TO: Mayor and Commissioners
FROM: Hassan Hadjimiry, Utilities Director
THROUGH: Terrence R. Moore, ICMA-CM
DATE: November 1, 2022
Title
APPROVAL OF AMENDMENT NO. 1 AUTHORIZING A PRICE ADJUSTMENT AND APPROVAL OF RENEWAL AND INCREASING THE CONTRACT VALUE WITH CARUS LLC f/k/a CARUS CORPORATION. FOR SUPPLY AND DELIVERY OF POLY PHOSPHATE IN THE TOTAL ESTIMATED RENEWAL VALUE OF $599,520 THROUGH DECEMBER 9, 2024 ($299,760) PER YEAR).
Body
Recommended Action
Recommendation
Motion to approve Amendment No. 1 to authorize a price adjustment, and approval of renewal and increase the contract value with Carus LLC f/k/a Carus Corporation for supply and delivery of Poly Phosphate in the total estimated renewal value of $599,520 ($299,760 per year) through December 9, 2024.
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Background:
On December 10, 2019, City Commission via Resolution No. 209-19, approved an Agreement with Carus LLC f/k/a Carus Corporation, for the supply and delivery of Poly Phosphate; pursuant to Invitation to Bid No. 2019-047. Poly Phosphate is used to reduce deterioration in piping by inhibiting scale formation and corrosion, containing inhibitors to protect water distribution piping. It creates a monomolecular film that reduces lead and copper leaching to comply with the current lead and copper rule.
In the past year, producers have announced five rounds of price increases for phosphoric acid. The global inventory of phosphate is low, and ever-increasing tariffs on imported phosphates from some of the major phosphate-producing countries, i.e., Morocco and Russia have contributed to the decline in the supply of this commodity. Phoshoric acid input costs (those for sulphur and phosphate rock) have risen dramatically: sulphur by 174% year-over-year and phosphate rock by almost 84%. The vendor has indicated that the industry as a whole is plagued with supply chain issues which have created supply-demand imbalance. To provide additional justification, a Phosphate Market Summary is at...
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