Title
Resolution to Award a General Services Agreement for Removal of Water Treatment Plant Residual Limestone to Prolime Corporation, Bid No. ITB-4594 (estimated $325,600.00/yr)
Memorandum
Your approval is requested to award a three year general services agreement to Prolime Corporation for the removal of Water Treatment Plant residual limestone
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 the Water Treatment Plant is termed a “dump”. A dump is approximately seven (7) cubic yards and weighs eight (8) tons. The plant produces approximately 2,200 dumps per year. At $148.00 per dump the estimated first year contract would be $325,600.00. After the first year, the contract provides for annual adjustments to the unit price based upon 80% pf the Consumers Price Index. The estimated three year cost is $976,800.00.
The City received the following bids:
Prolime Corporation $148.00/dump
It is recommended that Council accept the bid and award a general services agreement to Prolime Corporation, for the removal of residual limestone at the Water Treatment Plant.
It is also recommended that the contract may be extended for up to two additional one-year periods with the same price escalation terms for years two and three, if the vendor is agreeable and if in the best interest of the City.
Budget/Fiscal Impact: Funds are budgeted in the FY20 Operations and Maintenance Budget for the Water Supply System Fund. In FY21-24, the agreement is predicated on the appropriate funding from Council.
Staff
Prepared by: Sarah Page, Drinking Water Quality Manager, Water Treatment Services
Reviewed by: Craig Hupy, Public Services Administrator
Approved by: Howard S. Lazarus, City Administrator
Body
Whereas, The Water Treatment Plat annually produces approximately 15,400 cubic yards (2,200 dumps) of water softening residual limestone, which must be removed and disposed of;
Whereas, The limestone residuals are designated an agricultural liming material which can be recycled by spreading on farmland and may also be used as a land reclamation material because it is inert;
Whereas, Prolime Corporation’s bid is the lowest responsible bid for the removal of residual limestone per bid no. ITB-4594;
Whereas, Funding is available in the FY20 budget and future years are dependent upon funding from Council in the annual budget process;
Whereas, Prolime Corporation complies with the requirements of the Non-Discrimination and Living Wage ordinances;
RESOLVED, That the City Council accepts Prolime Corporation’s bid of $148.00/dump for the removal of residual limestone in accordance with the terms of Bid No. ITB-4594;
RESOLVED, That the City Council awards a three year contract to Prolime Corporation for the removal of Water Treatment Plant for the estimated $976,800.00;
RESOLVED, The City Administrator be authorized to renew the general services agreement for up to two one-year periods, with the price escalation terms provided in ITB-4594, and subject to availability of funding; and,
RESOLVED, The City Administrator be authorized to take the necessary administrative actions to implement this resolution.