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File #: 15-0591    Version: 1 Name: 6/15/15 - WTP Hydrofluorosilicic Acid Purchase
Type: Resolution Status: Passed
File created: 6/15/2015 In control: City Council
On agenda: 6/15/2015 Final action: 6/15/2015
Enactment date: 6/15/2015 Enactment #: R-15-199
Title: Resolution to Approve Purchase of Hydrofluorosilicic Acid for Water Treatment Services from Key Chemical Inc. (estimated $28,100.32/yr)
Attachments: 1. Mid-Michigan Consortium Chemicals Bid.pdf, 2. Mid-Michigan Consortium Chemicals - Bid Tab (2).pdf, 3. Key Chemical - Mid Mich - Fluoride.pdf
Title
Resolution to Approve Purchase of Hydrofluorosilicic Acid for Water Treatment Services from Key Chemical Inc. (estimated $28,100.32/yr)
Memorandum
Your approval is requested to authorize the purchase of hydrofluorosilicic acid for the Water Treatment Services Unit.  The estimated cost of this chemical for FY16 is $28,100.32.
 
The Centers for Disease Control has established that 0.7mg/L of fluoride in the drinking water is safe, healthy, and effective for preventing tooth decay.  The City's source water normally has 0.3mg/L of fluoride.  The City uses hydrofluorosilicic acid to bring the fluoride level to the CDC's recommended level.
 
A resolution passed by City Council in 1950 directed City staff to fluoridate the water.
 
Bids were obtained through the 2015 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 following bids for hydrofluorosilicic acid were received:
 
      Key Chemical             $413.24/ton
      PVS Nolwood            $490.00/ton
      Alexander Chemical            $507.00/ton
      Solvay Fluorides            $600.00/ton
 
It is recommended that the bid be accepted and the purchase order be awarded to Key Chemical Inc., as the lowest responsible bidder, to provide hydrofluorosilicic acid to the Water Treatment Service Unit for FY16.
 
Funds are specifically budgeted for this purchase in the approved FY16 Operations and Maintenance Budget for the Water Supply System Fund.
Staff
Prepared by:  Larry Sanford, Assistant Manager, Water Treatment Services
Reviewed by:  Craig Hupy, Public Services Area Administrator
Approved by:  Steven D. Powers, City Administrator
Body
Whereas, The Water Treatment Services Unit adds hydrofluorosilicic acid to the water supply for the prevention of tooth decay;
 
Whereas, Contracts for supplying estimated requirements are the most stable and cost-effective way of meeting the water treatment needs;
 
Whereas, Key Chemical Inc. is the lowest responsible bidder received for the supply of hydrofluorosilicic acid based on Water Treatment Services' quality requirements per the 2015 Mid-Michigan Drinking Water Consortium Bulk Chemicals Bid;
 
Whereas, Funding for the purchase of hydrofluorosilicic acid is available in the approved FY16 Operation and Maintenance Budget of the Water Supply System Fund; and
 
Whereas, Key Chemical Inc. complies with the requirements of the Non-Discrimination Ordinance;
 
RESOLVED, That Council accepts the bid of Key Chemical Inc. of $413.24/ton for the Water Treatment Services Unit in accordance with the terms of the 2015 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 $28,100.32 for a one-year term ending on June 30, 2016;
 
RESOLVED, That the City Administrator be authorized and directed to sign a purchase order with Key Chemical Inc. for the purchase of hydrofluorosilicic acid;
 
RESOLVED, That the City Administrator be directed to accept the next lowest responsible bidder if Key Chemical Inc. is 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.