Title
Resolution to Approve Purchase of Quicklime for Water Treatment from Carmeuse Lime Inc. Bid No. ITB-4187 (estimated $583,000.00 annually)
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 the remainder of FY12 is $292,000.00. The annual estimate for this chemical is $583,000.00
The following bids were received:
Carmeuse Lime Inc $145.79/ton + $540/load during weight restrictions
Huron Lime $153.10/ton 24 ton maximum load
Mississippi Lime $204/ton + varying fuel surcharges (39% this month)
JCI Jones Chemicals no bid
It is recommended that the resolution be approved to satisfy the Water Treatment Service Unit's requirement of quicklime from Carmeuse Lime Inc as the lowest responsible bidder.
It is also recommended that the purchasing agreement be extended for up to three additional years at no increase in cost if the vendor is agreeable, and if the City deems it to be in its best interest.
Sufficient funds for this purchase are budgeted within the Public Services, Water Treatment Services FY12 Operations and Maintenance budget. Future contract years are subject to City Council's annual appropriation.
Staff
Prepared by: Molly Wade, Manager, Water Treatment Services
Reviewed by: Sue F. McCormick, Public Services Administrator
Approved by: Steven D. Powers, 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 the 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.'s bid is the lowest responsible bid received for the supply of quicklime per Bid No. ITB-4187; and
Whereas, Carmeuse Lime Inc. received Human Rights approval on May 19, 2011;
RESOLVED, That Council accepts the bid of Carmeuse Lime Inc. of $145.79/ton (plus an additional $540.00/load during frost laws) for the Water Treatment Services Unit in accordance with the terms of Bid No. ITB-4187;
RESOLVED, That the City Administrator be directed to enter into a purchasing agreement in accordance with this resolution at a projected annual cost of approximately $583,000.00 pending the annual budget appropriation;
RESOLVED, That Council authorize the City Administrator to renew the agreement for up to three one-year terms provided both parties agree to an extension; and
RESOLVED, That the City Administrator be authorized and directed to approve a purchase order with Carmeuse Lime Inc. for the purchase of quicklime.