A22102.Supplemental SR.JD
CITY OF SIMI VALLEY
MEMORANDUM
November 7, 2022
TO: City Council
FROM: Department of Public Works
SUBJECT: APPROVAL OF SECOND CONTRACT AMENDMENTS FOR THE
PURCHASE OF CHEMICAL SUPPLIES FOR THE CITY OF SIMI
VALLEY’S WATER QUALITY CONTROL PLANT (WQCP),
SPECIFICATION NO. SV 22-04, AND APPROVAL OF SUPPLEMENTAL
BUDGET REQUEST
Subsequent to the preparation of the staff report, staff was advised that Olin Corporation has requested that the City include the subsidiary supplier related to this contract to all agreements with the City. In the City’s case that supplier is Pioneer America LLC. This request is due to administrative changes to Olin Corporation’s internal financial software and account management system . Attached is the supporting documentation. The contract has been amended to reflect same.
____________________________________
Ronald K. Fuchiwaki
Public Works Director
Prepared by: Ronald K. Fuchiwaki
Attachment A - Notification of Assignment
Contract
SUPPLEMENTAL
AGENDA ITEM NO.
Consent (6)
Valued Customer,
Yo
u are receiving this letter because you may be a part of our Oct. 1, 2022, SAP S/4 system implementation in the United States. As part of this overall business and SAP transformation process, your organization will note some adjustments in the course of our normal business interactions.
Please ensure that this information is cascaded within your organization.
Pl
ease note the actions you will need to complete below:
New Legal Entity and Bank Accounts Information
Olin´s legal entity structure and banking information has changed, and your company is being assigned to PIONEER AMERICAS LLC.
Date: Action:
Beginning Oct. 1, 2022 Invoices originating from this legal entity will reflect a new Olin bank account for sending remittances.
Pl
ease review the attached letter from Bank of America which provides the information needed to update your vendor records prior to our effective date of Oct. 1, 2022.
In addition, please update your vendor records to send all remittance advices to [email protected].
Tax Exemption Certificate
To properly comply with the laws and regulations regarding state sales tax and use tax, Olin is required to obtain new, state sales and use tax exemption certificate(s) for non-taxed purchases from PIONEER AMERICAS LLC, made by your company. This request is applicable to all ship-to locations.
Date: Action:
Before Sept. 10, 2022 Please respond to this email with your exemption certificate (in PDF) before Sept. 10, 2022, to maintain compliance with these regulations.
If
Olin does business with more than one of your company locations it is possible you will receive additional letters with different banking information. This is not an error or duplicate as that location is tied to a unique OLIN legal entity.
Ple
ase contact your Olin Customer Service Representative with any questions. Thank you for your assistance in maintaining our compliance and for supporting our successful business relationship.
ATTACHMENT A
2 We appreciate your support as we work to integrate and improve our overall service and better position ourselves to serve your needs for many years to come.
Sin
cerely,
3 4
A22102.CON-OLIN.JD
Specification No. SV 22-04
SECOND AMENDMENT TO CONTRACT BETWEEN THE CITY
OF SIMI VALLEY AND OLIN CORPORATION, DBA OLIN
CHLOR ALKALI PRODUCTS AND VINYLS / PIONEER
AMERICAS, LLC FOR THE PURCHASE OF SODIUM
HYPOCHLORITE FOR THE CITY OF SIMI VALLEY’S WATER
QUALITY CONTROL PLAN (WQCP), SPECIFICATION NO. SV
22-04
THIS SECOND AMENDMENT TO CONTRACT is made and entered into in the City of Simi Valley on this 7th day of November 2022, by and between the CITY OF SIMI VALLEY, a municipal corporation, hereinafter referred to as CITY, and OLIN CORPORATION, DBA OLIN CHLOR ALKALI PRODUCTS AND VINYLS, a Virginia Corporation, hereinafter referred to as OLIN and PIONEER AMERICAS, LLC, a limited liability corporation.
I. Recitals
A. CITY and OLIN entered into a written contract ("CONTRACT") executed by the parties on August 23, 2021, for the purchase of chemical supplies, which is incorporated herein by reference.
B. Thereafter, the CITY and OLIN entered into a First Amendment to the CONTRACT (“First Amendment”), executed by the parties on June 23, 2022 which is also incorporated herein by reference.
C. Due to changes made to OLIN’s financial software system, account management and banking requirements, effective October 1, 2022, Olin’s contracts must now reflect the name of the subsidiary supplier in its accounting system related to each of its contacts. In CITY’S case, that subsidiary is PIONEER AMERICAS, LLC (PIONEER). OLIN remains fully responsible for the terms and conditions of the CONTRACT with CITY.
D. In accordance with paragraph 4 of the CONTRACT, the parties desire to increase the not to exceed amount of the CONTRACT as further set forth below. Due to increases in the costs of materials and funding l imitations, the parties agree that the not to exceed amount will be increased for the current term of the CONTRACT through June 30, 2023.
NOW, THEREFORE, in consideration of their mutual promises, obligations , and covenants hereinafter contained, the parties hereto agree as follows:
II. Amendment
1. Contracting Parties : The parties acknowledge OLIN’S requirement for account manage ment purposes , to include the subsidiary , PIONEER AMERICAS, LLC’s name to documents pertaining to this CONTRACT. CITY will comply beginning the Effective Date of this Second Amendment. OLIN also affirms that it remains the contracting entity responsible and subject to the terms and condition of this CONTRACT and its accompanying amendments.
5 A22102.CON.JD
Specification No. SV 22-04
2. Section 4. Compensation and Payment, Subsection A of the CONTRACT is deleted in its entirety and replaced with the following:
“A. In no event shall the total amount paid for this Second Amendment to the Contract exceed $19 0,000.00, for a total not to exceed amount of the CONTRACT of $470,000.00, unless otherwise agreed to by the parties in writing. OLIN shall keep a tally of the cost for the work ordered by CITY. OLIN shall not accept work orders from the CITY if the cost for the work will exceed the amount indicated above unless otherwise agreed to by the parties in writing. The CITY shall be obligated to pay OLIN based upon the unit and/or lump sum prices quoted by OLIN , multiplied by the actual CITY -authorized quantitie s received and accepted by CITY; such unit and/or lump sum prices as contained in Exhibit “B” in the First Amendment to the Contract.
2. Mailing Address . The mailing address of each party to this Second Amendment to the Contract is as follows:
CITY Department of Public Works
2929 Tapo Canyon Road
Simi Valley, CA 93063
Staff Contact: Albert Sexton
Deputy Public Works Director (Sanitation)
(805) 583-6462
CONTRACTOR Olin Corporation,
Dba Olin Chlor Alkali Products and Vinyls
26700 Banta Road
Tracy, CA 95304
Staff Contact: John M. Schabacker, Business Director
(209) 835-7204
3. Except as herein amended, all other terms and conditions of the CONTRACT shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written.
Attest: City of Simi Valley, A Municipal Corporation
By:
Lucy Blanco, City Clerk Brain Paul Gabler, City Manager
Approved as to Form: Olin Corporation, dba Olin Chlor Alkali Products and Vinyls/Pioneer Americas, LLC
By:
David L. Caceres, City Attorney
6 A22102.CON.JD
Specification No. SV 22-04
Print Name:
Approved as to Content: Title:
By:
Carolyn Johnson
Administrative Services Director Print Name:
Title:
Ronald K. Fuchiwaki
Public Works Director
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