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HomeMy WebLinkAbout2006-157 Contract Ext - Polydyne Inc Jul 19 06 11 :148 p.2 POLYDYNE INC. PO BOX 250 Rieeboro, GA 31323 July 19, 2006 cit)' of Ashland WWTP AlTN: Mr. Terry Ellis 90 N. Mountain Avenue Ashland. OR 97420 SUBJECT: POLYDYNE CLARIFLOC c-&286 CONTRACT EXTENSION Dear Mr. BUs: SNF PoIydyne would like tD thank you for the continuing business. We are excited about the polymer performance, and are confident that we can continue to provide superior dewatering cost-performance. The currant Sole Supply Agreement expires on July 31, 2006. The contracllanguage stipulates that the price of C1arffloc C-6286 wil follow the PPI Index for PIa8tic8 Material and Resins Manufacturing avaHable from www.bls.aov. The Index was valued at 217.1 In August of 2005, the beginning of the contract. The most recent data avaiJable i$ June 2006 and the value has Ina-eased 10 235.5. This represents an 8.5% Increase over the period of the sole supply agreement According to the agreement, the pOOe would increase by 8.5% or by $0.08 per pound. We are offering Ashland a price of SO.96 per pound, which is an inaease of $0.06. I have attached a new Sole Supply ~ 1f)'OU agree to the terms please sign and return a copy to the address on the contract. The Index has been very ftat for most of 2006. I do not anticipate further increases in the future barring unforeseen drcumstanc:es. Thank you very much for considering POlydyne products for your water treatment needs. If you have any questions, please do not hesitate to call me at (360) 931-5566. Sincerely, ~~ Technical Sales Representative SOLE SOURCE SUPPLY AGREEMENT CONTRACT NO. SELLER: SNF/Polydyne Inc. 1 Chemical Plant Road Riceboro, GA 31323 BUYER: City of Ashland 90 N Mountain Avenue Ashland, OR 97420 . For value received, Seller agrees to sell to Buyer, and Buyer agrees to buy from Seller, on the followmg terms and condItIons; 1. TERM. The term of this contract shall begin on August 1, 2006 and shall end on July 31,2007 . Annual extensions of this Agreement are possible by mutual consent subject to provisions outlined in Section 8. 2. PRODUCT. The product to be purchased and sold hereunder in set forth on Exhibit "A" (collectively and individually, the "Product"), and such Product shall conform to the specifications listed on Exhibit "A" (the "Specifications"). 3. QUANTITY. Buyer is obligated to buy from Seller, and Seller in obligated to sell to Buyer, percent ( 100 %) of Buyer's total annual volume requirement for the Product as follows: Product: Ship to Location Price: Quantity est: Container: C-6286 Ashland, OR $0.96 34,000 lbs Totes 4. PAYMENT. Buyer shall pay for all Product received under this Agreement within thirty (30) days from the date of Seller's invoice for same. Seller shall not invoice Buyer until Product is shipped. 5. SHIPPING TERMS. Seller shall ship each shipment of Product FOB Delivered 6. AMOUNT OF SHIPMENT. The quantity of Product received, and for which Buyer shall pay Seller, shall be measured in pounds by Seller's certified scales. Any clears of shortage shall be deemed waived unless made in writing and received by Seller within fifteen(15) days from buyer's receipt of the shipment in question. Shortages ofless than 1 % ofthe net weight of shipments in tank cars or wagons shall not be contested. Seller shall retain records ofthe weight of each shipment and of the certification of all scales used and immediately shall provide such to Buyer upon written ; 1 '""l ~ .~ ~ ~ . L f i 'I ] ,I request. The parties agree to exercise best efforts in good faith to resolve any discrepancies regarding the weight of any shipment. 8. PRICE ADJUSTMENT. (a) The price herein specified maybe revised Annually by written notice sent by Seller to Buyer not less than thirty (30) days before the effective date of such revision. Buyer's failure to serve Seller with written notice of objection to the proposed price revision before the effective date thereof shall be considered acceptance of such revision. Failure of Buyer and Seller to agree on a proposed price revision after such notice by Seller releases Seller without obligation and permits Buyer to purchase elsewhere the quantities required thereafter (b) Seller may increase the price of the "Product" annually on the basis of the U.S. Bureau of Labor Statistics PPI Index, "Plastic Material and Resins Manufacturing" (PMRM), PCU325211325211, Exhibit "B" (the "Index"). This index includes: propylene, acrylonitrile, formaldehyde and other key components used in the manufacture of solution polyacrylamide. The base calendar period for raw material cost comparison to adjust the selling price ofthe "Product", either up or down, shall be August 2006 to July 2007, or the most recent available data. 9. PAYMENT. The prices shall be paid in United States currency. Seller reserve the right, among other available remedies, either to cancel this contract or suspend further deliveries under this contract in the event Buyer fails to pay for anyone shipment when payment becomes due. Should Buyer's financial condition or responsibility become unsatisfactory to Seller, cash payments or satisfactory security may be required by Seller as a condition to further shipments under this contract. 10. OTHER PROVISIONS. The OTHER PROVISIONS set forth on the following pages hereof are incorporated herein as if an original part hereof. 11. ENTIRE AGREEMENT. This contract, along with all exhibits attached hereto which are incorporated herein by this reference, sets forth the entire and complete agreement regarding the subject matter hereof and may be executed in identical counterparts. SELLER: SNF/Polydvne Inc. BUYER: City of Ashland By: Lawrence D. Grizzle, Busines L~~ 1\ Date: q!llo~ Date: 9 )'/jo~ ! 1 .; >-: . j ',1 '_1 -1 IIIII 1'1 OTHER PROVISIONS A. Purchases by Affiliates. Buyer's affiliates may purchase Product required to be purchased by Buyer hereunder, and such purchases shall be credited to Buyer for purposes of its purchase obligations hereunder. An affiliate is any corporation or entity which (i) owns more than 80% of the beneficial interest in Buyer ("Buyer's Parent"), (ii) more than 80% of the beneficial interest of which is owned by Buyer's Parent, or (iii) more than 80% of the beneficial interest of which is owned by Buyer. B. Confornling Product. Seller warrants that all Product shall comply with the Specifications and makes no other representations or warranties, express, implied, statutory or otherwise, concerning the Product, the merchantability thereof, or the fitness thereof for any purpose. Buyer shall be obligated to purchase only that Product which meets the Specifications. Any claim that any Product does not meet Specifications shall be deemed waived unless made in writing and received by Seller within fifteen (15) days from Buyer's receipt of the Product in question. C. Product Testing. Seller shall analyze and retain a clearly-marked, representative sample from each shipment of Product. Seller shall retain each sample and such sample's test results for the one year and, upon written request, shall provide such to Buyer. The parties agree to exercise best efforts in good faith to resolve any discrepancies between their respective test results regarding any sample and/or shipment. D. Non-Conforming Product. Seller shall immediately replace all Product not meeting Specifications, shall reimburse Buyer for the reasonable shipping coats associated with Buyer's return of non-conforming Product, shall pay for the shipping costs associated with delivering to Buyer the replacement Product and shall be responsible for the disposal of any non-conforming Product and associated containers returned by Buyer. Buyer's sole remedy for non-conforming Product shall be for Seller to replace the defective Product as provided above at Seller's cost, and Seller shall not be liable for special, indirect or consequential damages of any Kind under this agreement or otherwise. E. Compliance with Law. Upon delivery to Buyer, Buyer assumes all responsibility and liability for compliance with all applicable federal, state and local laws and regulations relating in any way to the Product, specifically including those laws and regulations governing unloading, discharge, storage, handling, use and/or possession of Product supplied by Seller hereunder. F. Force Maieure/Hardship/Other Sources. If Buyer's ability to take or Seller's ability to deliver the Product is impaired due to circumstances beyond reasonable control, including but not limited to fire, flood, Government action, accident, labor disputes or shortage, or inability to obtain from normal sources raw material, equipment, or transportation, the one so affected shall be excused without liability from taking or making delivery to the extent of such impairment. If Seller's ability to deliver Product is reduced due '1 H ~ ,'. ~. 1 I' ',~ j - I I I I I I[ '1_ i] to any such circumstance, Seller may reduce the contract quantity in any year upon written notice to Buyer if Seller deems such reduction necessary to effect a fair allocation of the Product to users/purchasers thereof, in which case Buyer's obligation to purchase Product from Seller hereunder shall be reduced and adjusted accordingly. Notwithstanding, if Seller's ability to deliver Product is reduced due to any such circumstance, then Buyer may obtain Product from another source, and the quantity of Product obtained from another source will be credited to any minimum quantity requirement set forth in this Agreement for the respective contract year as if such had been purchased from Seller. If Buyer's inability to take Product is excused under this subparagraph. Seller's obligation to sell Product to Buyer hereunder shall be reduced and adjusted accordingly. G. Assignment. Neither party shall assign or delegate its rights or obligations under this contract without the prior written consent of the other party, which consent shall not be unreasonably withheld. Notwithstanding the foregoing, should substantially all ofthe assets of either party be purchased or otherwise acquired by an unrelated entity or person, such party may assign and delegate its rights and obligations hereunder to the acquiring person or entity. H. Binding Effect. This contract shall be binding upon the parties hereto and their respective assigns, if permitted, and successors. Specifically, any person or company which purchases or merges with either ofthe parties to this Agreement shall do so subject to the terms and conditions specified herein. 1. Applicable Law. This Agreement shall be construed and enforced in accordance with the laws of the State of Georgia without reference to the conflict or choice oflaw principles thereof. Buyer hereby consents and waives any objection to the jurisdiction of and venue in the federal and state courts located in Chatham County, Georgia, with respect to any action arising out of or relating to this contract and agrees to bring any such action in said courts. J. Severability. If any provision or subpart thereof shall be held invalid or unenforceable by any court, such holding shall not invalidate or render unenforceable the remainder of such provision or any other provisions hereof. K. Attornevs' Fees. If any action at law and equity shall be brought to recover for or on the account of any breach of, or to enforce or interpret any of the covenants, terms or conditions of this contract, the prevailing party shall be entitled to recover from the other party reasonable attorney's fees. L. Notices. All notices concerning the subject matter hereof shall be made in writing and shall be deemed to have been duly given (i) on the date of service if served personally on the party to whom notice is to be given, (ii) on the date of service if delivery is made by overnight courier on the party to whom notice is to be given at the address set forth above, or (iii) five (5)days after the date of depositing the same in the U.S. mail and mailed I 1-') .1 11,1__ -I i- '1- II Ii IUIJ 1 to the Party to whom notice is to be given, by first class mail, registered or certified, postage prepaid, and properly addressed as eat forth above. M. Waivers. No delay or failure by Seller in the exercise of any right or remedy shall operate as a waiver thereof; no single or partial exercise by Seller of any right or remedy shall preclude other or further exercise thereof or the exercise of any other right or remedy; and a waiver by Seller of any breach by Buyer shall not be construed as a waiver of any other breach by Buyer. Time is of the essence of this Agreement. N. Modification. All sales of Product are limited to and made expressly conditional on Buyer's acceptance of the foregoing terms and conditions, and Seller expressly objects to and rejects any terms and conditions that may be proposed by Buyer which are in addition to or differ from the foregoing terms and conditions. The terms and conditions of this agreement may not be modified except by written instrument executed by all parties hereto and take precedence over any inconsistent terms and conditions contained in any purchase order, confirmation, acknowledgement or other writing, now or hereafter existing, which may relate to the sale of Product between Buyer and Seller. .1 : III! ~.. ...11 CITY RECORDER'S COpy Page 1 / 1 CITY OF ASHLAND 20 E MAIN ST. ASHLAND, OR 97520 (541) 488-5300 ,flCn~lJMBER~ " 06944 VENDOR: 007621 POL YDYNE, INC. POBOX 930894 ATLANTA, GA 31193 SHIP TO: Ashland WWTP (541) 488-5348 1295 OAK STREET ASHLAND, OR 97520 FOB Point: Terms: Net Req. Del. Date: 7/1/2006 speciallnst: Req. No.: Depl: PUBLIC WORKS Contact: Terry Ellis Confirming? No, ~,QOanJitv,~ "';lioit~ ;", i !Ii '" ..., Yi1. "," !!Wi; ~ ::1J;":,""^""" j '~ \'\\ k~ ,"*~ ,~"tll1it\eti~e r ~Eft:)Q(i~" !ll\, " ,.,,, De!lcriD,tion Jl.~ . BLANKET PURCHASE ORDER "'- 36.00 Tote EMR-2580 Polymer for the WWTP 2,208.00 79,488.00 FY 2006-2007 ./ SUBTOTAL 79.488.00 BILL TO: Account Payable TAX 0.00 20 EAST MAIN ST FREIGHT 0.00 541-552-2028 TOTAL 79,488.00 ASHLAND, OR 97520 ~~~ounfNumHii;Na ..~.'Proiec~u~b,err',= ;;""a '~Oql1t~a.:t; '4A'f"count'~urn~ri~~ lI~etojeatJNurribi!~ 1ll . '. .l!Mm,oitnla ,:iii E 675.08.19.00.601 50( 79.488.00 / ~ ~~_ 7(/J7{ ~ ~ - AutK.oifzed Signatu~ ,,{( VENDOR COPY A fa. q" Ii "'t;;;b 'j, ".I ~,*1llo.$t. ::-~ '<..1 CITY OF ASHLAND REQUISITION FORM Date of Request 1'"7,/i)l'8~\1 , THIS REQUEST IS A: o Change Order(existing PO # Required Date of Delivery/Service: Vendor Name Address City, state, Zip Telephone Number Fax Number Contact Name poll d~A~ P () Bn')C AT La.. ":+..... I'" /J <... I q~o act "-( &14 ~'J q1 , Intennediate Procurement o (3) Written auotes (Copies attached) o Invitation to Bid (Copies on file) SOLICITATION PROCE Small Procurement o Less than $5,000 o Quotes (Optional) Copf of contract allached Contract # Ememencv o Written findings atlached o Quote or attached Description of SERVICES o Per attached PROPOSAL Item # Quanti? Unit "l... Description of MATERIALS Unit Price , EM ~ -2-SeO r ~;' L.."2.cB ,..;J Total Coat '2....'-1 ~~ :j:..L !""i'1' P l' Loo~ /S"\R.--zS"Bo = <:.. bLeb ~ o Per attach~ QUOTE ~1:. Project Number _ _ _ _ _ _ - _ __ Account Number6.1.S:: -<.rl-19- ~ _~!....~ " Items and selVices must be charged to the appropriate cr;count numbets for the financials to reflect the actual expenditures accurately. By signing this requisition form, I certify that the information provided above meets the City of Ashland public contracting requirements, and the documentation can be provided upon request Employee Signature:~l-" ':J c.. 't.Qrz :.... SupervisorlDept Head Signature: ~ .r CITY OF ASHLAND Memo DATE: July 11, 2006 TO: Lee Tuneberg, Finance Director FROM: Teny Ellis, Wastewater Systems Supervisor RE: Findings for Sole-Source Procurement- Polymer The City of Ashland operates their wastewater plant under a permit issued by the Department of Environmental Quality. In past years we have tried numerous polymer products, to assist us in dewatering our solids generated daily at the plant. We settled on a product offered by Polydyne. It not only works the best for us, it is also the least expensive. Thank you, Terry C Ellis Wastewater Systems Supervisor DEPARTMENT HERE Street Address Ashland, Oregon 97520 www.ashland.or.us TeI:541~ Fax: 541-488-5311 TTY: 000-735-2900 ,.,