Title
Resolution to Approve a 3-Year General Services Agreement with Prolime Corporation for the Removal of Water Treatment Plant Residual Limestone, RFP No. 23-07 (Estimated $457,600.00 Annually, Estimated $1,372,800.00 Contract Total)
Memorandum
This resolution seeks approval of a general services agreement with Prolime Corporation for the removal of residual limestone from the Water Treatment Plant. Residual limestone is generated as part of the mineral removal process in production of drinking water.
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 $208.00 per dump the estimated first year contract would be $457,600.00. After the first year, the contract provides for annual adjustments to the unit price based upon 80% of the Consumers Price Index. The estimated three-year cost is $1,372,800.00.
The City intends to approve a 3-year contract with options to extend for up to two (2) one (1) year periods subject to mutual agreement. The estimated total cost of this services agreement for FY24 is $457,600.
RFP No. 23-07 was prepared seeking the services of a firm to remove and dispose of the limestone residual produced at the Water Treatment Plant.
On March 1, 2023, the City received two proposals in response to RFP 23-07. The RFP required each firm to submit a statement of qualifications including past involvement with similar projects, work plan, fee schedule, and resumes of personnel that they proposed were qualified and available to work on Carbon Replacement Project. WTP staff reviewed the proposals and determined which firms were most qualified to perform the required services. The firms were evaluated and scored on the following criteria:
• Professional Qualifications (20%)
• Past Involvement with Similar Projects (25%)
• Proposed Work Plan (30%)
• Fee Proposal (25%)
The fee proposals were as follows:
Prolime Corporation $208.00 per dump
Rocky Ridge Development $341.00 per dump
After evaluation of the proposals, it was determined that Prolime Corporation provided the best proposal and best qualified project team at the lowest price.
WWTP staff is requesting your approval of a 3-year General Services Agreement with Prolime Corporation in the total amount of $1,372,800.00 (estimated $457,600.00 per year) subject to annual unit price adjustments for the removal, hauling, and disposal of the Water Treatment Plant limestone residual and with options to extend it for 2 one-year periods.
Prolime Corporation complies with the requirements of the City’s Non-Discrimination and Living Wage ordinances.
Budget/Fiscal Impact: Funding for this contract will be budgeted in the annual Operations and Maintenance Budget for the Water Supply System Fund, if so approved by Council.
Staff
Prepared by: Jeff Keown, Assistant Plant Manager, Water Treatment Plant
Reviewed by: Brian Steglitz, Public Services Area Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The Water Treatment Plant 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 submitted the lowest proposal and is the was determined to be the best firm for the removal of residual limestone per RFP 23-07;
Whereas, Funding is available in the FY24 budget and future years are dependent upon funding from Council in the annual budget process; and
Whereas, Prolime Corporation complies with the requirements of the Non-Discrimination and Living Wage ordinances.
RESOLVED, That the City Council accepts Prolime Corporation’s proposal of $208.00/dump for the removal of residual limestone in accordance with the terms of RFP 23-07;
RESOLVED, That the City Council approves a three-year General Services Agreement with Prolime Corporation in the total amount of $1,372,800.00 for the removal, hauling and disposal of Water Treatment Plant residual limestone (RFP 23-07);
RESOLVED, That City Council approves a contingency of $40,000.00 for each year to fund additional services under this agreement at the discretion of the City Administrator, who is authorized to execute change orders or amendments for this purpose;
RESOLVED, The City Administrator be authorized to approve extensions of the Agreement for up to two one-year periods and to approve annual unit price adjustments not to exceed 80% of CPI, and subject to availability of funding;
RESOLVED, That the Mayor and City Clerk are authorized to sign the agreement after approval as to substance by the City Administrator and approval as to form by the City Attorney;
RESOLVED, That the City be authorized to procure the same services from another vendor if Prolime Corporation is unable or unwilling to provide the service or the required insurance; and
RESOLVED, The City Administrator be authorized to take the necessary administrative actions to implement this resolution.