Agenda Information Sheet
DEPARTMENT: Water Production
CM/ ACM: Jon Fortune, 349-8535
Date: May 22, 2017
SUBJECT
Title
Consider recommending adoption of an ordinance awarding a contract under the Buy Board program for the purchase of Liquid Caustic Soda for the Water Production Plants, City of Denton as awarded by the Texas Association of School Boards (TASB) Purchasing Cooperative Buy Board Contract # 526-17; providing for the expenditure of funds therefor; and providing an effective date (File 6458- awarded to Petra Chemical, LLC, in the annual not to exceed amount of $260,000 for a one year not-to-exceed amount of $260,000).
Body
BACKGROUND
The chemicals required to treat Denton's drinking water and wastewater were bid annually through Request for Proposal 5725 (RFP 5725), awarding numerous vendors, contracts for various chemicals. Circumstances related to the manufacturing and supply of liquid sodium hydroxide has forced the market price for sodium hydroxide to go up dramatically and in-turn forced the suppliers to increase their price for sodium hydroxide. Due to these factors, in March 2017, when the contracted vendor was asked to renew their contract, they proposed a 34% price increase for this chemical alone. Under State Local Government Code 252.048, Change Orders, the original contract price may not be increased under this section by more than twenty-five (25%).
Water Treatment continues twenty four hours a day and Liquid Caustic Soda is part of this process for corrosion control. Therefore, quotes were obtained in an effort to enter into another contract for the next 11 to 12 months until a new Request for Proposal of Water Chemicals can be issued (as the term for RFP#5725 will expire in April 2018). Petra Chemical has the lowest price for the 50% Sodium Hydroxide at $0.2533/dry pound. Based on the total dry pounds purchased in fiscal year 2015-16 and adding additional shipments for increases in total water forecasted to be treated, a to...
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