Title
Resolution to Approve Bulk Chemical Purchases for Sodium Hypochlorite (JCI Jones Chemical - $103,000.00/yr), Hydrofluosilicic Acid (Carus Corporation- approximately $23,000.00/yr), and Pebble Quicklime (Carmeuse Lime, approximately $622,000.00/yr) for the Water and Wastewater Treatment Plants (estimated $748,000.00/yr)
Memorandum
Your approval is requested to authorize the purchase of bulk chemicals - sodium hypochlorite, hydrofluosilicic acid, and pebble quicklime-used in treatment processes at the water and wastewater treatment plants.
In 2017, bids were obtained through the 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 Water Treatment Plant uses sodium hypochlorite to maintain disinfection of drinking water in the distribution system. The estimated cost of this chemical for FY18 is $103,000.00/yr for approximately 850 tons.
Sodium Hypochlorite bids were as follows:
|
Company |
Unit |
Price |
|
JCI Jones Chemical |
ton (wet) |
$120.28 |
|
Olin Corp (KA Steel) |
ton |
$122.95 |
|
PVS Nolwood |
ton |
$198.00 |
|
Carus Corporation |
ton |
$141.60 |
|
Rowell Chemical |
ton |
$182.00 |
The Centers for Disease Control has established that 0.7 mg/L of fluoride in drinking water is safe, healthy, and effective for preventing tooth decay. The City’s source water contains approximately 0.3 mg/L of fluoride. The City uses hydrofluosilicic acid to adjust the fluoride level to meet Center for Disease Control’s recommendation. The estimated cost of this chemical for FY18 is approximately $23,000.00 for 68 tons.
Hydrofluosilicic Acid bids were as follows:
|
Company |
Unit |
Price: 40,000 lbs. Shipment |
Total Cost for Shipments |
|
Control Chem Canada |
ton |
$580.00 |
$1,740.00 |
|
Carus Corporation |
ton |
$337.00 |
$1,031.00 |
|
PVS Nolwood |
ton |
$385.00 |
$2,771.00 |
|
Mosaic |
ton |
$382.00 |
$1,172.00 |
|
Univar |
ton |
$345.00 |
$1,035.00 |
|
Solvay Fluorides |
ton |
$485.00 |
$2,207.00 |
The Water Treatment Plant uses quick lime for softening the drinking water. The Wastewater Treatment Plant (WWTP) uses lime for biosolids conditioning. The estimated cost for this chemical for FY18 is $535,000.00 for the Water Treatment Plant (approximately 4,300 tons) and $87,000.00 for the WWTP (approximately 700 tons).
Pebble Quicklime bids were as follows.
|
Company |
Unit |
Price |
|
Carmeuse Lime |
ton |
$123.99 |
|
Graymont Western Lime |
ton |
$136.60 |
It is recommended that purchase orders be awarded to JCI Jones Chemical, Carus Corporation, and Carmeuse Lime as the lowest responsible bidders, respectively, for sodium hypochlorite, hydrofluosilicic acid, and pebble quicklime for FY18.
It is also recommended that the purchasing agreement may be renewed for three (3) additional (1) year periods, provided that by 90 days prior to the end of the contract both parties agree to an extension at no increase in cost if the vendor is agreeable, and the City deems it to be in the best interest, and funding is appropriated by Council.
Funds are specifically budgeted for this purchase in the approved FY18 Operations and Maintenance Budget for the Water Supply System Fund and FY18 Operations and Maintenance budget for the Sewage Disposal System.
JCI Jones Chemical, Carus Corporation, and Carmeuse Lime comply with the requirements of the Non-Discrimination Ordinance;
Staff
Prepared by: Larry Sanford, Assistant Manager, Water Treatment Services
Reviewed by: Craig Hupy, Public Services Area Administrator
Approved by: Howard S. Lazarus, City Administrator
Body
Whereas, Sodium hypochlorite is used as a disinfectant in the treatment of drinking water;
Whereas, The Water Treatment Plant uses pebble quicklime to soften the drinking water to meet water quality objectives;
Wherea, The Wastewater Treatment Plant uses pebble quicklime to condition biosolids to meet regulatory requirements;
Whereas, The Water Treatment Plant uses hydrofluosilicic acid to adjust the fluoride level in drinking water to meet the Center for Disease Control’s recommendation for the prevention of tooth decay;
Whereas, JCI Jones Chemical, Carus Corporation, and Carmeuse Lime were the lowest responsible bidders in the 2017 Mid-Michigan Drinking Water Consortium Bulk Chemicals invitation to bid;
Whereas, Funding for the purchase of these chemicals available in the approved FY18 Operations and Maintenance Budget for the Water Supply System Fund and FY18 Operations and Maintenance Budget for the Sewage Disposal System; and
Whereas, JCI Jones Chemical, Carus Corporation, and Carmeuse Lime comply with the requirements of the Non-Discrimination Ordinance;
RESOLVED, That Council accepts the bid of JCI Jones Chemical for $120.28 wet ton for Sodium Hypochlorite, Carus Corporation for $337.00 a ton for hydrofluosilicic acid, and Carmeuse Lime for $123.99 a ton for pebble quicklime for the Water Treatment Plant and Wastewater Treatment Plant in accordance with the terms of the 2017 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 $103,000.00 for JCI Jones Chemical for sodium hypochlorite for a one-year term ending on June 30, 2018;
RESOLVED, That the City Administrator be directed to enter into a purchasing agreement in accordance with this resolution at a projected cost of $23,000.00 for Carus Corporation for hydrofluosilicic acid for a one-year term ending on June 30, 2018;
RESOLVED, That the City Administrator be directed to enter into a purchasing agreement in accordance with this resolution at a projected cost of $622,000.00 for Carmeuse Lime for pebble quicklime for a one-year term ending on June 30, 2018;
RESOLVED, That the City Administrator be authorized to renew each of the purchasing agreements for up to three one-year periods, provided both parties agree to the extension and subject to the availability of funding;
RESOLVED, That the City Administrator be directed to accept the next lowest responsible bidder if any of the vendors are 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.