TO: Honorable Mayor & Members of the North Port Commission
FROM: Peter D. Lear, CPA, CGMA, City Manager
TITLE: Amendment No.1 for RFB No. 2018-30, Water Treatment Chemicals - Aluminum Sulfate, to Chemtrade Chemicals US, LLC., in accordance with the unit prices on an ‘as required’ basis for an additional $45,000, for a total amount of $130,000.
Recommended Action
Approve Amendment No.1 for RFB No. 2018-30, Water Treatment Chemicals - Aluminum Sulfate, to Chemtrade Chemicals US, LLC., in accordance with the unit prices on an ‘as required’ basis for an additional $45,000, for a total amount of $130,000.
Background Information
On February 1, 2018, the City Manager approved RFB No. 2018-30 with Chemtrade Chemicals US, LLC for the purchase of Aluminum Sulfate for the Water Treatment Plant. This RFB was a one-year purchase with two additional one-year renewals to be approved by the City Manager. On January 22, 2019, the City Manager approved the first renewal, which included a negotiated price increase from $204 to $237 per dry ton. This price increase was due to the rising costs in raw materials that are used in the production of Aluminum Sulfate as well as significant increases in freight seen by all industries.
In addition to the cost increase, unexpected rainfall and favorable source water conditions have led to an increase in water production at the surface water plant. Because of increased operation of the surface water plant, more aluminum sulfate than originally estimated has been purchased to date.
The remaining balance of the original blanket approval of $85,000 is not sufficient to cover Aluminum Sulfate purchases for the remainder of the current fiscal year. Therefore, Utilities is requesting an additional $45,000 to cover the unexpected increases in both cost and quantity needed.
Strategic Plan
Promote sustainable growth and development, while maintaining or enhancing quality of life in our City.
Financial Impact
|
Account |
Estimated Expenditures |
|
420-6061-533.52-05 |
$130,000.00 |
Procurement
Chemtrade Chemicals US, LLC. 90 East Halsey Road Parsipanny, NJ 07054
Attachments:
1. Amendment Form
2. RFB No. 2018-30 Renewal, Award, Solicitation and Addenda
3. Florida Division of Corporations Document
Prepared by: Nicole Brown
Department Director: Rick Newkirk