Title
Resolution to Approve Purchase of Liquid Oxygen (LOX) from Roy Smith Company for ITB 4785 (Estimated $80,000.00/ Year)
Memorandum
Your approval is requested to authorize the purchase of approximately 200,000 CCF of liquid oxygen at $0.40/CCF from Roy Smith Company. The Water Treatment Services Unit (WTSU) uses liquid oxygen to generate ozone, the primary disinfectant in the drinking water treatment process. The estimated total cost of this chemical is $80,000.00/year.
ITB 4785 was advertised on the City's website and on the Michigan Inter-governmental Trade Network (MITN) website. The following bids were received:
Roy Smith Company $0.40/Per CCF
Metro Welding Supply $0.70/Per CCF
Roy Smith Company was the lowest responsible bidder in response to ITB 4785, and staff recommends that Council authorize a purchase order with Roy Smith Company for the City’s liquid oxygen needs.
It is also recommended that the purchasing agreement may be renewed for three (3) additional (1) year periods, provided both parties agree to the extension, subject to the availability of funding, and limited to the price escalation tied to the PPI as outlined in the bid documents. It is also recommended that in the event the vendor is unable or unwilling to furnish adequate supplies during the term of the purchase agreement, the City accept the bid of the next lowest responsible vendor or negotiate the purchase of necessary supplies on the open market subject to the availability of funding.
Roy Smith Company complies with the City’s Non-discrimination and Conflict of interest ordinances.
Budget/Fiscal Impact: Funds are specifically budgeted for this purchase in the FY27 Water Supply System Operations and Maintenance Budget, and will be included in future fiscal years for potential renewals if so, approved by Council.
With potential renewals, the results of this ITB may result in total expenditures greater than $90,000.00, requiring Council approval.
Staff
Prepared by: Molly Maciejewski, Water Treatment Services Manager
Reviewed by: Jordan Roberts, Public Services Area Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The Water Treatment Services Unit uses Liquid Oxygen to generate ozone, the City’s primary drinking water disinfectant;
Whereas, Roy Smith Company provided the lowest responsible bid in response to ITB No. 4785; and
Whereas, Roy Smith Company complies with the City’s non-Discrimination Ordinance and Conflict of Interest Ordinance;
RESOLVED, That City Council accepts the Roy Smith Company bid of $0.40-CCF for liquid oxygen in accordance with the terms of Bid No. ITB 4785;
RESOLVED, That City Council approves the issuance of a purchase order with Roy Smith Company for the purchase of liquid oxygen in accordance with this resolution at $0.40/CCF, for an estimated cost $80,000.00 for FY27;
RESOLVED, That the City be authorized to purchase from another vendor if Roy Smith Company is unable to timely furnish the chemical at its bid pricing;
RESOLVED, That the City Administrator be authorized to renew the purchase order for up to three (3) additional one-year (1) periods subject to the availability of funding and subject to the price increases tied to the Producers Price Index (PPI) as outlined in the bid documents; and
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution.