Title
Resolution to Approve Purchase of Quicklime for Water Treatment from Carmeuse Lime Inc; Beachville Bid No. ITB-4157 (estimated $345,000.00/6 months)
Memorandum
Your approval is requested to authorize the purchase of quicklime for the Water Treatment Services Unit. The Water Treatment Plant uses quicklime as the most cost effective method for softening the drinking water. The Water Treatment Plant is in the process of constructing a new lime feed system that when complete, will use a higher quality of quicklime than the current system. Therefore, bids were requested to supply the current grade of quicklime for the first six months of FY12, until the new lime feed system is operational. The estimated cost of this chemical for the first six months of FY12 is $345,000.00.
The only bid received was:
Carmeuse Lime Inc; Beachville - $172.19/ton + $1,320.00/load during weight restrictions
It is recommended that the resolution be approved to satisfy the Water Treatment Service Unit's requirement of quicklime for the first six months of FY12 from Carmeuse Lime Inc in Beachville, Ontario as the lowest responsible bidder.
It is also recommended that the purchasing agreement be extended for up to an additional six months on a month by month basis at no increase in cost if the vendor is agreeable, and if the City deems it to be in its best interest. This extension will be necessary if there are delays in completing the installation of the new lime feed system.
Funds are specifically budgeted for this purchase in the approved FY12 Operations and Maintenance Budget for the Water Supply System.
Staff
Prepared by: Molly Wade, Manager, Water Treatment Services
Reviewed by: Sue F. McCormick, Public Services Administrator
Approved by: Tom Crawford, Interim City Administrator
Body
Whereas, The Water Treatment Services Unit softens the drinking water to meet water quality objectives;
Whereas, Quicklime is the most cost effective method for softening City's drinking water;
Whereas, Contracts for supplying estimated requirements are the most stable and cost-effective way of meeting the water treatment needs;
Whereas, Carmeuse Lime Inc; Beachville's bid is the only bid received for the supply of quicklime, based on Water Treatment Services' quality requirements, per Bid No. ITB-4157; and
Whereas, Carmeuse Lime Inc received Human Rights approval on May 19, 2011;
RESOLVED, That Council accepts the bid of Carmeuse Lime Inc; Beachville of $172.19/ton (plus an additional $1,320.00/load during frost laws) for the Water Treatment Services Unit in accordance with the terms of Bid No. ITB-4157;
RESOLVED, That the City Administrator be directed to enter into a purchasing agreement in accordance with this resolution at a projected cost of approximately $345,000.00 for a six-month term ending on December 30, 2011;
RESOLVED, That Council authorize the City Administrator to renew the agreement for up to six one-month periods provided both parties agree to an extension;
RESOLVED, That the City Administrator be authorized and directed to sign a purchase order with Carmeuse Lime Inc; Beachville for the purchase of quicklime; and
RESOLVED, That the purchase of quicklime be funded from the approved FY12 Operation and Maintenance Budgets of the Water Supply System.