R2011-139 - 2011-11-14ATTEST:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, AWARDING A UNIT SUPPLY BID FOR WASTEWATER
POLYMER.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That the City opened supply bids for wastewater polymer, and such
bids have been reviewed and tabulated.
Section 2. That the City Council hereby awards the bid to Fort Bend Services,
Inc., in the unit price amounts reflected in Exhibit "A" attached hereto.
Section 3. The City Manager or his designee is hereby authorized to execute a
supply contract for wastewater polymer.
PASSED, APPROVED and ADOPTED this the 14th day of November, A.D., 2011.
APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
RESOLUTION NO. R2011 -139
TOM REID
MAYOR
AGENDA OF: November 14, 2011 ITEM NO.: Resolution No. R2011 -139
DATE SUBMITTED: October 31, 2011 DEPT. OF ORIGIN: Finance
PREPARED BY: Bob Pearce PRESENTOR: Bill Eisen
REVIEWED BY: Jon R. Branson REVIEW DATE: November 2, 2011
SUBJECT: Award of bid for supply of Wastewater Polymer
EXHIBITS: Council Resolution #R2011 -139
EXPENDITURE REQUIRED: 150,000 (est.) AMOUNT BUDGETED:
AMOUNT AVAILABLE: $150,000 PROJECT NO.:
ACCOUNT NO.: 030 4042 542 -06 -00
ADDITIONAL APPROPRIATION REQUIRED:
ACCOUNT NO.:
PROJECT NO.:
$150,000
To be completed by Department:
o Finance o Legal Ordinance o Resolution
AGENDA REQUEST
BUSINESS OF THE CITY COUNCIL
CITY OF PEARLAND, TEXAS
Exhibit "A"
Resolution No. R2011 -139
EXECUTIVE SUMMARY
One (1) sealed bid was received October 20, 2011, for the supply of wastewater polymer to
each of the City's five (5) wastewater treatment plants, pursuant to the specifications of Bid
#1012 -02. Bid invitations were provided to 13 vendors. The polymer is used in the plants to
dewater liquid bio- sludge into a dry by- product for subsequent disposal per State requirements.
Fort Bend Services, Inc. has supplied the polymer for the past year, however, they were unable
to hold their pricing within the allowable Consumer Price Index (CPI) increase due to the fact
that they have had three (3) price increases from their manufacturer during the initial one -year
term of the purchase agreement, which they have absorbed. For this reason, it was necessary
for the City to re -bid the polymer. Fort Bend Services, Inc. was the only respondent to the bid
solicitation with a unit price of $10.9093 per gallon, a 15% increase over the previous contract
price of $9.449 per gallon. The price increase is primarily attributable to persistent shortages
and rising prices for propylene, which in turn has driven up the cost of the key raw materials in
producing the polymer.
This bid award will provide for a fixed unit cost for a period of one (1) year, with no allowable
price increases. At the expiration of the initial term, an option is available for two (2) additional
one (1) year renewals with the mutual agreement of both parties. Any price adjustment
requested by the contracted vendor at the outset of any renewal period is governed by, and
limited to, a commensurate increase in the CPI for the Houston Galveston Brazoria metropolitan
area. In the event a renewal contract is not agreeable to both parties, the contract will continue
on a month -to -month basis until such time as a new bid can be awarded.
RECOMMENDED ACTION
City Council consideration and approval of a resolution to award a bid for the supply of
wastewater polymer to Fort Bend Services, Inc. at the unit cost of $10.9093 per gallon.