Title
Resolution to Approve Purchase of Hydrofluorosilicic Acid for Water Treatment Services from Mosaic Global Sales (estimated $28,220.00/yr)
Memorandum
Your approval is requested to authorize the purchase of hydrofluorosilicic acid for the Water Treatment Services Unit. The estimated cost of this chemical for FY17 is $28,220.00.
The Centers for Disease Control has established that 0.7mg/L of fluoride in the drinking water is safe, healthy, and effective for preventing tooth decay. The City’s source water normally has 0.3mg/L of fluoride. The City uses hydrofluorosilicic acid to bring the fluoride level to the CDC’s recommended level.
A resolution passed by City Council in 1950 directed City staff to fluoridate the water.
Bids were obtained through the 2016 Mid-Michigan Drinking Water Consortium Bulk Chemicals Bid. The Mid Michigan Consortium was formed in 2014 by utilities in the mid-Michigan area that soften drinking water with quicklime to address chemical supply quality, competitive pricing, and residual disposal. The Consortium members include: Lansing Board of Water and Light; City of Battle Creek; City of Jackson; City of Howell; City of Ann Arbor; City of Fenton; East Lansing Meridian Water & Sewer Authority; Plainfield Township; City of Owosso; Marion-Howell-Osceola-Genoa Water Authority; and Tri-County Regional Planning Commission.
The following bids for hydrofluorosilicic acid were received:
Mosaic Global Sales $415.00/ton
PVS Nolwood $510.00/ton
Alexander Chemical $455.00/ton
Univar USA Inc $420.16/ton(wet)
Solvay Fluorides $560.00/ton
It is recommended that the bid be accepted and the purchase order be awarded to Mosaic Global Sales as the lowest responsible bidder, to provide hydrofluorosilicic acid to the Water Treatment Service Unit for FY17.
It is also recommended that the purchasing agreement may be renewed for three (3) additional one (1) year periods, provided that by 90 days prior to end of the contract both parties agree to an extension at no increase in cost if the vendor is agreeable and if the City deems it to be in its best interest.
Funds are specifically budgeted for this purchase in the approved FY17 Operations and Maintenance
Budget for the Water Supply System Fund.
Staff
Prepared by: Larry Sanford, Assistant Manager, Water Treatment Services
Reviewed by: Craig Hupy, Public Services Area Administrator
Approved by: Tom Crawford, Interim City Administrator
Body
Whereas, The Water Treatment Services Unit adds hydrofluorosilicic acid to the water supply for the prevention of tooth decay;
Whereas, Contracts for supplying estimated requirements are the most stable and cost-effective way of meeting the water treatment needs;
Whereas, Key Chemical Inc. is the lowest responsible bidder received for the supply of hydrofluorosilicic acid based on Water Treatment Services’ quality requirements per the 2016 Mid- Michigan Drinking Water Consortium Bulk Chemicals Bid;
Whereas, Funding for the purchase of hydrofluorosilicic acid is available in the approved FY17 Operation and Maintenance Budget of the Water Supply System Fund; and
Whereas, Mosaic Global Sales complies with the requirements of the Non-Discrimination Ordinance;
RESOLVED, That Council accepts the bid of Mosaic Global Sales of $415.00/ton for the Water Treatment Services Unit in accordance with the terms of the 2016 Mid-Michigan Drinking Water Consortium Bulk Chemicals Bid;
RESOLVED, That the City Administrator be directed to enter into a purchasing agreement in accordance with this resolution at a projected cost of $28,220.00 for FY17;
RESOLVED, That the City Administrator be authorized to renew the purchase order for up to three one-year periods providing both parties agree to an extension and subject to the availability of funding;
RESOLVED, That the City Administrator be authorized and directed to sign a purchase order with Mosaic Global Sales for the purchase of hydrofluorosilicic acid;
RESOLVED, That the City Administrator be directed to accept the next lowest responsible bidder if Key Chemical Inc. is unable to furnish adequate supplies during the life of their Contract; and
RESOLVED, That the City Administrator be authorized to take all necessary actions to implement this resolution.