Billing Utilities Committee recommends bids for backup quicklime supplier, caps contract at $150,000

Samuel Pierce, chair of the Billing Utilities Committee, said Jan. 27 the committee had before it a recommendation to authorize the director of public service and safety to advertise for bids and enter into a contract for a backup supplier of quicklime at a total cost not to exceed $150,000.

A city staff member explained that quicklime is the lime chemical used to soften water at the treatment plants. "It's quicklime. So it's a lime, the lime treatment that we use, the lime chemical that we use, to soften the water at the plants," the staff member said, adding the utility uses two sources of lime: a commercial market and a long-standing contract with the City of Dayton to buy recycled lime.

The staff member said the contract with Dayton, in place for more than 10 years, supplies recycled lime that matches the plant's chemical needs and also includes a service to clean the utility's two lime lagoons, which staff said has produced annual savings. However, Dayton's kiln is limited in output and has required both routine and unanticipated maintenance. "Had that happen a couple of times last year where we had to buy on the commercial market because they weren't able to produce the lime for us and ship it out," the staff member said.

The staff member said the plant superintendent requested the ability to go to bid now because the utility approached the $75,000 threshold for formal bidding last year. The staff member said the request is precautionary and not emergency legislation: "Just in case we might do that this year, and to be safe and to be legal, that's why he's requesting the ability to go out to bid... We are not asking for emergency legislation, however."

Councilwoman Snee asked whether the existing contract gives any preference on who receives Dayton's recycled lime or whether allocation is prorated. The staff member said allocation is prorated based on anticipated volumes built into the contract and described the distribution as "fairly equitable." The staff member also said any commercial bidders would understand the contract is intended as backup and may not be called on to supply product.

After questions from the committee, a member moved to "move forward as recommended." The committee's recommendation was to forward the procurement authorization to council so the director could advertise for bids and, if appropriate, enter a contract for a backup supplier of quicklime with a not-to-exceed total of $150,000. The committee recorded no emergency request and no formal vote tally during the discussion.

The item will return to the full council for consideration; the committee's action was a recommendation to staff and council rather than a final contract award.