Explanation
BACKGROUND: This legislation authorizes the Finance and Management Director to modify an existing Universal Term Contract (UTC) for the option to obtain Liquid Chlorine with JCI Jones Chemicals, Inc. This contract provides for purchase of Liquid Chlorine that is used by the Division of Water as a disinfection agent for potable water. The current contract will be extended through March 31, 2023 and the modification is necessary to strike a limitation in the Escalator Clause. The market for chlorine has been extremely volatile over the past eighteen months. The Purchasing Office did a bid process for a new contract in January, however the only bid received was $554 more per ton that our current supplier. The current supplier failed to submit a bid but has agreed to a contract extension with this modification in terms. That contract, PO262558 was established in accordance with Request for Quotation RFQ017426 and will expire March 31, 2023, with the extension.
No additional funds are necessary to modify the option contract as requested. The original contract was formally bid. The original terms and conditions will remain the same except for the escalator clause, in which a limitation of no more than 2 increases per year will be stricken.
EMERGENCY DESIGNATION: The Finance and Management Department respectfully requests this legislation be considered an emergency to ensure no interruption in delivery is experienced.
FISCAL IMPACT: No funding is required to modify the option contract. The Department of Public Utilities must set aside their own funding for their estimated expenditures.
Title
To authorize the Finance and Management Director to modify the contract for the option to purchase Liquid Chlorine with JCI Jones Chemicals, Inc., and to declare an emergency.
Body
WHEREAS, the Purchasing Office entered into a Universal Term Contract for Liquid Chlorine for use by the Division of Water; and,
WHEREAS, it is necessary to modify...
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