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File #: 25-0777    Version: 2 Name: 6/2/25 - Purchase of Liquid Oxygen (LOX) - ITB 4769
Type: Resolution Status: Passed
File created: 6/2/2025 In control: City Council
On agenda: 6/2/2025 Final action: 6/2/2025
Enactment date: 6/2/2025 Enactment #: R-25-192
Title: Resolution to Approve Purchase of Liquid Oxygen from Linde Inc. ITB 4769 (Estimated $80,000.00/ Year)
Attachments: 1. Linde.pdf, 2. Bid Tab and Attendance .pdf, 3. itb_4769_document.pdf

Title

Resolution to Approve Purchase of Liquid Oxygen from Linde Inc. ITB 4769 (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 Linde Inc. 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 for FY26.

 

ITB 4769 was advertised on the City's website and on the Michigan Inter-governmental Trade Network (MITN) website. Three (3) bids were received and publicly opened on April 2, 2025:

 

Linde Inc. $0.40/Per CCF

           Matheson Tri-Gas $0.445/Per CCF

           Airgas $0.70/Per CCF

 

Linde Inc. was the lowest responsible bidder in response to ITB 4769, and staff recommends that Council authorize a purchase order with Linde Inc. for the City’s liquid oxygen needs. Because liquid oxygen is necessary to disinfect the water via ozone generation, it is also recommended that Council authorize purchase of liquid oxygen from another vendor if Linde, Inc. is unable to provide this product in a timely manner or at the bid pricing.

 

Staff also recommends that Council authorize the City Administrator to renew the purchase order for up to two (2), one-year (1) periods, if in the best interest of the City, and subject to annual price increases tied to the Producers Price Index (PPI) as outlined in the bid documents, and subject to the availability of funding.

 

Linde Inc. complies with the City’s Non-discrimination and Conflict of interest ordinances.

  

Budget/Fiscal Impact: Funds are specifically budgeted for this purchase in the FY26 Water Supply System Operations and Maintenance Budget, and will be included in the FY27  budget, if so, approved by Council.

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, Linde Inc. provided the lowest responsible bid in response to ITB No. 4769;

 

Whereas, Linde Inc. complies with the City’s non-Discrimination Ordinance and Conflict of Interest Ordinance;

 

RESOLVED, That Council accepts the Linde Inc. bid of $0.40-CCF for liquid oxygen in accordance with the terms of Bid No. ITB 4769;

 

RESOLVED, That the City Administrator be directed to approve a purchase order with Linde Inc. for the purchase of liquid oxygen in accordance with this resolution at $0.40/CCF, for a projected cost of approximately $80,000.00 for FY26;

 

RESOLVED, That the City be authorized to purchase from another vendor if Linde Inc. 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 two (2) 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, The City Administrator be authorized to take the necessary administrative actions to implement this resolution.