Title
Resolution to Approve Purchase of Sodium Hypochlorite for Water Treatment Services from KA Steel (estimated $107,083.00/yr)
Memorandum
Your approval is requested to authorize the purchase of sodium hypochlorite for the Water Treatment Services Unit. The Water Treatment Plant uses sodium hypochlorite to maintain disinfection of drinking water in the distribution system. The estimated cost of this chemical for FY17 is $107,083.00/yr.
Bids were obtained through the 2016 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 sodium hypochlorite were received:
KA Steel: $125.95/ton (wet)
JCI Jones Chemical: $130.00/ton (wet)
Alexander Chemical: $148.00/ton
PVS Nolwood: $150.00/ ton (wet)
Rowell Chemical: $182.94/ton
It is recommended that Council accept the bid and award a purchase order to KA Steel, as the lowest responsible bidder, to provide the Water Treatment Service Unit with sodium hypochlorite for FY17.
It is also recommended that the purchasing agreement may be renewed for three (3) additional one (1) year periods, provided that by 90 days prior to end of the contract both parties agree to an extension at no increase in cost if the vendor is agreeable and if the City deems it to be in its best interest.
Funds are specifically budgeted for this purchase in the approved FY17 Operations and Maintenance Budget for the Water Supply System Fund. Future contract...
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