PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #9.J
SUBJECT/TITLE:
CONTRACT AMENDMENT #1 WITH OLIN CORPORATION FOR SUPPLY OF
SODIUM HYPOCHLORITE
RECOMMENDATION:
Adopt a Resolution authorizing the City Manager to execute Amendment #1 to the existing Professional Services Agreement with Olin Corporation, dba Olin Chlor Alkali Products and Vinyls (Olin Corp) to supply sodium hypochlorite in an amount not to exceed $126,360 for Fiscal Year 2024.
BACKGROUND:
Sodium hypochlorite is used in the City’s Wastewater Treatment Plant as a source of chlorine for disinfectant as part of the treatment process. In June of 2022 through a competitive bid process, the City entered into a contract with Olin Corp for one year with three options to extend the agreement for an additional one-year period.
The initial contract was authorized by City Council on June 7, 2022 for $2.083 per gallon, not-to-exceed an amount of $103,109 in FY 2023. Staff requested a quote from Olin Corp to continue to provide sodium hypochlorite for FY 2024. The quote is for $2.34 per gallon plus 8% sales tax for a total cost of $2.5272 per gallon, not to exceed $126,360.
Conclusion and Recommendation
Staff recommends that the Council adopt a Resolution (Attachment 1) authorizing the City Manager to execute Amendment #1 to the existing Professional Services Agreement with Olin Corp to supply sodium hypochlorite in the amount not to exceed $126,360 in FY 2024.
FISCAL IMPACT:
The fiscal impact of approving the attached Resolution is $126,360 in the Wastewater Enterprise Fund. The FY 2024 budget includes sufficient funds in the Wastewater Enterprise Fund chlorine account for the purchase of sodium hypochlorite.
ALTERNATIVES:
1. Do not authorize the Resolution; provide staff with direction on how to proceed.
ATTACHMENTS:
1. Resolution
1.A Exhibit A to Resolution: Amendment #1
Prepared by: Meeting Date: June 6, 2023
Erin Olsen, Management Analyst
Submitted by: Benjamin A. Fine, P.E., Director of Public Works/City Engineer Interim City Manager Approval:
Council Agenda 6-6-2023 9.J-1
PAGE 1 OF 1
R-2023-___
RESOLUTION NO. R-2023-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT #1
TO THE EXISTING PROFESSIONAL SERVICES AGREEMENT WITH OLIN
CORPORATION, DBA OLIN CHLOR ALKALI PRODUCTS AND VINYLS (OLIN
CORP) TO SUPPLY SODIUM HYPOCHLORITE IN AN AMOUNT NOT TO EXCEED $126,360 FOR FISCAL YEAR 2024
WHEREAS, sodium hypochlorite is used in the City’s Wastewater Treatment Plant as a source of chlorine for disinfectant as part of the treatment process; and WHEREAS, in June of 2022 through a competitive bid process, the City entered into a contract with Olin Corp for one year with three options to extend the agreement for an additional one-year period; and
WHEREAS, staff requested a quote from Olin Corp to continue to provide sodium hypochlorite for FY 2024; and
WHEREAS, the quote is for $2.34 per gallon plus 8% sales tax for a total cost of $2.5272 per gallon, not to exceed $126,360.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby authorizes the City Manager to execute Amendment #1 (Exhibit A) to the existing Professional Services Agreement with Olin Corp to supply sodium hypochlorite in the amount of not to exceed $126,360 for Fiscal Year (FY) 2024.
UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 6th day of June 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
Council Agenda 6-6-2023 9.J-2
Attachment 1Council Agenda 6-6-20239.J-1
AMENDMENT # 1
to the
JUNE 29, 2023 AGREEMENT BETWEEN THE CITY OF PISMO BEACH
AND OLIN CORPORATION, DBA OLIN CHLOR ALKALI PRODUCTS AND VINYLS Pursuant to the June 29, 2023 Agreement for Professional Services between the City of Pismo Beach, hereinafter referred to as “City,” and Olin Corporation, dba Olin Chlor Alkali Products and Vinyls, hereinafter referred to as “Vendor,” City and Vendor hereby agree as follows:
1.Additional services shall be performed as set forth in the proposal dated May 15, 2023, which is attached hereto and by this reference made a part hereof.
2.Compensation for and timing of the additional services shall be as set forth in the referenced proposal. Compensation for the additional services shall not exceed the amount of $2.5272 per gallon not to exceed one hundred twenty-six thousand three hundred sixty dollars ($126,360), without prior written approval of the City.
3.The revised fee under the June 29, 2023 contract, plus this addendum, is two hundred twenty-nine thousand four hundred sixty-nine dollars ($229,469).
4.All other provisions of the Supply of Sodium Hypochlorite agreement between City and Vendor shall remain in full force and effect.
CITY:
City of Pismo Beach, a Municipal Corporation
Signed:
Name: Benjamin A. Fine, P.E.
Title: Director of Public Works/City Engineer
Dated: ________________________________
Signed:
Name: Jorge E. Garcia
Title: Interim City Manager
Dated: ________________________________
ATTEST:
Signed:
Name: Erica Inderlied
Title: City Clerk
APPROVED AS TO FORM:
Signed:
Name: David M. Fleishman
Title: City Attorney
VENDOR:
Olin Corporation, dba Olin Chlor Alkali Products
and Vinyls
Signed:
Name: ________________________________
Title: _________________________________
Dated: ________________________________
Address for giving notice:
(if changed from prior agreement)
______________________________________
______________________________________
Email address for official communications:
(if changed from prior agreement)
______________________________________
Vendor Representative:
(if changed from prior agreement)
Name/Title: ____________________________
Attachment: Cost Proposal
Council Agenda 6-6-2023 9.J-3
Attachment 1.A
Form Rev.: Jun.-2022
490 Stuart Road NE, Cleveland, Tennessee 37312
423/336-4850 • 423/336-4830
Internet Address: www.olinchloralkali.com
May 15, 2023
Billy Haas, Utilities Manager
City of Pismo Beach Public Works Department
550 Frady Lane
Pismo Beach, CA 93449
805-773-7075 Direct
Subject: ANNUAL PROPOSAL (SEMI-ANNUAL PRICING) – 12.5 WT% SODIUM HYPOCHLORITE Dear Billy:
Following our recent discussions, Olin Corporation, for and on behalf of itself and its subsidiaries (“Olin”) is pleased to provide City of Pismo Beach Public Works Department (“Buyer”) with our proposal to supply 12.5 wt% Sodium Hypochlorite to your wastewater facility. Our proposal is outlined below:
PRODUCT & GRADE: 12.5 wt% Sodium Hypochlorite, meeting the West Coast Water Treatment Specification attached hereto as Addendum A
QUANTITY: 100% of Buyer's requirements estimated to be 50,000 gallons per year, and not to exceed 125% of estimate in any contract year without Olin’s prior approval.
DELIVERY PERIOD: 07/01/2023 through 6/30/2024. Extensions upon mutual agreement PRICE & FREIGHT Sodium Hypochlorite, 12.5%
Min. delivered quantities 7/1/2023 – 12/31/2023 Semi-Annual Pricing Full Truck Load $2.34/gal + Applicable Taxes*
New pricing effective 7/1/2023 and will be negotiated semi-annual based on market conditions Note: Pricing is plus U.S. Superfund Excise Tax Surcharge ($0.004/gal. for 12.5 wt% bleach) CONTAINER: Olin's provided Tank Truck
ORIGIN: Olin’s Primary Shipping Point, Pittsburg, CA or other preferred shipping point DESTINATION: Buyer’s Wastewater Treatment Facility in Pismo Beach, CA PAYMENT TERMS: Net thirty (30) days from date of invoice ADDITIONAL PROVISIONS: •Seller reserves the right by written notice given at any time before shipment, to increase the price, if there is any increase in the price or cost of the product(s) to Seller due to increases in the cost of raw materials (including energy), labor or transport or any other causes beyond the control of Seller, provided that Seller gives advance notice to Buyer of any such price adjustment including reasonable explanations for this adjustment. •This proposal is made subject to the execution by the parties of a sales contract in a form to be agreed.
•Tank truck detention charges incurred at destination shall be for Buyer’s account.
Council Agenda 6-6-2023 9.J-4
Attachment 1.A
Supply Proposal Page 2
•Product shipped shall meet Olin’s specification at delivery, copy of which is attached. •Olin reserves the right to cancel this proposal at any time prior to mutual agreement and execution by the parities of a sales contract, and in any event this proposal may expire if sales contract is not executed by Buyer on or before the 15th day following the date hereof.
We trust the above meets with your approval. Should you require any assistance, or have any questions concerning this proposal, please feel free to contact us at your earliest convenience.
Yours truly,
Jason Cho
Jason Cho
Account Manager
Attachments: West Coast Water Treatment Specification
Council Agenda 6-6-2023 9.J-5
Attachment 1.A