SUBJECT:
Title
Request Approval of Contract Amendment: 19B-265-CA-03, Bulk Chlorine - Odyssey Manufacturing Company, Tampa, FL (Budget Impact - Neutral; estimated annual expenditure of $620,323 as proposed in FY 2024-25 budget)
Body
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INITIATOR: |
DEPARTMENT: |
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Susan Olsen, Director |
Procurement Services |
DESCRIPTION/BACKGROUND:
On September 17, 2019, the Board approved a contract with Odyssey Manufacturing Company to supply bulk liquid chlorine and high-test calcium hypochlorite granules for use in the County’s water/wastewater operations. On September 20, 2022, the Board approved the first of three (3) available annual renewals, which included a vendor requested rate increase of $0.36/gal for the bulk liquid chlorine bringing the unit cost to $1.25/gal. On August 1, 2023, the Board approved the second of three (3) available renewals, which included a rate increase of $0.40/gal for the bulk liquid chlorine bringing the unit cost to $1.65/gal. Marion County Utilities (MCU) requests to renew the agreement, utilizing the third and final available annual renewal option. The vendor has requested a $0.05/gal increase for the bulk liquid chlorine with this renewal, citing continued manufacturer and transportation cost increases over the past 12 months. MCU also requests approval of this increase, which brings the price of bulk chlorine to $1.70/gal. The cost for HTH calcium hypochlorite granules will remain at the current cost of $400 per 100 lb. pail. Liquid Chlorine composes 98% of the purchases under this contract.
Attached for review is a draft of the contract amendment. Pending approval at today’s meeting, it will be sent to the vendor for signature, and upon return, will be forwarded for the County Attorney’s, Clerk’s and Chair’s signatures.
BUDGET/IMPACT:
Neutral; estimated annual expenditure of $620,323. Future annual expenditures will vary based on actual need, be based on contracted unit costs and shall not exceed approved budgeted amounts without being brought back to the Board for approval. Funding is from Marion County Utility Fund, lines ZF442533-552108 ($208,902) and ZF445535-552108 ($411,421)
RECOMMENDED ACTION:
Recommended action
Motion to approve and allow staff to issue, and upon approval by Legal, authorize the Chair and Clerk to execute the Third Contract Amendment with Odyssey Manufacturing Company, under 19B-265.
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