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Agenda Item: 7(b) |
Prepared By: Jeffrey E. Poteet |
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Business: Consent Agenda |
Department: Water and Sewer |
Authorize the City Manager to Execute a Contract 2021-013 with ProLime Corporation for NWTP (North Water Treatment Plant) Lime Sludge Hauling, Removal, and Disposal in an Estimated Annual Amount of $234,877.50 ($643.50 Per Load; 365 Loads Per Year; 27.5 Cubic Yards Per Load)
BACKGROUND:
The City’s North Water Treatment Plant (NWTP) utilizes the lime softening process to treat and soften surface water prior to filtration, disinfection, and distribution. To reduce total organic carbon (TOC), color, hardness, and alkalinity, aluminum sulfate (alum) and a lime slurry (calcium hydroxide) are added to the raw water at the NWTP reactor/clarifier. The lime raises the water’s pH level, which causes those constituents to form nearly insoluble precipitates. These precipitates settle with the lime to the bottom of the lime reactor/clarifier. This process produces a lime sludge cake waste of approximately 27.5 cubic yards per day, which must be disposed of offsite at an appropriate facility. The waste lime sludge cake must be loaded onto trailers and hauled to an offsite disposal area.
This bid (ITB #2021-013) was advertised on 2/22/21, 279 suppliers were notified, 14 downloaded the bid package and on 3/17/21 City received one bid for this service. Prolime was the only firm that submitted a bid. The new bid price increased 29% from $498.66/load to $643.50/load, an estimated annual cost increase of $52,866.60 per year.
Prolime has been the City’s lime sludge hauling, removal, and disposal service provider since 2005. This is an annual contract for the initial two (2)-year term with an option to renew for an additional two (2) two (2)-year terms. After the initial two (2)-year contract period, price increases are allowed for each two (2)-year extension period upon mutual agreement. However, price increases are limited to the Consumer Price Index for All Urban Consumers (CPI-U) increases for the South Region Size B/C as reported for October to September of each year.
FUNDING SOURCE / FISCAL IMPACT: Funding for lime sludge hauling, removal and disposal is budgeted annually in the W&S Department operating budget. The FY21 operating budget has a remaining budget of $105,187.60 for lime sludge hauling, removal, and disposal. To accommodate the sludge hauling cost increase, staff has estimated an additional $20,000 will be needed. This cost increase will be absorbed within the existing approved FY21 W&S operating fund.
RECOMMENDATION: City staff has reviewed the submitted bid and recommends awarding the Contract 2021-013 for NWTP Lime Sludge Hauling, Removal, and Disposal to ProLime Corporation in the estimated annual amount of $234,877.50.
POTENTIAL MOTION: “I move to authorize the City Manager to execute Contract 2021-013 for NWTP Lime Sludge Hauling, Removal, and Disposal to ProLime Corporation in the estimated annual amount of $234,877.50.”