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ITEM 57 |
City Council Memorandum Public Works & Utilities Memo No. UA23-027
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Date: |
September 22, 2022 |
To: |
Mayor and Council |
Thru: |
Joshua H. Wright, City Manager Andy Bass, Deputy City Manager John Knudson, Public Works and Utilities Director |
From: |
Danny Sargent, Water Systems Manager |
Subject: |
Agreement No. PW1-885-4313, Amendment No. 1, with Aquafit Chlorination Systems, LLC; DPC Enterprises, L.P.; Hill Brothers Chemical Company; Momar, Inc.; Polydyne, Inc.; Salt Works; Solenis, LLC; Thatcher Company of Arizona, Inc.; Univar Solutions USA, Inc.; and Waternuts Aquatic Enterprise, Inc., dba Commercial Pool Repair, for the Purchase of Water Treatment Chemicals |
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Proposed Motion: |
Move City Council approve Agreement No. PW1-885-4313, Amendment No. 1, with Aquafit Chlorination Systems, LLC; DPC Enterprises, L.P.; Hill Brothers Chemical Company; Momar, Inc.; Polydyne, Inc.; Salt Works; Solenis, LLC; Thatcher Company of Arizona, Inc.; Univar Solutions USA, Inc.; and Waternuts Aquatic Enterprise, Inc., dba Commercial Pool Repair, for the purchase of water treatment chemicals, in a combined amount not to exceed $11,193,910, for a one-year term, August 15, 2022, through August 14, 2023. |
Background/Discussion: |
These agreements will be used to purchase bulk and packaged water and wastewater treatment chemicals for use at the City's treatment facilities and swimming pools. The Public Works & Utilities Department will use these agreements for water, wastewater, reverse osmosis, and well systems treatment. The Community Services Department will use these agreements for swimming pool chemicals. Chemicals used by the Ocotillo Brine Reduction Facility are paid for by Intel. A related item for purchase of water treatment chemicals also appears on this agenda. Of the two related items, one includes City bid vendors and the other uses cooperative contracts. Use of these two procurement methods collectively provides the City with purchasing flexibility to broaden choices and avoid supply chain issues. |
Evaluation: |
On August 12, 2021, City Council approved agreements with Aquafit Chlorination Systems, LLC; DPC Enterprises, L.P.; Hill Brothers Chemical Company; Momar, Inc.; Polydyne, Inc.; Salt Works; Solenis, LLC; Thatcher Company of Arizona, Inc.; Univar Solutions USA, Inc.; and Waternuts Aquatic Enterprise, Inc., dba Commercial Pool Repair, for the purchase of water treatment chemicals, for a one-year term, with the option of up to four one-year extensions. The contractors have agreed to extend the agreements for one year with significant price increases. Inflation and supply chain issues have taken hold of chemical markets, leading all contractors to request an average of 44% higher prices. These increases are due primarily to raw material shortages and chemical production facility closures. Continued market volatility is also caused by higher wages, fuel and freight costs, and import delays. The amount requested by each cost center has an added contingency escalator to account for volatility in the chemical markets. Additionally, numerous suppliers have been awarded to ensure continuity of operations in the event of a supplier shortage. Staff recommends extension of these agreements for the term of August 15, 2022, through August 14, 2023. This is the first extension of the original agreement. |
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Fiscal Impact |
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