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TO: Mayor Richard C. Irvin
FROM: David E. Schumacher, P.E., Superintendent of Water Production
DATE: August 24, 2020
SUBJECT:
Resolution to award a contract for the Lime Sludge Removal and Disposal for the Water Production Division
PURPOSE:
To obtain City Council approval to award a contract to Stewart Spreading, Inc., Sheridan, IL, for the Lime Sludge Removal and Disposal work for the Water Production (WPD) in an annual amount of $1,668,755.00.
BACKGROUND:
The Aurora Water Treatment Plant (WTP) utilizes a lime softening process to remove the vast majority of particles, contaminants, and radium from the raw water pumped from the Fox River and deep and shallow wells. While being very consistent and highly effective, this treatment process creates a large quantity of a waste product; lime sludge. The lime sludge must be regularly removed from the WTP due to limitations of available temporary storage space on site. Currently, the material is removed by a private contractor and ultimately disposed via land application on agricultural fields as a beneficial reuse soil amendment or at a landfill.
DISCUSSION:
The existing contract for lime sludge removal and disposal will expire on October 22, 2020. As such, the contract work to remove and dispose of the lime residual was publicly advertised in the Aurora Beacon News on July 5, 2020. The advertisement was also posted on DemandStar (a free national web publishing site), which contacted 47 potential bidders, as well as the City of Aurora's website. In addition, the Advertisement for Bids was directly emailed to 14 contractors in five states who work in the general hauling/disposal and land application areas. A Pre-Bid Meeting was held at the Aurora Water Treatment Plant on July 15, 2020 where six potential bidders were represented.
Bids were opened on July 29, 2020. A total of one bid was received (bid tab attached). The lowest responsive bid was submitted by Stewart Spreading, Inc., Sheridan, IL (Stewart) for $1,668,755.00. The cost estimate generated for the work required is $1,687,000.00, which represents a 1.1% difference between the low bid and the estimate. Also, depending on the assumed quantities used annually, the bid received is approximately 3% to 5% higher than the current contract's estimated annual value. As such, the WPD believes that the bid represents a fair estimate of the actual cost of the work.
Stewart has been performing the lime sludge removal and disposal work for the city for over 13 years in a satisfactory manner. Thus, there is very little concern regarding Stewart's ability to successfully complete the work.
Funding for this work is provided in the 2020 City Budget in account #510-4058-511-36-58 in an amount of $1,756,000.00, and adequate funding has been requested in the 2021 City Budget. The proposed contract is for a duration of two years.
IMPACT STATEMENT:
Not approving this contract and the associated work would lead to severe operational difficulties for the Aurora Water Treatment Plant.
RECOMMENDATIONS:
That the Mayor and City Council award the Lime Sludge Removal and Disposal contract work to Stewart Spreading, Inc., in an annual amount of $1,668,755.00. It is further recommended that this matter be forwarded to the Infrastructure and Technology Committee for review and recommendation.
cc: Infrastructure and Technology Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution to Award a Contract for the Lime Sludge Removal and Disposal 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, the Water Production Division generates a lime residual product from the water treatment process which must be removed and disposed either via landfilling or via land application by an external private contractor; and
WHEREAS, bids were received and publicly opened and read on July 29, 2020 for the Lime Sludge Removal and Disposal contract work; and
WHEREAS, contract would be for two years from the start of the contract with options to extend per contract section SP-11; and
WHEREAS, Stewart Spreading, Inc., Sheridan, IL is the lowest responsive, responsible, bidder in the amount of $1,668,755.00; and
WHEREAS, funds are available in the City Budget Account No. 510-4058-511-36-58 in an amount of $1,756,000.00 to complete this contract work;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: hereby authorizes the Purchasing Director to execute a contract with Stewart Spreading, Inc., for the Lime Sludge Removal and Disposal contract work, as bid per the contract documents, in an annual amount of $1,668,755.00, for the Water Production Division.