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From: Richard Meckes <br />To: Richard Meckes <br />Subject: Chemtrade <br />Date: Monday, March 18, 2019 3:19:26 PM <br />From: Peters, Paul[mailto:PPetersPchemtradelogistics.com] <br />Sent: Wednesday, December 19, 2018 10:14 AM <br />To: Purchasing Division <purchasingPircgov.com> <br />Cc: Martin, Vincent <VMartinPchemtradelogistics.com> <br />Subject: Chemtrade Alum Pricing = Indian River County, FL <br />December 19, 2018 <br />Ms. Diane Lystlund <br />Buyer — Indian River County <br />400 <br />ange <br />ven <br />ue <br />Orlando, II 32801 <br />Dear Ms. Lystlund, <br />I am writing to you as Chemtrade is the current supplier to you for Liquid Aluminum Sulfate <br />(Alum) as part of your water treatment chemical needs. Going into 2019 we are seeing <br />significant cost increases for making and delivering Alum to your facility. In fact, you are <br />receiving this due to a review of our accounts and we will be losing cash at the current price, <br />in essence paying Indian River County to order Alum from Chemtrade. <br />Here are a few points to help justify and clarify our price request. <br />1. The US government has instituted tariffs on imported Aluminum Products. This has had <br />a greatly increased effect ont he cost of alumina in all forms, as imported materials now <br />have hefty tariff charges. This has caused the cost of raw alumina to increase globally <br />well above market indexes for imported material as well as from the domestic suppliers. <br />2. Sulfuric Acid has seen dramatic increases for 2019. In many cases we have seen our <br />plants receive increases as much as $40+ per ton for 2019. At our Tampa Plant, which is <br />what supplies your account, we received a $53/Ton increase for 2019. Alum consists of <br />almost 50% Acid, therefore the Alum costs from acid increase alone has gone up $26.50 <br />per dry ton. <br />3. As a result of significant shortage in truck drivers in the US trucking rates have seen <br />unprecedented increases. In mid -2018, Chemtrade received rate increases from our <br />tank truck common carrier that resulted in 50-70% increases, for many hauls, in our <br />freight costs to deliver product. These are costs that were not able to be captured and <br />taken into consideration in the original bid which was conducted prior to Chemtrade <br />receiving the increase. <br />140 <br />