HomeMy WebLinkAboutItem 18 - Water and Wastewater Chemicals J`iT���� ��� ��..,_�„�
MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
�`�`""'" FROM: BRUNO RUMBELOW, CITY MANAGER �.��
MEETING DATE: MAY 20, 2008
SUBJECT: APPROVAL TO RENEW AN ANNUAL CONTRACT TO
PROVIDE WATER AND WASTEWATER CHEMICALS FOR THE
WATER AND WASTEWATER TREATMENT PLANTS
RECOMMENDATION:
City Council to consider renewal of an annual contract award to DPC Industries, Altivia
Corporation, Pencco, Inc., Harcross Chemicals and Fort Bend Services for Water and
Wastewater Chemicals used by the Water and Wastewater Treatment plants. The total
annual cost will be limited to the budgeted amount for this service.
FUNDING SOURCE:
Funds are available for this purchase in accounts 200-42205-531-2 Utility Eriterprise
Fund/Grounds Maintenance/Water Treatment and 200-42205-530-2 Utility Enterprise
Fund/Grounds Maintenance/Wastewater Treatment.
�.
BACKGROUND:
Bids were taken in accordance with Local Government Code Chapter 252, Subchapter
B, Section 252.021 (a) and Section 252.041 (a). The bid advertisement posted in the
Fort Worth Star-Telegram and the Grapevine Sun on March 3, 2005 and March 10,
2005. Staff issued bid documents to 15 contractors. Council approved the original
contract on April 5, 2005. There were four, one-year options to renew the contact. If
approved, this would be the third renewal.
The invitation requested fixed annual pricing to provide various water and wastewater
chemicals used in the daily operations of the Water and Wastewater Treatment plants.
Under the original contract with each vendor, price increases may only be considered at
the end of each contract period. Each of the current contract vendors were contacted by
Staff to see if they would renew their contracts and if there would be any price increases.
All vendors responded with intention to renew the contracts. During the contract year,
unprecedented rises in the cost of fuel and transportation costs affected chemical prices.
Due to the present market situation pertaining to Sulfuric Acid and Copper Sulfate (that
are blended together to create the chemical Aqualum), Altivia Corporation is requesting
to use a pricing benchmark from the Pentasul Report for tracking market pricing for
Sulfuric Acid and a three-month published average from LME (London Metal Exchange)
settlement price for Copper Sulfate. Attached is a copy of the requested price increase
for each chemical.
Staff researched other current chemical contracts from the City of Fort Worth, City of
Denton and City of Lewisville, and confirmed the attached pricing is of fair market value.
The overall price increase is 13.3%.
Staff recommends renewal of an annual contract award to DPC Industries, Altivia
Corporation, Pencco, Inc., Harcross Chemicals and Fort Bend Services.
GR
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April 15, 2008
City of Grapevine
P.O. Box 95104
Grapevine, TX 76099
Attn: Gary Roscher
::�: 'P.�r.�:x��! �f r'e*�±*.-ae±#?21-204�-17152
Contract for Annual Supply of Liquid Alum/Copper Sulfate Blend
(AQUALUM'" 2622)
Dear Mr. Roscher:
ALTIVIA wishes to extend the current AQUALUM� 2622 Contract #221-2005-171�2,
with the City of Grapevine for an additional one (1) year period, beginning May 15, 200�3
and ending May 1�, 2009.
We would like to renew the contract at the new price of$37�/llT. Bearing in mind the
present market situation pertaining to Sulfuric Acid and Copper Sulfate pricing, we
would lilce to instate a quarterly price review clause in this contract. The quarterly price
review will be done at the beginning of each calendar quarter and will provide the basis
for price increase/decrease based on raw material cost changes.
We could use the Pentasul report as the basis for tracking market price for Sulfuric Acid
and a 3 month average published LME (London Metal Exchange) settlement price for
Copper Sulfate as the benchmarks for price increases/decreases.
Flease 1G'L l.lJ 11U�� U1 Vlli f� �vVCil ivl iii:iii/iiri iui, '�'i ° :°:�:°:a� ��K � P ii� i
�� Y 'Yi' b N�: C., � L.S_ t�'e �n,�trart
agreement.
ALTIVIA has had a long standing relationship with the City of Grapevine, and we would
like to continue to provide our quality products and services to your Cit��.
Please feel free to contact me if you have any questions or concerns.
Sincerely,
ALTIVIA
��-��..-� <:'" r'� '�%��,, ..<J
�
- ,,:
<:..._..._...-.
Wade Khoury
General Manager—Aluminum and Specialty Chemicals
l�j�t` C�:_h:� m��r,�,��.I����)�� C�����(��1�.F,.'_�'J
..�t: � :u �.
A.�� , 17 , 2008 9 � 31AM PENCCO No • 0722 P , 2
PENCCO, INC.
Fioneer Engineeri�g Chemical Cofnpuny
Renewal Offer
Date� April I7,20�8
'1'0� City of Grapevine
Attn.. Gary Roschcr
Fa�c: 8 a 7-4 z 0-306b
�'rom: Sarah Duffy
�te: �luoride Contract,Bid no. 221-2005
Pencco can offer the following pricc for thc rcnewal of the above zef�rez'►ced eontraet�
Current Price: $).849/gallon
New Friee� $3_42/gallon(84.9% increase)
Basis: As Is–no adjustment
I'ayment'1'emis: 1 %% - 10 Days,nct 30 Days ,�.
Pricing Vailidily: Effc:ctivc;5/15/08-5/15/09
Annual Usaac: 20 toz�s approx.
Delivery Amt..' 40,Opp 1�minimurn–short load fee to app].y is smaller qty is ordered
F_O.B.: Grapevine,TX
A.R.U.: 3 weeks approx.
17emurrage:. 2 hours free unloading; t.hcrc:a.ftcr, 55.40 pez'k�our
�'lease give nae a call if you have any questions.
Thank you,
` �,
S�rah DuI'fy
Zf this z'ez�.ew�l offer. nneets your�pprpval,�lease sign helow$nd fax to 974-885-32U$.. Signed e.�ctension
must be returr�ed�rior to ordering..
'!�e above price, terms avd conditions are accepted by'
Nazx�e and Tztle o.f Authori�ed R�.. (Print}
_ ..,,.T ._..—
Signature Dat.c,
Pd BOX 600 • SAN FELIPE, TX 77473
PHON�: 974-865-pQ0$ � $00-R64•1742 • FA}C: 979-RR5-3208
INFOC�PENCCO..COM
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H:�rCrqs Ch�+micats tnc �
2b27 Wcir Sc.
Ua11av,T'X 75:!1� H A R C R C� �
Tcl 2'I 4/fi3R_F(t;i4
�A3C 2'14/h:3� ?7'�
City o f Grapevine
Attn: �rary�tosckzex
Purch;�sing Coordinator
Re: Crty of Crrapevine Contract-Wastewater and uiater Txeatmcnt Chcmicals
beas P�fr. Rc�scher,
Harcrc�s Chemicais, Inc. is intez��sCed in renewuxg the contract from May i.5, 2Q0$
tkuou��May t4, 2004.There are price adjustments tc, foIlow that axe d.uc to the high
increa.�s af raw rnaterial costs azid the continuing .rising of fucl and energy c�sts. P'i.ease
�ccept the �ollowing adjustments:
-Liqui:l Cb�orine Bleach Oad price $.47/lb New price $.47/l.b
-Calci.�m Hypochlo�r�te Old price$1.19/1b New price $1.21/Ib
-I'otas_,ium Permangar�ate �ld price $2.32/1h New pxice $2.34/lb
-SodiL m Hydr��ide Solution Qld px ice $.272/Ib New price $.355/Ih
Please let me knaw if you ha.ve any questi.ans. Thank you ti-ezy much for your business.
Sincez�Iy,
'���.+6.._
Martir,.Morgart
l�egianal Manager
FORT BEND SERVICES, IN�.
MAILING ADDRESS 13303 Redfish Lane
P.O. Box 1b88 Stafford,TX 77477 °`�`�
Stafford,TX 77497 Office (281)261-5199
(800)933-3678 Toll Free FBStNC. Fax (281) 261-2295
Waste & Water Treatment Specialists
April 23, 2008
City of Grapevine
Mr. Gary Rocher
Purchasing Coordinator
P. O. Box 95104
Grapevine, Texas 76099
Reference: City of Grapevine Contract—Water and Wastewater Chemicals
Dear Mr. Rocher,
Fort Bend Services, Inc. thanks the City of Grapevine for being a loyal customer. We greatly appreciate
your business.
Thank you for inviting FBS to renew their contract with the City. We would be pleased to renew the
contract for an additional year. Since we last negotiated the contract with the City, we have been given
two price increases for the DADM (water piant) and one increase for the waste water treatment
polymer. Therefore, it wiil be necessary for us to increase our prices to the City.
The foilowing prices are firm for one year:
Product Container Cost/pound Application
FBS 521 N 450 pound plastic drums $0.62/ib delivered Water plant
FBS 5600 2200 pound totebin $1.42/Ib delivered Waste plant(BFP)
FBS 7802 2200 pound totebin $1.34/Ib delivered Waste plant(GBT)
Please note that the above pricing is delivered, firm for one year and includes the cost of drum and
totebin disposai. Should you have questions about the price increases, piease lei me know. i he majcr
force for the increases is the rising cost of crude oil. However, I would be happy to share with you more
detailed information about the driving factors.
Thank you again for inviting Fort Bend Services, Inc. to renew their contract with the City of Grapevine.
I hope the above pricing is acceptable.
Sincerely, ,
� �� ,�/� "� �!=%t.�_
.r,li��-C,-C;� '�--G '
� �`,
Kathy 11�ha ry
Fort Be Services, Inc.
(713) 899-7975 Cell
(281) 261-5199 Office
.,..m:.,��..�k,.
��: _. � :u . .
04/21/2008 10: 37 8176414799 DPC CLEBURNE PAGE 02/02
C� C DPC INQUSTRIES, �NC.
�
6b1 West Industrial Blvd, (76031)
P.Q. Box 59
Cleburne, 7exas 76033
(817) 641-4712
Metro($17) 55�-4860
Fax(817}641-4798
�,P�l zl, �oos
City of Grap��rine
�.Q. Box 95104
Grapevine, TX 7b099
Arin.' Gary Roschcr
Dear Gary:
Thank ydu£or taking thc time to cozztact DPC Industries coz�cerning your water treatment
chemieals renewal. We have k�ad sarne chan�cs rcce�it�y affectiing thc anhydrous
ammonia market. Our industry is �xpericncing suggly shprtages due to expanded usage in
the agricul.ture markets.
Per you.r request, U�C Tndustries is preparcd to re�.ew for a 12-month period at the
follvwing prices:
Liqu�d Chlorine 1-tun container �5�91ton
An�aydxaas AmmnnYa LTL bu�k lb $ .b6/1b
Eacl�.of t11e above priees is quoted Delivered to your Grape�ine, TX facility via D�'C
truck or approved caz�riex. 4zagi.nal terms and conditions will apply to t]�is tetm.beginning
5-15-08 and ending 5-14-t}9.
Plcase call me at 214-704-2780 if yau have any q�estians or nccd any further in,f.ormation
regardir�g�hi.s rer�ewal.
Sincerely, �--�"`�
c^--�
��-� �����f
Terry •' eman --�
DPC Yndustri.es, J�c.
Cleburn�I�istricC