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HomeMy WebLinkAbout22-193 Resolution No. 22-193 RESOLUTION AUTHORIZING EXECUTION OF A CHANGE ORDER NO. 2 WITH ALEXANDER CHEMICAL CORPORATION FOR CHLORINE CHEMICAL PURCHASE FOR 2022 (Bid No. 21-060) WHEREAS, the City of Elgin has heretofore entered into a contract with Alexander Chemical Corporation for chlorine chemical purchase for 2022 (Bid No. 21-060); and WHEREAS,it is necessary and desirable to modify the terms of the contract as is described in Change Order No. 2 attached hereto. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS,that pursuant to Elgin Municipal Code Section 5.02.020B(9)the City Council hereby finds that an exception to the requirements of the procurement ordinance is necessary and in the best interest of the city; and BE IT FURTHER RESOLVED, that Richard G. Kozal, City Manager, be and is hereby authorized and directed to execute Change Order No. 2, a copy of which is attached hereto and made a part hereof by reference. _ s/David J. Kaptain David J. Kaptain, Mayor Presented: November 2, 2022 Adopted: November 2, 2022 Omnibus Vote: Yeas: 9 Nays: 0 Attest: s/Kimberly Dewis Kimberly Dewis, City Clerk ' City of Elgin cn, angora��- ELGIN,ILLINOIS PROJECT Bid 21-060 CHANGE ORDER No.2 CONTRACT: Chlorine Chemical Purchase for 2022 with Alexander Chemical Corporation(Hid No. 21-060) SCOPE: A rate increase for chlorine purchases. REASONS FOR CHANGE: Alexander Chemical was selected as the lowest responsible bidder for chlorine. In the original bid and awarded agreement, Alexander stated the price would only be applica- ble for the first 90 days of the year. Alexander has provided information to the city regarding nation- wide challenges in acquiring chlorine and have provided two price increases this year. Due to unfore- seeable supply availability, and cost and supply issues nationally involving chlorine, an amendment to the city's existing agreement with Alexander Chemical Corporation for the purchase of chlorine is nec- essary. The circumstances necessitating the change in price were not reasonably foreseeable at the time the contract was signed;the subject change is germane to the original contract as signed; and this change order is in the best interests of the City of Elgin and is authorized by law. SUMMARY OF CHANCES IN CONTRACT AMOUNT: ORIGINAL CONTRACT AMOUNT-. $1,159.00 per ton PREVIOUS CHANGE ORDER(S): t`hatl o 0rilvr\io. 1 April 1,2022 increase to$1309.00 per ton;and $ 150.00 per ton July 1,2022 increase to$1675.00 per ton $ 366.00 per ton TOTAL OF PREVIOUS CHANGE ORDERS: ADD $ 516.00 per ton TOTAL FOR CHANGE ORDER NO.2 ADD $ 160.00 per ton TOTAL REVISED CONTRACT AMOUNT: $1,835.00 per ton The original amount of the contract with Alexander Chemical Corporation was a rate of$1,159.00 per ton. Change Order No. 1 increased the original contract amount rate by a total of$516.00 per ton. The new contract rate amount, inclusive of all change orders is $1,835.00 per ton. Change Order No. 2 will increase the contract amount rate as amended by Change Order No. 1 by a total of$160.00 per ton, that sum representing a 9.5% increase from the contract amount as amended by Change Order No. 1. The rate increase will result in a total estimated amount increase of$4,800.00 for the period of October 1 through December 31,2022. OTHER CONTRACT PROVISIONS: Paragraph 10 of the original agreement as amended in its en- tirety to provide: City shall pay the total sum provided for by this agreement on the basis of$1,835.00 per 2,000 lb.ton effective October 1,2022,within thirty (30)days of delivery or other performance, or City's receipt of invoice, which-over is later. The aforementioned total sum is in inclusive of all applicable freight,shipping and taxes. Chlorine is the awarded chemical. All other contract provisions remain the same. CHANGE ORDER No.2 Agreed to this 2 day of November ,2022. Recommended by: WATER DEPARTMENT By: Eric Weiss Title: Water Director Date: to/4 0 � Signature: Accepted by: ALEXANDER CHEMICAL CORPORATION Party of the Second Part(Contractor) By: Robert Davidson Title: CEO Date: October 10 2022 -. , Signature: Approved by: CITY OF ELGIN Party of the First Part(Owner) By:—.____. Richard G. Kozal Title:— City Manager Date: Nove 2, 2022 Signature: Legal DepAAgreemenAChange Order 2-Alexander Chemical-Chlorine-10-13.22.doc