HomeMy WebLinkAboutAgenda Report - April 1, 1998 (47)0
CITY OF LODI COUNCIL COMMUNICATION
AGENDA TITLE: Approve Participation in City of Fresno's Contract for Replacement of Granular
Activated Carbon for DBCP Treatment Systems at City Wells No. 16, 22, and 23
MEETING DATE: April 1, 1998
PREPARED BY: Public Works Director
RECOMMENDED ACTION: That the City Council authorize the City Manager to execute the
necessary agreements to purchase/regenerate granular activated carbon
(GAC) from Northwestern Carbon under the applicable terms of the
City of Fresno's contract.
BACKGROUND INFORMATION: The City of Lodi currently has four wells with treatment systems
which use GAC to remove dibromochloropropane (DBCP). Three of
these treatment systems went off line in October, 1997 due to the
GAC reaching the end of its usefulness in removing DBCP to the
required 0.2 parts -per -billion level. The replacement or regeneration of the GAC must be completed
before the end of May, 1998 to have these three wells on line for the beginning of this summer's high
water demands.
The City of Fresno solicited bids for the purchase and regeneration of GAC used in well treatment
systems to remove DBCP. Fresno has numerous wells with GAC treatment systems and received prices
commensurate with its volume of GAC purchases. The results of the bidding process showed
Northwestern Carbon's bid (copy attached) to be the lowest on the items Lodi is requiring. Northwest
Carbon has furnished the City of Lodi with both new GAC and GAC regeneration in the past.
FUNDING: The money for this project will be coming from the Water Utility Funds' DBCP Operations
and Maintenance account which, in part, is reimbursed under the terms of the DBCP
settlement.
Project Estimate:
Budgeted:
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VickyVNcAthie
Finance Director
$150,000
1997/98 Operating Budget
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Richard C. Prima, Jr.
Public Works Director
Prepared by Frank Beeler, Assistant Water/Wastewater Superintendent
RCP/FB/dsg
Attachment
cc: City Attorney
Purchasing Officer
Water/Wastewater Superintendent
APPROVED:
Dixon Flynn -- City Manager
G:1WWWIGAC CC98.DOC 3/20/98
NORTHWESTERN
CARBON
2-25-98
Mr. Frank Beeler
THE CITY OF LODI
1331 So. Ham Lane
Lodi, CA 95242
Dear Mr. Beeler:
Thank you for the opportunity to update our "piggyback" offer for your upcoming carbon change -
out requirements.
As discussed, public agencies often "tack on" or "piggy back" on a neighboring community's
contract for identical products or services. NWC has competitively bid open contracts with the
City of Fresno for both virgin and recycling change -out service requirements. Several local cities
(Modesto, Clovis, Sanger, Ripon, Reedley) have "tacked on" and received the favorable
competitively bid pricing enjoyed by the City of Fresno.
This fax will confirm the NWC offer to extend this "piggy back" option (Fresno contract pricing)
to the City of Lodi for the upcoming carbon requirements. Attached you will find two purchase
orders from the Cityof Fresno that confirm pricing and refer to Requirements Contracts Awarded
to NWC by the Fresno City Council following the competitive bid process. Both contracts have
been extended and are 'open contracts" with NWC at this time. I've also attached the results
of the virgin carbon solicitation for your review. NWC was the sole responder to the recycling
solicitation with pricing as shown below. In summary:
- Pricing for spent carbon removal, transportation of spent carbon. and the reactivation
or disposal of spent carbon for a 20,000 Ib. vessel is shown on P042304 and totals
$3,790 or 18.95 ¢1[b. This service pricellb. may be applied to varying vessel quantities
and regardless of whether reactivated or virgin carbon is ultimately re -installed.
- Pricing for the return and reinstallation of recycled carbon (45/¢/lb.) is also shown on
PO 42304.
- Pricing for transport and installation by slurry transfer of virgin carbon (69.27¢/lb.)is
shown on PO39691.
Application of this favorable contract pricing to your project requirements under a "piggy back"
order will result in the following:
P.O. BOX 130 • Red Biuf(, CA 40080 • Bus (5301527-2664 • Fax (530) 527-0541 • (800) 735-2664
h;tp-1/,hww nwcarbon.c:orn
5E\T BY: �5-Jts ti 5�.��t \�RTHnE�TER.\ CA&bQ.\ .� z u
- Well #22, virgin change out of two 30,000 Ib. vessels $ 52,932
(60,000lbs. x 18.95¢/lb. + 60,000lbs. x 69.270/lb.)
- Well #23, recycle change out of two 30,000 Ib. vessels $ 38,370
(60.000lbs. x 18.95¢11b. + 60,0001bs. x .45011b.)
- "Third" well site, virgin change out of three 22,000 Ib. vessels $ 58,225
(66,000lbs. x 18.95¢/1b. + 66,000lbs. x 69.27¢/Ib.)
Virgin carbon will be premium quality Bituminous Coal Based NWC LB -830 which has been
certified to meet the strict ANSI/NSF Standard 61 Classification for drinking water carbon system
applications (information attached).
I had forgotten that I had given you special pricing for just the removal and disposal of the
66,000 lbs. of spent carbon at the "third" well site. This option is still available as quoted below:
NWC will remove the non -hazardous spent carbon used for the removal of DBCP from
the City's three 22,000 carbon vessels (66,000 lbs.) and transport it to the NWC thermal
regeneration facility in Red Bluff, CA where it will be reactivated and retained for future
sale to industry. A Certificate of VOC Destruction will be provided_ Total price = $26,400
(non-taxable).
NWC is no longer available for the removal and disposal of DBCP contaminated Lignite.
We are prepared to begin this project immediately and, of course, you can expect the highest
quality in products and service from all of us at NWC. Please call me if I can be of further
assistance.
Sincerely,
Terry Thomdyke
V.P. Municipal Programs