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HomeMy WebLinkAboutAgenda Report - February 20, 2008 E-12AGENDA ITEM &M ja CITY OF LODI COUNCIL COMMUNICATION M AGENDA TITLE: Adopt Resolution Authorizing City Mana erto Enter into Contracts to Purchase Replacement Granular Activated Carbon for DBCP Treatment at City Drinking Water Wells for 2008 ($247,800) MEETING DATE: February20,2008 PREPARED BY: Public Works Director RECOMMENDED ACTION: Adopt a resolution authorizing the City Manager to enter into contracts to purchase replacement granular activated carbon (GAC) for dibromochloropropane (DBCP)treatment at City drinking water wells for calendar year 2008. BACKGROUND INFORMATION: The City operates GAC treatment systems for the removal of DBCP at six of the City's 26 drinking water wells. The operation and maintenance of these systems is paid for under the terms of the DBCP settlementwith Shell, DOW, et al. The City's innovative operational strategies have extended the life of the GAC to approximately six years (although budgeted for, there were no GAC replacements required in 2006107). The GAC at Wells No. 411 and 23 have been spent and need replacement. These wells are vital to Lodi's drinking water system. Forecasting exactly when GAC will have to be replaced is somewhat unpredictable, so there is a possibilitythat a third well will need GAC replacement before the summer peak usages. Per Lodi Municipal Code §3.20.045, State and Local Agency Contracts, the bidding process may be waived when it is advantageous for the City, with appropriate approval by City Manager and City Council, to use contracts that have been awarded by other California public agencies, provided that their award was in compliance with their formal ly-adopted bidding or negotiation procedures. Calgon Carbon Corporation has extended an offer for the City of Lodi to participate in a contract with the City of Clovis. Calgon was the low bidder on virgin GAC in Clovis'formal bidding in September2007. Calgon's F-300 GAC is U.S. mined and manufactured and is of the highest quality. The City of Lodi's experience with Calgon has found their work to be to the highest standards and their GAC lasted longerthan other manufacturers' imported GAC. With increased energy costs, the cost of GAC has increased significantly. The Calgon price of $1.18 per pound includes removal and certified destruction or reactivation of the spent GAC, delivery, and installation of the virgin GAC and start-up assistance. City Well No. 4R's GAC system requires 90,000 pounds and Well No. 23 requires 60,000 pounds, making the cost of replacement $106,200 and $70,800 respectively. The possiblethird system would be an additional 60,000 pounds. FISCAL IMPACT: The purchase of this superior material results in overall cost savings by extending the life of the GAC system by 16% and reducing the other related costs associated with GAC replacements. The cost savings from the contractwith Clovis compared to current higher GAC prices saves an additional 5% to 10%. FUNDING AVAILABLE: Thepva 00 is currently budgeted in the Water Utility Fund (180454). inager *UNk Richard C. Prima,\®r PublicWorks Director Prepared by Frank Beeler, Water/Wastewater Superintendent cc F. Wally Sandelin, City EngineeriDeputy Public Works Director Charles E. Swirnley, Jr.. Water Services Manager APPROVED: / Blair ,City Manager C:1Documents and Settingslpfarris\Local Settings\Temporary Internet Files\OLKC8IGAC Purchase.doc 2!t 212008 RESOLUTION NO. 2008-21 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY MANAGER TO ENTER INTO CONTRACTS TO PURCHASE REPLACEMENT GRANULAR ACTIVATED CARBON FOR DBCP TREATMENTAT CITY DRINKING WATER WELLS FOR 2008 WHEREAS, the City operates and maintains granular activated carbon (GAC) treatment systems for dibromochloropropane (DBCP) removal at 6 of the City's 26 drinking water wells paid for under the terms of the DBCP settlement with Shell, DOW, et al; and WHEREAS, the GAC at Wells No. 4R and 23 have been spent and need replacement at a cost of $106,200 and $70,800 respectively, and there is a possibilitythat a third well will need GAC replacement before the summer peak usages; and WHEREAS, per Lodi Municipal Code §3.20.045, State and Local Agency Contracts, the bidding process may be waived when it is advantageousfor the City, with appropriate approval by City Manager and City Council, to use contracts that have been awarded by other California public agencies, provided that their award was in compliance with their formally -adopted bidding or negotiation procedures; and WHEREAS, Calgon Carbon Corporation has extended an offer for the City of Lodi to participate in a contract with the city of Clovis, as Calgon was the low bidder on virgin GAC in Clovis' formal bidding; and WHEREAS, the City of Lodi's past experience with Calgon has found its work to be to the highest standards and its U.S.-mined GAC longer -lasting than other manufacturers' imported GAC. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the City Manager to enter into contracts with Calgon Carbon Corporation to purchase replacement GAC for DBCP treatment at City drinking water wells for calendar year 2008 as follows: Well No. 4R at $106,200; Well No. 23 at $70,800; and a possibility of a third well (No. 22) at a cost of $70,800. Dated: February20, 2008 hereby certify that Resolution No. 2008-21 was passed and adopted by the City Council cf the City of Lodi in a regular meeting held February20, 2008, by the following vote: AYES: COUNCIL MEMBERS— Hansen, Hitchcock, Johnson, Katzakian, and Mayor Mounce NOES: COUNCIL MEMBERS —None ABSENT: COUNCIL MEMBERS— None ABSTAIN: COUNCIL MEMBERS—Non JOHL CityClerk 2008-21