SAN2401.SR.JD
CITY OF SIMI VALLEY
MEMORANDUM
J
anuary 29, 2024
TO
: City Council
F
ROM: Department of Public Works
S
UBJECT: APPROVAL OF THE FIRST CONTRACT AMENDMENT FOR THE
PURCHASE OF CHEMICAL SUPPLIES FOR THE CITY OF SIMI
VALLEY’S WATER QUALITY CONTROL PLANT (WQCP), AND
APPROVAL OF SUPPLEMENTAL BUDGET REQUEST
STAFF RECOMMENDATION
I
t is recommended that the City Council:
1. A
pprove the First Contract Amendment with SNF Polydyne, Inc. (Polydyne) for the purchase of Clarifloc WE -2043 and WE -060 Polymer extending the term for two (2) years from July 1, 2024 to June 30, 2026 and increasing the not-to-exceed amount by $650,000, for a total not-to-exceed amount of $810,000;
2. A
pprove the Supplemental Budget Request in the amount of $110,000 in Sanitation Fund (Fund 700);
3. A
uthorize the City Manager to approve any subsequent contract amendments to incorporate future budgeted funds into the contract amount, and to extend the contract by up to one (1) additional two-year term in accordance with the contract terms.
BACKGROUND AND OVERVIEW
O
n June 28, 2022, the City Manager approved Polydyne as a Sole Source vendor for the supply of Clarifloc Polymer chemicals for the WQCP. New construction at the WQCP required a switch from a dry polymer to a liquid polymer . The unique polymer formula of Clarifloc WE-2043 and WE-060 is only manufactured and sold by Polydyne and based on a demonstration performed at acceptable levels for maintaining consistent, safe, and cost effective operation of the Dewatering Belt Press and Dissolved Air Floatation Treatment equipment at the WQCP.
C
hanges in polymer formula types and vendors can drastically affect dewatering operations and cause treatment, safety , and mechanical problems at the WQCP.
As part of the City’s due diligence, staff has been unsuccessful in sourcing a viable Clarifloc liquid polymer replacement that will maintain safe WQCP treatment. On March 21, 2023 the City Manager awarded a contract to Polydyne for the purchase AGENDA ITEM NO.
Consent (3)
SAN2401.SR.JD
of Clarifloc Polymer chemicals in the amount of $160,000 for the period of July 1, 2023 through June 30, 2024. Due to increased demands of plant operations and the ongoing Anaerobic Digester Cleaning project, CP70200041, additional Clarifloc Polymer is needed to meet the chemicals inventory requi rement through June 30, 2024.
FINDINGS AND ALTERNATIVES
For FY 2023- 24, Polydyne's current contract amount is $16 0,000. Due to increased polymer usage and the ongoing Anaerobic Digester Cleaning project, CP70200041, the WQCP will need an additional $110, 000 for Polymer purchases in FY 2023-24. A total amount of $270,000 is needed to fully fund the contract with Polydyne for this fiscal year.
The FY 2023-24 Sanitation budget contains $160,000 for the purchase of Polymers. An additional $110 ,000 i s needed this fiscal year for Polymer chemicals and staff is requesting approval of a supplement budget request. This budget increase will be taken from the Sanitation Division’s reserve fund. Staff is requesting the City Council approve a first Contact Amendment which will adjust the contract amount and add an additional two years to the original contract.
If the First Contract Amendment is approved, the one year (FY 2023-24) contract total for Polydyne will be $270,000. The amount of $270,000 will be requested in the FY 2024-25 Sanitation budget for the purchase of Polymer, and a n additional $270,000 will be requested in FY 2025- 26. Future funding limits under the proposed contract are contingent upon funding approval by the City Council.
The following alternatives are available to the City Council:
1. Approve the First Contract Amendment with Polydyne for the purchase of Clarifloc WE-2043 and WE-060 Polymer extending the term for two (2) years from July 1, 2024 to June 30, 2026 and increasing the not -to-exceed amount by $650,000, for a total not-to-exceed amount of $810,000;
2. Approve the Supplemental Budget Request in the amount of $110,000, in the Sanitation Fund (Fund 700);
3. Authorize the City Manager to approve any subsequent contract amendments to incorporate future budgeted funds into the contract amount, and to extend the contract by up to one (1) additional two-year term in accordance with the contract terms.
4. Provide staff with other direction.
Staff recommends Alternative Nos. 1, 2, 3.
2 SAN2401.SR.JD
SUGGESTED CITY COUNCIL MOTION
I move to approve the First Contract Amendment with Polydyne for the purchase of Clarifloc Polymer in the amount of $650,000, approve a Supplemental Budget Request in the amount of $ 110,000 in the Sanitation Fund (Fund 700), and authorize the City Manager to approve subsequent contract amendments pertaining to budgeted funds and extending the contract up to one (1) additional two (2) year terms.
SUMMARY
On June 28, 2022, the City Manager approved Polydyne as being a Sole Source vendor for the supply of Clarifloc Polymer chemicals for the WQCP. On March 21, 2023 the City Manager awarded a contract to Polydyne for the purchase of Clarifloc Polymer chemicals in the amount of $160,000 for the period of July 1, 2023 through June 30, 2024. Due to increased demands of plant operations and the ongoing Anaerobic Digester Cleaning project, CP70200041, additional Clarifloc Polymer is needed to meet the chemicals inventory requirement through June 30, 2024. Staff is requesting the City Council approve the First Contract Amendment with Polydyne to extend the term for two years from July 1, 2024 to June 30, 2026, increase the not-to-exceed amount by $650,000, and approve a supplement budget request in the amount of $ 110,000 in the Sanitation Fund (Fund 700).
____________________________________
Ronald K. Fuchiwaki
Public Works Director
Prepared by: Matt Mckenna, Senior Management Analyst
INDEX
Page
First Contract Amendment ................................................................ 4
3 SAN2401.CON.JD
First Contract Amendment
FIRST AMENDMENT TO CONTRACT BETWEEN THE CITY OF
SIMI VALLEY AND SNF POLYDYNE, INC., FOR THE
PURCHASE OF CLARIFLOC WE -2043 AND WE -060
POLYMER FOR THE CITY OF SIMI VALLEY’S WATER
QUALITY CONTROL PLANT (WQCP)
THIS FIRST AMENDMENT TO CONTRACT is made and entered into in t he City of Simi Valley on this 29
th day of January 2024, by and between the CITY OF SIMI VALLEY, a municipal corporation, hereinafter referred to as CITY, and SNF POLYDYNE, INC., a Georgia corporation, hereinafter referred to as CONTRACTOR, each a “ Party” and collectively, “Parties”.
I. Recitals
A. CITY and CONTRACTOR entered into a written contract ("CONTRACT") executed by the Parties on April 7, 2023 for the purchase of Clarifloc WE-2043 and WE -060 Polymer, which is incorporated herein by reference.
B. In accordance with paragraph 8 of the CONTRACT, the Parties now desire to increase the not to exceed amount of the CONTRACT Due to increases in the costs of materials and funding limitations as well as extend the term of the CONTRACT through June 30, 2026 as further set forth below.
NOW, THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the Parties hereto agree as follows:
II. Amendment
1. Section 2. Term.
Notwithstanding anything to the contrary in Section 2, of the CONTRACT, the Parties agree to extend the Contract for two years, from July 1, 2024 to June 30, 2026. This CONTRACT may be extended for up to one (1) additional two- year terms upon mutual written consent of the City Manager and CONTRACTOR. Unit prices may be adjusted for each extension at the amount not to exceed the change in the Los Angeles-Long Beach Anaheim, CA Consumer Price Index (CPI) for the prior year ending in December.
2. Section 4. Compensation and Payment . Subsection A and C from the CONTRACT are deleted in their entirety and replaced with the following:
“In no event shall the total amount paid for this First Amendment to the Contract exceed $650,000, for a total not to exceed amount of the C ONTRACT of $810,000, which fees are based on pricing agreed upon for the July 1, 2024 through June 30, 2026 term, unless otherwise agreed to by the parties in writing. The CONTRACTOR shall keep a tally of the cost for the work ordered by CITY. The CONTRACTOR 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 CONTRACTOR based upon the unit and/or lump sum prices 4 SAN2401.CON.JD
First Contract Amendment
quoted by CONTRACTOR, multiplied by the actual CITY -authorized quantities received and accepted by CITY; such unit and/or lump sum prices as contained in Exhibit “B-1” attached hereto this First Amendment to the CONTRACT.”
3. Mailing Address . The mailing address of each Party to this CONTRACT AMENDMENT is as follows:
CITY Department of Public Works
2929 Tapo Canyon Road
Simi Valley, CA 93063
Staff Contact: Al Sexton, Deputy Public Works
Director/Sanitation
(805) 583-6462
CONTRACTOR SNF Polydyne, Inc.
One Chemical Plant Road
Riceboro, GA 31323
Attn: Tatiana Kelso
Bid Specialist
(912) 880-2431
5 SAN2401.CON.JD
First Contract Amendment
4. 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 Fred D. Thomas, Mayor of the City of Simi Valley, California
Approved as to Form: SNF Polydyne, Inc.
By:
Algeria R. Ford, City Attorney
Print Name:
Approved as to Content: Title:
By:
Brian Paul Gabler, City Manager
Print Name:
Title:
Johanna Medrano,
Deputy Administrative Services Director/
Budget & Purchasing
Ronald K. Fuchiwaki
Public Works Director
6 SAN2401.CON.JD
E
XHIBIT B-1
A
MMENDED UNIT PRICING SCHEDULE
(Effective July 1, 2024 to June 30, 2026)
F
IRST AMENDMENT TO CONTRACT BETWEEN THE CITY OF
SIMI VALLEY AND SNF POLYDYNE, INC., FOR THE
PURCHASE OF CLARIFLOC WE -2043 AND WE -060
POLYMER FOR THE CITY OF SIMI VALLEY’S WATER
QUALITY CONTROL PLANT (WQCP)
7 polydyne.snf.com
SNF Polydyne • 1 Chemical Plant Road • Riceboro, GA 31323 USA • Tel 800.848.7659 Emailed to: [email protected]
Jan
uary 4, 2024
M
r. Matt McKenna
Department of Public Works
City of Simi Valley
2929 Tapo Canyon Road
Simi Valley, CA 93063
Su
bject: Polymer Contract Extension Proposal
D
ear Mr. McKenna,
P
olydyne Inc. is pleased to offer the City of Simi Valley an extension of the referenced contract for an additional year. Products and prices shall be as follows:
P
RODUCT PRICE PACKAGE
CLARIFLOC WE-2043 $1.97/LB. DELIVERED* LIQUID BULK
CLARIFLOC WE-060 $1.74/LB. DELIVERED* 2300 LB. TOTE
*Above quoted price is exclusive of any applicable state and local taxes. All applicable taxes will appear as a separate line item on invoices.
T
he renewal period will be July 1, 2024, through June 30, 2026.
W
e thank you for your business and look forward to continuing our valued partnership. Should you have any questions regarding this correspondence, please feel free to contact Caesar Querol, Technical Sales Representative, at (619) 669-8477 or by email to [email protected]. If this offer is acceptable, please send notification via email to [email protected].
Sin
cerely,
B
oyd Stanley
Sr. Vice-President
8