Title
Resolution to Award a Contract for Removal and Marketing of Water Treatment Plant Residual Limestone Bid No. 3894 ($279,400.00)
Memorandum
Your approval is requested to award a five year contract to Prolime Corporation for the removal and marketing of its Water Treatment Services limestone residual.
Limestone residual is generated at the Water Treatment Plant as a result of the water softening process. The limestone residual has been designated an agricultural liming material by the Michigan Department of Agriculture and can be recycled by applying it to farmland. Additionally, it has been approved as a soil ad-mixture to fill gravel pits.
A complete pressing and discharge of residual from one of the filter presses at the Water Plant is termed a "dump". A dump is approximately seven (7) cubic yards and weighs eight (8) tons. The plant produces approximately 2000 dumps per year. At $139.70 per dump the estimated first year contract would be $279,400. After the first year the contract provides for annual adjustments to the unit price based upon 80% of the Consumers Price Index. The estimated five year cost is $1,397,000. Continuation in the second through fifth years is subject to the annual appropriation of funds. The contract also provides for five (5), one year renewal options.
Following bids were received for lime residuals hauling in response to bid no 3894:
Prolime Corporation $139.70/dump
Synagro $172.50/dump
Homrich Inc $196.00/dump
Staff evaluated the bids and recommends that Prolime Corporation’s bid in the amount of $139.70/dump be accepted for removal of residual limestone at the Water Treatment Plant. The resolution also authorizes renewal of the agreement for five (5) additional one year periods, upon approval by the City Administrator, for a total of approximately $1,397,000 over five years, with the same terms and conditions. Continuation in years two through five of the initial term and the renewal periods a...
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