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CONSIDERATION AND AWARDING OF BID 1617-26 FOR THE PURCHASE OF CARBON DIOXIDE FOR THE WATER TREATMENT PLANT.
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BACKGROUND: Carbon dioxide is used in the treatment process at the Water Treatment Plant. On November 17, 2016, the bids were opened for Bid 1617-26 for water treatment chemicals (carbon dioxide bulk), for use at the Water Treatment Plant. Funds in the amount of $820,998 have been budgeted in the FYE 2017 Budget, Water Treatment Plant Operating Chemicals (Account 031-5534-461.31-08) for the purchase of all treatment chemicals.
DISCUSSION: Specifications were sent to three (3) vendors and three (3) bids were received for carbon dioxide at the Water Treatment Plant. The lowest and best bid meeting all specifications was submitted by POET Ethanol Products in the amount of $125 per ton for the Water Treatment Plant. This compares to a cost of $147 per ton last year with a decrease of a little less than 8% for the Water Treatment Plant.
RECOMMENDATION: Purchases will be made throughout FYE 2017. Bids have been examined by staff and found to be in order and proper as to form. Based upon the above information, Staff recommends acceptance of the lowest and best bid meeting specifications to POET Ethanol Products.