Title
Resolution to Approve Purchase of Carbon Dioxide (CO2) for Water Treatment Services from Roy Smith Company for ITB 4788 (estimated $72,800.00/year)
Memorandum
Your approval is requested to authorize the purchase of approximately 560 tons of Carbon Dioxide (CO2) at $130.00/ton. The Water Treatment Services Unit uses CO2 in the softening process and to reduce the cost of disinfection. The estimated total cost of this chemical is $72,800.00/year.
ITB 4788 was advertised on the City's website and on the Michigan Inter-governmental Trade Network (MITN) website. The City received the following bids:
Nippon Sanso Matheson, Inc. $182.00/ton
Roy Smith Company $130.00/ton
It is recommended that Council accept the bid and award a purchase order to Roy Smith Company, as the lowest responsible bidder, to provide the Water Treatment Service Unit with Carbon Dioxide (CO2).
It is also recommended that the purchasing order 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 requirements of the City’s Non-Discrimination ordinance.
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 Carbon Dioxide (CO2) in its water softening process;
Whereas, Contracts for supplying estimated requirements are the most stable and cost-effective way of meeting water treatment needs;
Whereas, Roy Smith Company’s bid is the lowest responsible bidder for the supply of CO2 per Bid ITB 4788;
Whereas, Roy Smith Company complies with the requirements of the Non-Discrimination Ordinance; and
Whereas, Funding for the purchase of CO2 is available in the FY27 approved Operation and Maintenance Budget of the Water Supply System Fund;
RESOLVED, That the City Council accepts Roy Smith Company’s bid of $130.00/ton of Carbon Dioxide (CO2) in accordance with the terms of Bid No. ITB 4788;
RESOLVED, The City Council approves the issuance of a purchase order with Roy Smith Company for the purchase of CO2 in accordance with this resolution at $130.00/ton, for an estimated cost of $72,800.00 for FY27;
RESOLVED, The Water Treatment Services Unit Manager be authorized to purchase from another vendor if Roy Smith Company is unable to provide this good in a timely manner;
RESOLVED, The City Administrator be authorized to renew the purchase order for up to three one-year periods provided both parties agree to an extension and subject to availability of funding and limited to the price escalation clause detailed in the ITB; and
RESOLVED, The City Administrator be authorized to take the necessary administrative actions to implement this resolution.