Good afternoon Mayor Wynn and Councilmenbers.  Today, I thought I’d talk about money matters, specifically, the high cost of fluoridation.  I’d heard that the price of fluoride chemicals was rising fast, due to a shortage.  I don’t know how there can be a shortage of smokestack scrubber liquor.  Maybe it’s all accumulating in our bones and going out of circulation. 

Anyway, when I went online to look for some comparative prices, I discovered that just last month, on March 26, the Council entered into a new contract with the supplier, Lucier Chemical Industries, Ltd.—and at higher rates.  I was shocked—that possibility hadn’t been on my radar at all since the existing contract had at least another year to run.  But then I learned that in October, Lucier sent the City a letter stating their intention not to renew the then-current contract.  And that, through a process hazy to me, triggered the re-negotiation. 
 
So let’s compare.  Here’s the bid tabulation for the previous, interrupted contract, which was slated to run March 17, 2008 through March 16, 2010.  Price per ton:  $470. Cost per year:  $587,500 each for two years, with three 12-month extension options at the same rate.  By contrast, the bid tab for the new contract—set to run April 1st of this year through March 31, 2011, shows a price per ton of $662, at a cost of $728,200 each for two years, with three 12-month extension options set at $910,250 per year.  These figures show, first, a jump of about 30% in unit cost and second, a time near at hand when we’ll be looking at close to $1 million annually in fluoridation chemicals alone—not counting labor.  All this information, plus more, comes from the Austin public records website.  Search on "Lucier."
http://www.cityofaustin.org/edims/search.cfm

I hadn’t been using this platform to ask questions, but I find it hard to grasp why, with four more years at a lower price seemingly locked in by the previous contract, the Council has negotiated this new one with Lucier.  Perhaps you can help me to understand.  Thank you. 


                                               
 

Mayor Will Wynn:  "Thank you, Rae. Good question. In fact, I'd like to. . .if we could just get a simple memo from staff here this week before next Council meeting as to the dynamics of that contract. . .[inaudible]. . .Olenick that Council doesn't negotiate contracts, we approve items on our agenda, and so I too would be curious as to the timing of that contract.  But thank you.

Stay tuned.