Exh 4CAGENDA ITEM #=1C
MARCH 14, 2005
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Sulfur Dioxide for Wastewater Treatment Plants
Bid No. 0405-13
• SUBMITTED BY: Donna Kaluzniak, Utility Director
DATE: March 4, 2005
BACKGROUND: In July, 2004, the City Commission awarded a contract to Jones Chemical,
Inc. to provide chlorine and sulfur dioxide for water and wastewater treatment plants. In January,
' ' 2005, the City received a letter from Jones Chemical, Inc. stating they could no longer supply
.. sulfur dioxide as their packaging facility for that chemical was damaged severely by the
hurricanes.
Staff asked the other bidder, Allied Universal Corporation, if they could honor the bid price they
submitted in July, and they stated they could not. As an interim measure until bids could be
advertised, staff requested quotes from Allied Universal and the only other vendor in the
southeast area, Brenntag Mid-South. Brenntag had the low quote of $420 per ton, and stated the
• , price would be effective for none-year period.
" ' Bids were advertised and invitations sent to the two bidders. Only Allied Universal submitted a
• . bid. Allied's bid price was $585 per ton.
Jones Chemical's original bid price for sulfur dioxide was $375 per ton. Brenntag's quote of
• - $420 per ton represents a 12% cost increase. Allied's bid price of $585 per ton equals a 56%
-price increase.
• BUDGET: A total of $12,000 was budgeted for sulfur dioxide in the Sewer Fund in account
number 410-5508-535-5200. Since we are mid-way through the fiscal year, it should be possible
to absorb the cost increase and remain within budget,
RECOMMENDATION: Since Allied Universal Corporation's bid was much higher than either
the previous bid price or the quote from Brenntag, staff recommends rejecting the bid, and
• ~ waiving the formal bid process to use Brenntag Mid-South to supply sulfur dioxide for the
• wastewater treatment plants.
ATTACHMENTS: 1. Bid tabulation form
2. Letter from Jones Chemical, Inc. dated 1/19/05.
3. E-mail quote from Brenntag id-South
REVIEWED BY CITY MANAGER:
1
a
v
n.
a
m
ro
Q
0
0
O
cu
w
3
m
~.
D
w
a
n
0
3
3
ti
0
D
a
v
SOOZ `hI IiJ2i~I1I
~b# I~?~.LI'1aQI~I~~t~
to ? ~cn c nc~ v v ~ n !- D ' o- lo co ~
c l o c o n' m ~ ~ o ~ ~ .c m
O `ar c7 Cn fD ~ ~ o ~ ,v ~ ° w °-' N m
a
o ~ : o m a m E N O ~ .a n ~ 5 p .
x
" m .~ ~ ~ o m .
~ m .c ~ v
t,
' --w m
~ ~p
. 7C O
o N
O
~ ~ '~.. m ~ ~ C
~
~' .
,
< ,p
' O
O n
O
-
d y
S = p ~
m ~ c
_ . ~
C ~r; ~~ C ~ ` n ~ ~ f~D O n ii
t C~ n . O
Q o ~ 3 m ~ '~
~
-- ';' ~ n ' ~,3 ,._
D ~
S m ~? ~
~ d
o ;~ fi
m ~ ,D
o o ~ ~ .». .
m m
_ - :_
~ ~ ,~ o w II7 O, r
c `~' `fD n ~ ° ~ D nD. ~
°
; ~ ~° y m m
a
~ ?
~
%..".i ~
t~ y ~ ~ ~-
~ o
d
m
~;~
o
m
r
o
m .
~' ? ~ m a ~~ c
o
~ ~ ~ ~ ~'. m
.. ., ~ m ~
~ ~
n
=
a t
:
c
a~
n
0
N
.*
.;_;
a- '`~' D
o
~
w ~
-~ a
A
~ y
cD
~
~
; y~~
~,
c
~
~
: '~~-
w ~
o z ~
~ o c
'
'
, '
` m ~ ca
0 a.
m
o
~. "'
0
w ~.
C
I-
~ `.
O
„
m m ~.
~
O •~
~ ~
~~
~ my
~
r
r.~mm~'
r. ~_•
~.
o
~D
..
m
°~
~
Z ~ ~ ._,
~y ..
m u
z •.
v ,_.
z •.
c .~,
0
.~
3 .~
1-t9-O5; 5:54PM;
~~ ~ -
., ~
;-~
'`-';.~J1 Joncs chrmicak Inc.
1-19-OS
AGENDA ITElv1 #4C
MARCH 14, 2005
Mrs, Donna Kaluzniak, Utility Director
Department of Public Works
1200 Sandpiper Lane
Atlantic Beach, Fl. 32233-4318
Re: Sulfur Dioxide
j Dear Donna,
For many years we have been packaging sulfur dioxide at our 7acksonville plant.
Unfortunately, that system is no longer in service. It was severely damaged during the
hurricanes in 2004. We tried to get the system operating, but it is beyond repair. We are
• • advising our S02 customers that we will no longer have the ability to supply sulfur
dioxide. Please make arrangements for a new source of supply.
We regret having to make this announcement, and we thank you for your business
over the years. We have some inventory remaining and we will continue to ship the
product until the inventory is depleted.
' " Tf you have any questions, please don't hesitate to contact me.
. S' rely, .
Patri~ .
T. Mulhall ,
.. Sales Representative
1433 Tallyrand Avcnue Jacksonville, Florida 3ZZ06 • ccleplwne: 904.355.0119 facsimile: 904.3)5,0817
Corporatt Offices • $;u;taxa, Fi. • Sranch Locanuns • London, UK • GoJhen, NY • Wnnvick, NY • Caledonia, NY • B,irixtum, OH • Rivervirw, Ml • bfetrimack. f~H
Charloae, VC • Fc. Lwdenlilr, FL • fk~tih Gruve, IM • \lilfunl, VA • Tawma, WA • Torrance, CA • Milpitu, CA
AGENDA ITEIYi #4C
MARCH 14, 2005
.. Kaluzniak, Donna
From: KSikes@brenntag.com
Sent: Monday, January 24, 2005 1:54 PM
' To: Kaluzniak, Donna
Cc: SBlanchetteQbrenntag.com; BKeel@brenntag.com
Subject: Re: Quote
• January 20.doc
(90 KB)
• Donna, your pricing on Sulfur Dioxide in ton containers is $420.00 per ton for
City of Atlantic Beach.
This pricing is firm for I year from 1/24/05 thru 1!24/06. Of course, our
terms remain net 30 days. If you have any further questions, .Thank you, Karen
Karen Sikes
Distribution Center Manager
Brenntag Mid-South
1622 James P. Rodgers Drive
Valdosta GA 31601
800-519-6121
fax: 229-293-9613
ksikes@brenntag.com
"Kaluzniak,
Donna"
<dkaluzniak@coab: To
us> <ksikes@brenntag.com> '
cc
01/20/2005 04:32
PM Subject
Quote
Karen, I tried to fax this to you, but it has come back busy 3 times. Let me know if this
will work - Donna «January 20.doc»
Donna Kaluzniak
Citility Director
1200 Sandpiper Lane
Atlantic Beach, FL 32233
PH: 904-247-5834
FAX: 904-247-5843
dkaluzniak@coab.us (See attached file: January 20.doc~
1