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CONSIDERATION AND AWARDING OF BID 1819-70 FOR THE PURCHASE OF QUICK LIME FOR THE WATER TREATMENT PLANT.
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BACKGROUND: “Quick Lime”, also known as calcium oxide, is a chemical used in the water treatment process to raise the pH of raw water. Quick lime bids are solicited on an annual basis. On May 16, 2019, bids were opened for Bid 1819-70 for Quick Lime. Funds in the amount of $602,299 have been budgeted in the fiscal year ending June 30, 2020 (FYE 2020) Water Fund, Water Treatment Plant, Operating Chemicals (031-5534-461.31-08) for purchase of all treatment chemicals, including Quick Lime. The cost of Quick Lime products delivered to the City of Norman Water Treatment increased in price from 2018 to 2019 a total of 21.48 percent. Five percent of the total increase was for transportation cost associated with moving the product from the lime plant to our water plant. The other 16 percent of the increase was for the major capital expenditure from the vendor in their new lime plant and equipment U.S. Lime Company invested in Marble City, OK to produce a consistent, high quality Quick Lime product. Staff asks Council to consider awarding to the low bid for acquisition of this chemical.
DISCUSSION: Specifications were sent to seven (7) vendors and two (2) bids were received. The lowest and best bid meeting all specifications was submitted by US Lime Company - St. Clair (Marble City, Oklahoma) in the amount of $204.09 per ton. This compares to a cost of $168.95 per ton last year, an increase of 20.8%. Bids have been examined by staff and found to be in order and proper as to form. Purchases will be made throughout FYE 2020.
RECOMMENDATION: Staff recommends acceptance of the low bid submitted by US Lime Company - St. Clair.