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HomeMy WebLinkAboutDocumentation_Regular_Tab 12_10/14/2021Agenda Item #12. Regular Council STAFF MEMO Meeting: Regular Council - Oct 14 2021 Staff Contact: Matthew Hammond, Utilities Department: Utilities Director Authorize Renewal of Purchase Agreement and Purchase Order with Odyssey Manufacturing Company for Purchase of 50% Sodium Hydroxide t�l� �'I I"Im\ �� !� i The Utilities Department has the need to purchase 50% liquid sodium hydroxide throughout the year for use in the water treatment process. Sodium hydroxide is used to adjust the pH of treated water and to remove hydrogen sulfide from the water in the aeration towers. To ensure the lowest possible price, the Village issued a Notice of Solicitation to solicit quotes for the purchase of 50% liquid sodium hydroxide [RFQ# UTIL 04-19] and subsequently awarded a 1-year contract to Odyssey Manufacturing Company at the January 9, 2020 Regular Council Meeting with the mutual option for two (2) additional one-year renewals. Addendum No. 1 was exercised on November 12, 2020 and expires October 1, 2021. The second of two renewal options is requested (Addendum No. 2) at a rate of $745 per dry ton ($175 per dry ton increase). The second and final renewal will expire on October 1, 2022. Within the FY 2022 budget, the Village Council approved $248,500.00 for for the purchase of chemicals used in the water treatment process. As a result, a purchase requisition is requested in the amount of $65,000.00 with Odyssey Manufacturing to purchase approximately 87 dry tons of sodium hydroxide throughout the year using the pricing in the proposed Addendum No. 2. BUDGET INFORMAT BUDGETED AMOUNT: AVAILABLE AMOUNT: EXPENDITURE AMOUNT: $2487500.00 $2487500.00 $657000.00 Additional Budgetary Information: Funding Source(s): Water Enterprise Fund Authorize Addendum No. 2 for the renewal of the purchase agreement with Odyssey Manufacturing Company for the purchase of 50% liquid sodium hydroxide and an associated purchase order for $65,000 for Fiscal Year 22. ATTACHMENTS: 0 Proposed Addendum No. 2-- Sodium Hydroxide - Odyssey Manufacturinggada Page 95 of 293 Agenda Item #12. The following documenti*s presented in a non= ADA compliant format. Please contact the Village Clerk's office if you would like to receive an ADA compliant version of this document. Page 96 of 293 Agenda Item #12. SECOND ADDENDUM TO THE AGREEMENT FOR PURCHASE OF SODIUM HYDROXIDE BY AND BETWEEN THE VILLAGE OF TEQUESTA AND ODYSSEY MANUFACTURING COMPANY THIS SECOND ADDENDUM, made and entered into this day of October 2021, effective retroactively to October 2, 2021, by and between the Village of Tequesta, Florida, a municipal corporation organized and existing in accordance with the laws of the State of Florida with offices located at 345 Tequesta Drive, Tequesta, Florida 33469, hereinafter referred to as the "Village", and Odyssey Manufacturing Company, a Florida corporation with offices located at 1484 Massaro Blvd., Tampa, Florida 33619, hereinafter referred to as the "Contractor" (and collectively the "Parties"), both of whom agree that the current Agreement for Purchase of Sodium Hydroxide, pursuant to RFQ No. UTIL 04-19, (hereinafter the "Agreement"), made and entered into by the Village and the Contractor on the 91h day of January, 2020, is hereby amended in the following manner: Section 1: The above -referenced Agreement regarding Contractor's annual provision of up to 100 dry tons of 50% food grade (NSF Approved) liquid sodium hydroxide for the Village's potable water treatment process is extended to run from October 2, 2021 through October 1, 2022. This is the second of two (2) one-year extensions of the term of the Agreement as permitted by the provisions of the Agreement at Section 3, titled `Term; Termination; Notice.' Section 2: The above -referenced Agreement shall be extended at the same terms and conditions except for the Agreement's pricing which upon mutual agreement by the Parties shall be increased from Five Hundred Seventy Dollars ($570.00) to Seven Hundred Forty-five Dollars ($745.00) per dry ton of 50% sodium hydroxide, as provided in Contractor's July 13, 2021 letter, which is fully incorporated into this Second Addendum and attached hereto as Exhibit "A". Section 3: All other Sections and recitals of the above -referenced Agreement shall remain in full force and effect. Section 4: This Second Addendum shall be attached to the current Agreement and shall become a part thereof. Page 1 of 2 Page 97 of 293 Agenda Item #12. IN WITNESS WHEREOF, the Contractor and the Village have signed and executed this Second Addendum with an effective date as noted above. ATTEST: Corporate Secretary ATTEST: Lori McWilliams, MMC Village Clerk Page 2 of 2 ODYSSEY MANUFACTURING CO. By: Patrick H. Allman, General Manager (Corporate Seal) VILLAGE OF TEQUESTA By: Frank D'Ambra III, Mayor (Seal) Page 98 of 293 Agenda Item #12. Exhibit A Page 99 of 293 Agenda Item #12. ODYSSEY MANUFACTURING CO. July 13, 2021 Mr. Nate Litteral Water Treatment Plant Superintendent Village of Tequesta 901 North Dixie Highway Tequesta, Florida 33469 Re- CONTRACT TO SUPPLY BULK SODIUM HYDROXIDE TO THE VILLAGE OF TEQUESTA UTILITIES DEPARTMENT — RFQ UTIL 04-19 Encl- (1) Olin Chloralkali Products and Vinyls Supply Letter dated August 5, 2021 Dear Nate, As you know, Odyssey Manufacturing Co. "Odyssey" and the Village of Tequesta entered into an Agreement dated January 9, 2020 whereby Odyssey would supply sodium hydroxide (a.k.a. caustic soda) to the Village of Tequesta's water treatment plant. This contract ends on October 1, 2021 (it was renewed once already) and has one more renewal remaining. Odyssey agrees to renew the contract for the final time effective October 2, 2021 through October 1, 2022 at a new delivered price of $745 per ton. As you know, we are in a period of unprecedented inflation in this country not seen since the 1970's. Chemical pricing and costs in particular have gone through the roof over the past six months. The current pricing is $570 per dry ton. The new pricing of $745 per ton represents only the increases that have been passed onto us this year by our supplier, Olin (see Enclosure (1)). Olin is the largest chemical manufacturer in the world. There are no sodium hydroxide manufacturers in Florida, and we have rail terminals in Tampa and Lantana where we get the product shipped to us by railcar. We break the product down into on -site tanks and then ship it out by our tanker fleet. In addition, sodium hydroxide is in very short supply. We have allotments from Olin based on our last year's volume and thus have guarantees behind us to be able to supply the Village of Tequesta. Thanks for your consideration. Please do not hesitate to contact me at (813) ODYSSEY or cellular (813) 335-3444 if I can be of further assistance. We appreciate your support and continued business. <2ly) 'Fk H. Allman General Manager MANUFACTURERS OF U LL' °�CH L Ft (800) ODYSSEY www.odysseymanufacturing.com MV`D *'W'TAMPA. FL 33619 e (813) 635-0339 *IF. F&A XIRW•• Agenda Item #12. vilxl.M CHLOR ALKALT PRODUCTS AND VINYLS August 5, 2021 Mr Pat Allman Odyssey Manufacturing Company 1484 Massaro Blvd Tampa, FL 33619 Subject: CAUSTIC SODA INCREASES -2021YEAR-TO-DATE Dear Pat: 490 Stuart Road NE, Cleveland, Tennessee 37312 423/336-4850 * 423/336-4830 Internet Address: www.olinchloralkali.com Please accept this letter to confirm that the cumulative total of the price increases we have implemented to you on caustic soda 500/© for 2021 is $175/DST. Please let me know should you have any questions or need additional information. Yours truly, Account Manager Page 101 of 293