Title
Resolution to Approve Purchase of Quicklime for Water Treatment from Carmeuse Lime, Beachville Bid No. ITB-3950 (estimated $704,000.00/yr)
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 estimated cost of this chemical for FY 2008/09 is $704,000.00.
The following bids were received:
Carmeuse Inc; Beachville, Ontario - $163.60/ton + $18.00/ton during weight restrictions
Western Lime Corp - $124.00/ton + $28.00/ton during weight restrictions
Huron Lime - $124.60/ton delivered
Carmeuse Inc; River Rouge, MI - $128.06/ton + $18.00/ton during weight restrictions
Mississippi Lime - $160.00/ton + fuel surcharge
Although Carmeuse Lime in Beachville, Ontario is not the low bidder, their product is "hard burned" and therefore much less prone to abrading during unloading. This minimizes the dust that accumulates in the storage bins and greatly reduces the safety hazards from flooding the uncontrolled fluidized flow of powder from the storage silos into the feeder and the area. The quicklime from the other four locations is medium burned and creates more dust during unloading, creating conditions that result in treatment process interruptions, equipment damage, and hazardous conditions for employees. Carmeuse Beachville is, therefore, the most cost effective option over all. Therefore, we recommend that Carmeuse Lime in Beachville, Ontario be approved as the supplier of the Water Treatment Services Unit's quicklime requirements for FY 2009. If there are interruptions of lime supplies from Carmeuse Lime for short periods of time, the next lowest bidder could be used.
It is also recommended that the purchasing agreement be extended for up to two additional years 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 FY 2009 Operations and Maintenance Budget for the Water Supply System.
Staff
Prepared by: Larrry Sanford, Assistant Manager, Water Treatment Services
Reviewed by: Sue F. McCormick, Public Services Administrator
Approved by: Roger W. Fraser, City Administrator
Body
Whereas, The Water Treatment Services Unit uses quicklime to soften 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, Beachville submitted the lowest responsible bid for the supply of quicklime, based on Water Treatment Services' quality requirements, per Bid No. ITB-3950; and
Whereas, Carmeuse Lime Inc. received Human Rights approval on May 28, 2008;
RESOLVED, That Council accepts the bid of Carmeuse Lime, Beachville of $163.60/ton (plus an additional $18.00/ton during frost laws) for the Water Treatment Services Unit in accordance with the terms of Bid No. ITB-3950;
RESOLVED, That the City Administrator be directed to enter into a purchasing agreement in accordance with this resolution at a projected cost of approximately $704,000.00 for a one-year term ending on June 30, 2009;
RESOLVED, That Council authorize the City Administrator to renew the agreement for up to two one-year periods provided both parties agree to an extension subject to the annual appropriation of funds in FY10 and FY11;
RESOLVED, That the City Administrator be authorized and directed to sign a purchase order with Carmeuse Lime, Beachville for the purchase of quicklime;
RESOLVED, That the City Administrator be directed to accept the next lowest responsible bidder if Carmeuse Lime, Beachville is unable to furnish adequate supplies; and
RESOLVED, That the purchase of quicklime is to be funded from the approved FY09 Operation and Maintenance Budgets of the Water Supply System.