Title
Resolution to Approve the Purchase of High Calcium Quicklime from Huron Lime, Inc. for the Wastewater Treatment Plant, Bid No. ITB-3950 ($261,660.00 - estimated for FY09)
Memorandum
Your approval is requested to authorize the purchase of high calcium quicklime from Huron Lime, Inc. for the City’s Wastewater Treatment Plant (WWTP), at an estimated cost of $261,660.00 for FY09. The WWTP uses high calcium quicklime to stabilize biosolids for beneficial reuse by land application or disposal in a landfill.
The current quicklime purchase agreement with Huron Lime, Inc. terminates on July 16, 2008. This agreement provided for two one-year extensions under its original terms and conditions. Huron Lime, Inc.’s decision not to extend the purchase agreement appears to be based on added expenses due to increased fuel costs. Although a fuel surcharge mechanism was not included in the current purchase agreement or Bid No. IBT-3950, one-year purchase agreements with the option of a renewal will self adjust through the rebidding process. This aids the City and vendors in reaching an agreement that appropriately reflects vendor costs and City expenditures.
The following suppliers submitted bids in response to Bid No. ITB-3950:
Carmeuse, Inc.(Beachville, Ontario) $163.60/ton + $18.00/ton during seasonal load restrictions
Carmeuse, Inc.(River Rouge, MI) $128.06/ton + $18.00/ton during seasonal load restrictions
Mississippi Lime $160.00/ton delivered
Huron Lime, Inc. $124.60/ton delivered
Western Lime Corp $124.00/ton + $28.00/ton during seasonal load restrictions
As indicated in the bid summary, some suppliers include an additional unit cost during the springtime seasonal load restrictions placed on roads. These suppliers deliver smaller quantities of quicklime to comply with the load restrictions and consequently make more deliveries than when they are not in place. The other supplie...
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