Title
Resolution to Approve Purchase of Sodium Hexametaphosphate (SHMP) for Water Treatment Plant Services from Carus, LLC, Bid No. ITB 4786 (estimated $64,400.00/year)
Memorandum
This resolution seeks approval to purchase approximately 63,100 pounds of Sodium Hexametaphosphate (SHMP), at $161.00/CWT from Carus, LLC. The Water Treatment Services Unit uses SHMP to stabilize the water after softening to prevent interruption of the filtering process. The estimated total cost of this chemical is $64,400.00/year.
ITB 4786 was advertised on the City's website and on the Michigan Inter-governmental Trade Network (MITN) website. The following bids were received:
Brenntag Great Lakes, LLC $325.00/CTW
Sterling Water Technologies $172.12/CWT
Carus, LLC $161.00/CTW
Water Engineering Inc. $307.00/CWT
Water Solutions Unlimited $168.00/CWT
Chemrite, Inc. $180.95/CWT
Alexander Chemical Corp $171.00/CWT
Shannon Chemical Corp. $243.14/CWT
It is recommended that the resolution be approved to satisfy the Water Treatment Service Unit’s need for SHMP to stabilize the water after softening to prevent interruption of the filtering process and properly treat drinking water.
Carus, LLC submitted the lowest responsible bid among 8 bidders (see attached). Staff recommends Council accept the bid and award a purchase order to Carus, LLC.
Carus, LLC complies with the requirements of the City’s Non-discrimination ordinance.
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.
Budget/Fiscal Impact: Funds are budgeted in the FY27 Operations and Maintenance Budget for the Water Supply System Fund 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 Sodium Hexametaphosphate (SHMP) in its water stabilization process;
Whereas, Contracts for supplying estimated requirements are the most stable and cost-effective way of meeting water treatment needs;
Whereas, Carus, LLC bid to provide the City SHMP was the lowest responsible bid in response to ITB 4786;
Whereas, Carus, LLC complies with the requirements of the Non-Discrimination Ordinance; and
Whereas, Funding for the purchase of SHMP is available in the FY27 approved Operation and Maintenance Budget of the Water Supply System Fund;
RESOLVED, That the City Council accepts Carus, LLC’s bid of at $161.00/CWT for Sodium Hexametaphosphate (SHMP) in accordance with the terms of Bid No. ITB 4786;
RESOLVED, The City Council approves the issuance of a purchase order to Carus, LLC for SHMP in accordance with this resolution at $161.00/CWT, for an estimated cost of $64,400.00 for FY27;
RESOLVED, That the Water Treatment Services Unit Manager be authorized to procure the same amount of SHMP from another vendor if Carus, LLC is unable to furnish the chemical;
RESOLVED, That the City Administrator be authorized to renew the purchase agreement for up to three (3), one-year (1) periods subject to availability of funding and limited to the price escalation clause 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.