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TO: Mayor Richard C. Irvin
FROM: Bob Leible, Assistant Superintendent of Water Production
DATE: November 27, 2018
SUBJECT:
A Resolution Awarding Contracts to Supply Process Chemicals for the Water Production Division.
PURPOSE:
To obtain City Council approval for the execution of contracts with suppliers of various process chemicals for the Water Production Division.
BACKGROUND:
Each year the Water Production Division solicits bids for process chemicals to be used at the Water Treatment Plant. These chemicals are essential and necessary to the operation of the various water treatment processes such as softening, disinfection, fluoridation, and taste & odor control, as well as regulatory compliance with drinking water standards. Sealed bids for this purpose were opened on October 24, 2018.
DISCUSSION:
Most contracts are awarded to the lowest responsive, responsible bidder for a period of one year, which may be renewable for a second year when mutually agreed upon by the City of Aurora and the supplier. Certain chemicals are occasionally bid on a trial basis because the chemical's performance in the treatment process has not yet been determined. The chemicals bid for this solicitation are all offered for a two-year period.
Funds have been requested in the 2019 City Budget in Account No. 510-4058-511-65-36 in the amount of $1,729,547. The proposed budget amount is based upon the estimated usage for all process chemicals including those in this solicitation: sodium hypochlorite, anhydrous ammonia, cationic polymer, carbon dioxide, and ferric chloride. With the exception of carbon dioxide, the recommended suppliers (see attachment) are the lowest responsive, responsible bidders. The two apparent lowest bidders for carbon dioxide submitted bid language modifications that are unacceptable to the City and therefore the bids are considered non-responsive.
In addition, Mississippi Lime (ML) has offered a non-bid price for the supply of calcium oxide (lime) of $198.20/ton for 2019, which is a 4.74% increase over the current 2018 price of $189.23. Attached is the cost breakdown from ML that 1) indicates no increase in the price of the product itself, 2) the increase is due only to transportation related costs of hauling and fuel. ML has established a long history of supplying high quality lime that meets Water Production Division bid standards and ML is normally recommended to supply lime for this reason. As such, the Water Production Division recommends a one year extension with Mississippi Lime for the supply of calcium oxide (lime).
IMPACT STATEMENT:
None.
RECOMMENDATIONS:
That the attached resolution be submitted to the City Council for approval so that contracts may be executed for two-year periods as indicated therein, as well as a one-year extension to Mississippi Lime for 2019. It is further recommended that this matter be forwarded to the Finance Committee for review and approval.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution Awarding Contracts to Supply Process Chemicals for the Water Production Division.
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, bids were requested for process chemicals to be used in the treatment of the City's water supply for a two-year period (2019 - 2020) and;
WHEREAS, listed on the attachment, "WPD Recommended Chemical Bidders 2019- 2020", are the lowest responsive, responsible bidders for each process chemical, at the bid amount shown, for a two-year period; and
WHEREAS, Mississippi Lime is recommended to supply calcium oxide (lime) for 2019 on a one-year extension; and
WHEREAS, funding for the purchase of all process chemicals is provided annually in the City Budget in Account No. 510-4058-511-65-36;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that the Purchasing Director is hereby authorized to enter into an agreement with Mississippi Lime and the lowest responsive, responsible bidder for each process chemical, as recommended above, for the Water Production Division.