� 97% 92% �% 93a 92% 95% 91% sespord mane. 90% 86% MD Mk 2014 20Ib 202C 2022 42» 2026 •tAZ Economics Department -American Trucking Association —Arlington,Virginia Truck Driver Shortage 180,000 160,000 140,000 120,000 100,000 80,000 b0,000 40,000 20,000 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 Hydrogen Sulfide Control Services Amendment No.: Four IFB21-0285 AMENDMENT NUMBER FOUR TO AGREEMENT DATED AUGUST 26, 2021 BETWEEN CITY OF ORLANDO AND US PEROXIDE, LLC. DBA USP TECHNOLOGIES THIS AMENDMENT TO AGREEMENT is made and entered into this I2114day of v-1-. , 2024, by and between the City of Orlando, a municipal corporation organized and existing under the laws of the State of Florida, hereinafter referred to as the "City" and "US PEROXIDE, LLC. DBA USP TECHNOLOGIES", hereinafter referred to as the "Contractor". WHEREAS, the City and the Contractor entered into an Agreement ("the Agreement") under the date of August 26, 2021, whereby the latter would perform certain services with respect to the corrosion and odor control with hydrogen peroxide and PRI-SC; and WHEREAS, the City and the Contractor desire to amend the compensation provisions of said Agreement to increase the price; NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties agree as follows: I. Term of Agreement The Term of the Agreement are hereby extended from August 24, 2024 to August 23, 2025. II. Compensation Provision The Compensation provisions of the Agreement are hereby amended to add a 12.8% increase or $1,951/DT on Ferrous Chloride and a 3% increase or$5.43/gal on 50% Hydrogen Peroxide services and as set forth in Exhibit "A" attached hereto and incorporated herein by reference. The Contractor shall continue to provide corrosion and odor control with hydrogen peroxide and PRI-SC. In all other respects, and except as specifically modified and amended herein and in Amendment One dated May 9, 2022, Amendment Two dated January 5, 2023, Amendment Three dated December 22, 2023 and the Agreement dated August 26, 2021, shall continue in full force and effect as written and the parties hereto agree to be bound thereby. ****************************************************************************** 1 of 3 Hydrogen Sulfide Control Services Amendment No.:Four IFB21-0285 IN WITNESS WHEREOF, the parties hereto have hereunto set their hands and seals on the date first written above. PROCUREMENT&CONTRACTS DIVISION APPROVED AS TO FORM AND LEGALITY City of Orlando, Florida for the use and reliance of the City of Orlando,.Florida,only. By: Chief Procurement Officer �Date: �.--�- , 2024 David Billingsley,CPSM, C.P.M. Name,Typed�� or Printed // Date: I'�J v ASSISTANT CITY ATTORNEY 3 2024 ORLANDO,FLORIDA ********************************44'**4*4M*****, :*************4********4**************F:***4*** CTRACTOR By: Signat VP &General Manager CORPORATE SEAL Name&Title,Typed or Printed US Peroxide LLC dba USP Technologies ......... Name of Company, Corp.,etc. 5640 Cox Road • Mailing Address • Glen Allen, VA 23060 City, State and Zip 970-214-5276 Area Code/Telephone Number ****************************8*8*84****4848*8*****************4****************************** STATE OF FLORIDA COUNTY OF The foregoing instrument was acknowledged before me by means of physical presence or online notarization,this day of ,20_,by . (name of person) as (type of authority,(e.g.,officer, trustee,attorney in fact,etc.) for (name of entity/party on behalf of whom instrument was executed). (SEAL) Signature of Notary Public—State of Florida --- Print,Type,or Stamp Notary Name: _Personally Known or_Produced Identification Type of Identification Produced 2 of 3 Hydrogen Sulfide Control Services Amendment No.: Four IFB21-0285 EXHIBIT "A" (Compensation Provisions) 3 of 3 USP technologies Solutions for a dean env Javarie McDonald Purchasing Agent II City of Orlando Procurement and Contracts July 8, 2024 Re: Price Adjustment for 4th Amendment IFB21-0285 Dear Javarie, Thank you for the opportunity to renew the current agreement with USP Technologies for odor control in your collection system,we have appreciated the partnership with the City of Orlando and look forward to continuing working with your team.There have been significant changes to cost of raw materials, and the following changes are proposed for the renewal, sharing the cost increase for iron and reducing the cost in two other areas. • Iron pricing has increased 17%and request an increase of 12.8% • Pricing will change from$1729 to$1951/dry ton to share added cost • Peroxide is expected to increase 3% in 2024 • Price change from the current$5.27/gal to$5.43/gal • Facility Fees changed to reflect current servicing demands(reduce$1120/month) • Billing will be$560/month for peroxide • Billing will be$560/month for iron • Earlier the Transportation and Energy Surcharge was reduced from 13%to 5% • Surcharge will remain at 5%. Please let me know if you have any questions. Regards, 914/44m USP Technologies Territory Manager, Southeast (901)286-7177 jgraham@usptechnologies.com USP technologies USP Technologies usptechnologies.com 1375 Peachtree Street NE,Suite 300N,Atlanta 30309 info@usptechnologies.com Phone: 404-352-6070 Fax: 404-352-6077