HomeMy WebLinkAbout032648 RES - 01/25/2022Resolution authorizing a one-year supply agreement, with one
additional one-year option, for the purchase of liquid chlorine in rail
car, in an amount not to exceed $2,500,000.00 and a potential cost of
$5,000,000.00 if all options are exercised, with DPC Industries, Inc. of
Corpus Christi, Texas, with FY 2022 funding in the amount of
$1,666,700.00 available through the Water Fund.
WHEREAS, liquid chlorine delivered by rail car is a necessary chemical used in
the water treatment process;
WHEREAS, State law generally requires that procurements are subject to
statutory requirements, including competitive bids, unless an exception applies;
WHEREAS, there is a statutory exception for this procurement in Local
Government Code, Section 252.022(a)(2), as this purchase is necessary to preserve or
protect the public health or safety of the City's residents;
WHEREAS, while City staff did issue a Request for Bids ("RFB") looking for
potential suppliers of liquid chlorine, only one bidder, DPC Industries, Inc., responded to
the RFB;
WHEREAS, DPC Industries, Inc. provided both a bid and an alternative bid, which
included additional terms and limitations on the pricing provided, in response to the RFB,
and City staff elected to cancel the RFB and negotiate the terms of an agreement with
DPC Industries, Inc. that were mutually agreeable outside of the bid process;
WHEREAS, liquid chlorine delivered by rail car is a necessary chemical used in
the water treatment process and the price of liquid chlorine is volatile in the current
market; and
WHEREAS, given the necessity to receive this chemical for use in the water
treatment process, the City believes that it is in the best interest of the City's residents to
enter into an agreement with DPC Industries, Inc., that allows for some flexibility in pricing
up to a set maximum annual amount so as to avoid any interruption in the City's supply
of liquid chlorine which is necessary to preserve the public health or safety of the City's
residents.
Be it resolved by the City Council of the City of Corpus Christi, Texas:
Section 1. The City Council specifically finds that the foregoing statements included in
the preamble of this resolution are true and correct and adopts such findings for all intents
and purposes related to the authorization of this procurement.
Section 2. The City Manager, or designee, is authorized to execute all documents
necessary for a one-year supply agreement, with one additional one-year option, for the
purchase of liquid chlorine in a rail car, in an amount not to exceed $2,500,000.00 and a
potential cost of $5,000,000.00 if all options are exercised, with DPC Industries, Inc., of
Corpus Christi, Texas.
032648 ]
Page 1 of 2
SCANNED
PASSED AND APPROVED on the d' day of E 2022:
Paulette M. Guajardo
Roland Barrera
Gil Hernandez
Michael Hunter
Billy Lerma
John Martinez
Ben Molina
Mike Pusley
Greg Smith
ATTEST:
Re • ecca Huerta
City Secretary
AL„A
AY -
OF CORPUS CHRISTI
032048
Paulette M. Guajardo
Mayor
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CITY OF CORPUS CHRISTI
CERTIFICATION OF FUNDS
(City Charter Article IV, Sections 7 & 8)
I, the Director of Financial Services of the City of Corpus Christi, Texas (or his/her duly
authorized representative), hereby certify to the City Council and other appropriate officers that
the money required for the current fiscal year's portion of the contract, agreement, obligation
or expenditure described below is in the Treasury to the credit of the Fund specified below, from
which it is to be drawn, and has not been appropriated for any other purpose. Future payments
are subject to annual appropriation by the City Council.
City Council Action Date: January 25, 2022 Legistar Number: 22-0057
Agenda Item:
Resolution authorizing a one-year supply agreement, with one additional one-year option, for
the purchase of liquid chlorine in rail car, in an amount not to exceed $2,500,000.00 and a
potential cost of $5,000,000.00 if all options are exercised, with DPC Industries, Inc. of Corpus
Christi, Texas, with FY 2022 funding in the amount of $1,666,700.00 available through the Water
Fund.
Amount $ 1,666,700.00
Fund Name
Accounting Unit
AcNoount
Activity No.
Amount
Water
062-4010-31010
520010
1,666,700.00
Total
$1,666,700.00
❑ Certification Not Required
Director of Financial Services
'I31I -
Date: