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 M...
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