TO: Mayor Thomas J. Weisner
FROM: Bob Leible, Assistant Superintendent of Water Production
DATE: October 29, 2013
SUBJECT: title
Resolution Awarding Contracts to Supply Process Chemicals for the Water Production Division.
body
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, fluoridation, disinfection, and taste & odor control, as well as regulatory compliance with drinking water standards. Sealed bids for this purpose were opened on October 23, 2013.
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 only a one-year period will be re-bid next year as required.
It should be noted that Mississippi Lime (ML) is not the lowest bidder when solely considering unit cost, but when considering total annual estimated cost to the City, the situation is changed. ML is the only bidder who meets the standard chemical quality specifications regarding Available Calcium Oxide (Av CaO), the actual percent of reactive material in the bulk product. As such, more raw bulk product from the other suppliers must be purchased in order to receive the same quantity of reactive material. Also, because more bulk product must be utilized in the treatment process from other bidders, an increase in lime sludge production, and associated lime sludge disposal costs, will occur. The chart below shows the estimated total annual costs when considering all of these factors:
Estimated Annual Total Costs Per Supplier
Mississippi Lime Graymont/Western Chemrite
$814,625 $821,375 $813,136
The estimated annual total cost difference between ML and Chemrite is only $1,489 or 0.2% of the estimated total annual costs. Because the cost difference is minimal and ML is the only supplier that meets the Av CaO specification of 93% minimum (and is thus the only responsive, responsible bidder), the Water Production Division is recommending ML as the lowest responsive, responsible bidder to supply Lime in 2014.
Funds have been requested in the 2014 City Budget in Account No. 510-4058-511-65-36.
IMPACT STATEMENT:
None.
RECOMMENDATIONS:
That the attached resolution be submitted to the City Council for their approval so that contracts may be executed for one-year and two-year periods as indicated therein.
cc: Alderman O'Connor, Chairman
Alderman Mervine
Alderman Peters, Alternate