STRATEGIC PRIORITY: Transportation & Infrastructure
AGENDA DATE: June 14, 2023
COUNCIL DISTRICT(S): All
DEPARTMENT: Water Utilities Department
EXECUTIVE: Kimberly Bizor Tolbert
______________________________________________________________________
SUBJECT
Title
Authorize the ratification to pay outstanding invoices due to (1) Lhoist North American of Texas, Ltd. in the amount of $1,730,017.82; (2) Solvay Fluorides, LLC in the amount of $105,699.60; (3) Brenntag Southwest, Inc. in the amount of $5,584,286.89; (4) INEOS Calabrian Corp. in the amount of $149,543.76; (5) Carbon Activated Corp. in the amount of $386,280.00; (6) Polydyne Inc. in the amount of $62,812.80; (7) Chameleon Industries, Inc. in the amount of $558,435.52; and (8) Shrieve Chemical Company in the amount of $536,388.08; for the uninterrupted provision of goods needed to sustain the utility’s drinking water and wastewater treatment operations and protect the public health and safety until a new chemical contract was awarded - Total not to exceed $9,113,464.47 - Financing: Dallas Water Utilities Fund
Body
BACKGROUND
Worldwide shortages in key raw materials, further worsened by the pandemic, supply chain challenges, natural disasters, the global humanitarian crisis, and escalating freight costs resulted in various contracted suppliers unable to honor established prices. At the point of declaring force majeure, the discontinuation of product delivery would jeopardize the Utility’s ability to provide essential water and wastewater services to our community.
This item allows for the ratification of purchases needed to preserve or protect the public health or safety of the community, allowing the City to continue basic water and wastewater operations from vendors previously under contracts tied to Master Agreement Nos. DWU-2018-00004459, DWU-2018-00005568, POM-2019-00010209, DWU-2019-00011206, DWU-2019-00011205, DWU-2020-00011752, and DWU-2020-00013640. These purchases were made between April 22, 2022 and March 31, 2023 and were funded in the FY22 and FY23 Budget.
The procurement to replace the above listed contracts was completed with the last bulk chemical contract awarded by City Council in January 2023. The new master agreements were updated to provide improved flexibility to address future price adjustments, protecting the City’s ability to continuously meet our community’s expectations to provide regulatory compliant water and wastewater services.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On March 28, 2018, the City Council authorized a three-year master agreement with Lhoist North American of Texas Ltd. for the purchase of quicklime in the amount of $17,245,482.00, by Resolution No. 18-0456.
On August 14, 2019, the City Council authorized a three-year master agreement with Solvay Fluorides, LLC for the purchase of hydrofluorosilicic acid in the amount of $1,163,625.00, by Resolution No. 19-1127.
On November 13, 2019, the City Council authorized a three-year master agreement with Brenntag Southwest, Inc. for the purchase of railcar chlorine in the amount of $4,791,800.00, by Resolution No. 19-1781.
On December 11, 2019, the City Council authorized a three-year master agreement with INEOS Calabrian Corporation for the purchase of liquid sulfur dioxide in the amount of $1,701,180.00, by Resolution No. 19-1917.
On May 13, 2020, the City Council authorized a five-year master agreement with Polydyne Inc. for the purchase of polymer in the amount of $15,494,062.50, by Resolution No. 20-0742.
On September 9, 2020, the City Council authorized a three-year master agreement with Chameleon Industries, Inc. for the purchase of liquid ammonia sulfate in the amount of $1,271,000.00, by Resolution No. 20-1320.
On December 8, 2021, the City Council authorized a two-year master agreement with Shrieve Chemical Company for the purchase of anhydrous ammonia, in the amount of $1,707,925.00, by Resolution No. 21-1989.
FISCAL INFORMATION
|
Fund |
FY 2023 |
FY 2024 |
Future Years |
|
Dallas Water Utilities Fund |
$9,113,464.47 |
$0.00 |
$0.00 |