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Home My WebLink About05.b.01.a CA ITB 20-21-A5 Chemical Supplier Contract 4th Renewal Final EXECUTIVE SUMMARY AGENDA ITEM: Proposed Approval of the Fourth Chemical Supplier Contract Renewal ITB# 2020/2021-A5 Date: February 27, 2025 BACKGROUND: The Chemical Supplier Contracts with Thatcher Chemical of Florida, Inc. and Odyssey Manufacturing Co. are scheduled to expire on March 8, 2025. The contracts allow for annual renewals for a maximum of six (6) years, contingent upon mutual consent of both parties. Both Suppliers are interested in renewing the contracts with one (1) Supplier requesting a rate increase shown below. Per the contract, if all parties agree to renew the agreement, CCUA may consider a price increase in either renewal year based on verifiable market changes. Staff compared the rates and confirmed they are consistent with current market conditions. ITB# 20/21-A5 Unit Old New Chemical Supplier Description Type Price Price Sodium Hypochlorite (NaOCI)- Odyssey 12.5 Trade Percent Non-Tanker Manufacturing Co. Deliveries Gallon $1.45 $1.53 ITB#20/21-A5 Unit Chemical Supplier Description Type Price Thatcher Chemical of Florida, Inc. Sodium Bisulfite 38%-40% Gallon $2.44 BUDGET IMPACT: Staff budgeted $1,370,000 for chemicals in the current fiscal year. We will be able to operate within the established budget with the proposed chemical price increase. RECOMMENDATION: Staff respectfully requests the Board of Supervisors approval of the Chemical Supplier Contracts, ITB #2020/2021-A5 fourth renewal for an additional one (1)year term with rate increase. ATTACHMENTS: Odyssey Manufacturing Co. Renewal Letter and Rate Increase Request Thatcher Chemical of Florida, Inc. Renewal Letter //DP(Author) //AW,LB,AE(Review) //DM(Final) /Gtip,Y coU�,7, Clay County Utility Authority Working together to 3176 Old Jennings Rd. protect public health, Middleburg,Florida 32068-3907 conserve our natural ,� �. Telephone(904)213-2413 resources,and create Facsimile(904)213-2436 long-term value for our ratepayers. February 6, 2025 Mr. Patrick H. Allman Odyssey Manufacturing Company 1484 Massaro Blvd. Tampa, FL 33619 RE: Fourth Renewal of ITB No. 20/21-A5 Chemical Supplier Contract for Sodium Hypochlorite Dear Mr. Allman: The above referenced contract is scheduled to expire on March 7,2025.The contract terms allow for a renewal period of 12 months, contingent upon the mutual agreement of both parties. The Clay County Utility Authority(CCUA)is hereby providing written notice of interest in renewing the existing contract for an additional 12-month period, continuing from March 8, 2025 - March 7, 2026. Please provide any requested price adjustments to accompany this letter for the contract renewal. Please notify CCUA and advise if you agree and would like to renew the existing contract for an additional 12 months before February 14,2025 by signing this letter below and returning it to our office. CCUA appreciates your cooperation. We look forward to continuing business with you and your organization in the coming years. Sincerely, CLAY COUNTY UTILITY AUTHORITY ACCEPTANCE: YES NO OTHER Digitally signed by Damn Parker Odyssey Manufact ring Company Darrin OU OU=Finan a OUaCN=Damn Parker, Reason:I am the author of this document Parker DozitIPDFS Editor�Vers ono 219 Darrin G. Parker NAME: %�,,,,��, Contract& Procurement Specialist kt d- t Mt eyis.4) ; e+�./� entAc rr TITLE: /dp 2 - i 2- DATE: cc: Jeremy D. Johnston Darryl Muse I 1, - ckate Zit►JZSreltv440yrwe • ODYSSEY MANUFACTURING CO. February 11, 2025 Mr. Darrin G. Parker Contract&Procurement Specialist 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)Consumer Price Index Summary Dear Darrin, As you know,Odyssey Manufacturing Co.has been supplying the Clay County Utility Authority (CCUA) sodium hypochlorite under the current subject contract since March 9, 2021. The contract initially expired on March 8, 2023, and has been renewed twice through March 8, 2025 and has three more one-year renewals remaining. Odyssey Manufacturing Co. hereby offers to renew the subject agreement for an additional year effective March 9, 2025 through March 8,2026, at a revised unit price of$1.53 per gallon(an increase 5.5%). This price is fixed for the water and wastewater treatment plants and there are no fuel surcharges, delivery fees or other 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. Over the past twelve months,most of our costs have gone up proportional to the inflation rate(2.8% per Enclosure(1))with the exception of liability and property insurance which went up by just under $2 million this past year and wages(which went up 5%because of the lack of blue collar workers). This increase for insurance is the equivalent of$.03 per gallon all by itself or 2.1%). The marketplace considers chemical companies a bad risk and everyone knows that the property insurance market is increasing by leaps and bounds because of all the natural disasters. Most of our employees are hourly employees and we have had to pay increasingly well to keep our drivers and plant operators. Hence,the requested increase of$.08 per gallon or 5.5% is reasonable. Thank you for your consideration. We value our supplier relationship with the CCUA both as a customer and business partner. We look forward to the opportunity to serve your 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, c H. Allman General Managers MANUFACTURERS OF U:1)L D A CHLOR (800) ODYSSEY www.odysseymanufacturing.com U.S.BUREAU OF LABOR STATISTICS Databases, Tables & Calculators by Subject ': Special Notices 4/25/2024 Change Output Options: From:2015 To:12025 (31).• More Formatting Options• include graphs include annual averages Data extracted on:February 14,2025(6:14:41 PM) Consumer Price Index for All Urban Consumers(CPI-U) Series Id: CUSR0000SA0 Seasonally Adjusted Series Title: All items in U.S.city average,all urban consumers,seasonally adjusted Area: U.S.city average Item: All items Base Period: 1982-84=100 Download: Er ' ' ,x ;Year Jan I Feb j Mar, Apr May Jun Jul i Aug Sep Oct Nov , Dec HALF1 HAL,F2I 2015 234.747 1235.342 235.976 236.222 i 237.001 237.657 1238 034,238.033,237.498 237.733 238.017 i 237.761 2016 237.652!237.336 i 238.080 238.992 I 239.557 240.222 i 240.101 240.545;241.176 241.741 1242.026 242.637 'F20.17 243.618 244.006 j 243.892 244.193 244.004 244.163 t 244.243 4 245.183 246.435 246.626 247.284 247.805 2018 248.859 249.529 i 249.577 250.227 250.792 251.018 t 251.214 251.663 t 252.182!252.772 252.594 j 252.767 12019 252.561 253.319 254.277 255.233 255.296 I 255.213 g 255.802 256.036;256.430'257.155 257.879 258.630 2020 259.127 259.250 258.076256.0321255.802i257.042;258.352I259.316;259.997j260.3191260.911262.045 12021 262.639 263.573:264.847 266.625 268.404 s 270.710 271.965 I 272.7521 273.942 276.5281278.824 280.806 2022 282.542E 284.525)287.467 288.582 291.299 i 295.072 I 294.940 I 295.162 1296.421 1297.979 I 298.708 298.808 1 2023 1 300.456'301.476 i 301.643 302:858 303.316 304.099 L 304.615`306.138 s 307.374{307.653'308.087'308.735 12024 309.794'311.022 312.107 313 016 313 140,313.131E 313.566 1314.1311 314 851 1315.5641316.449 317.603 2025 319.086 . 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 2 ,mot c% Clay County Utility Authority Working together to (70 3176 Old Jennings Rd. protect public health, Middleburg,Florida 32068-3907conserve our natural Telephone(904)213-2413 resources,and create / Facsimile(904)213-2436 long-term value for our ratepayers. February 6, 2025 Mr. Craig N. Thatcher Thatcher Chemical of Florida, Inc. PO Box 27407 Salt Lake City,UT 84127 RE: Fourth Renewal of ITB No. 20/21-A5 Chemical Supplier Contract for Sodium Bisulfite Dear Mr. Thatcher: The above referenced contract is scheduled to expire on March 7,2025.The contract terms allow for a renewal period of 12 months, contingent upon the mutual agreement of both parties. The Clay County Utility Authority(CCUA)is hereby providing written notice of interest in renewing the existing contract for an additional 12-month period, continuing from March 8, 2025 - March 7, 2026. Please provide any requested price adjustments to accompany this letter for the contract renewal. Please notify CCUA and advise if you agree and would like to renew the existing contract for an additional 12 months before February 14,2025 by signing this letter below and returning it to our office. CCUA appreciates your cooperation. We look forward to continuing business with you and your organization in the coming years. Sincerely, CLAY COUNTY UTILITY AUTHORITY ACCEPTANCE: YES) NO OTHER �Q wR�Pa.a, T a ch r emical of Florida, Inc. Darrin W==aoU f."=Park9r,EW YW 49P..*.aWY.ag Ramon'am'�au�rof a r, Parker Wro'20]5.02.0811:]BU� Fatll POF EeMor Var91gf:12 19,19 Darrin G. Parker E: Contract& Procurement Specialist Tl' LE: /dp \3 Z� DATE: cc: Jeremy D. Johnston Darryl Muse