SR-12-11-2012-3HCity of City Council Report
Santa Monica
City Council Meeting: December 11, 2012
Agenda Item: 3—H
To: Mayor and City Council
From: Martin Pastucha, Director of Public Works
Subject: Bid Award for Granular Activated Carbon Replacement Services
Recommended Action
Staff recommends that the City Council award Bid #4036 to Carbon Activated
Corporation, a California -based company, in an amount not to exceed $882,000 for
granular activated carbon (GAC) replacement services at the Charnock Well Field, with
two additional one -year renewal options at a 3% increase in price in each year and an
anticipated increase in GAC demand, requiring additional number of changeouts each
year (Attachment B), for a total amount not to exceed $3,341,000 over a three -year
period, with future year funding contingent on Council budget approval.
Executive Summary
The periodic replacement of GAC filtration media is required for the removal of
contaminants in the groundwater at the Charnock Well Field. In October 2012, the City
solicited bids for GAC replacement services. After reviewing the three bids received,
staff recommends Carbon Activated Corporation as the best bidder to provide GAC
replacement services at the Charnock Well Field in an amount not to exceed
$3,341,000 over a three -year period.
Background
Granular activated carbon (GAC) filtration media is required for the removal of methyl
tert -butyl ether (MTBE), tert -butyl alcohol (TBA) and other volatile organic chemicals
(VOCs) in contaminated groundwater at the Charnock Well Field. GAC filtration media
must be replaced periodically to optimize the removal of MTBE, TBA and other VOCs.
The contractor removing the spent media would also provide related services such as,
carbon sample testing, regeneration of spent filter media at an off -site facility for resale,
and replacement with virgin, coconut shell carbon as needed.
1
On September 11, 2012, Council rejected all bids received for granular activated carbon
replacement services and directed staff to reissue a request for new bids in order to
obtain the best bidder for this service. Additionally, Council approved an interim
purchase order in the amount of $400,000 with Carbon Activated Corporation to provide
granular activated carbon replacement services at the Charnock Well Field for a period
of six months until a new bid was awarded.
Discussion
Vendor Selection
In October 2012, the City published Notices Inviting Bids to provide GAC replacement
services as required by the water treatment plant in accordance with City specifications.
The bid was posted on the City's on -line bidding site, and notices were advertised in the
Santa Monica Daily Press in accordance with City Charter and Municipal Code
provisions. There were 538 vendors notified and 15 vendors downloaded the bid.
Three bids were received and publicly opened on October 17, 2012 per Attachment A.
Bids were evaluated based on price, references, experience and compliance with City
specifications. Carbon Activated Corporation was the lowest bidder, is the current
provider for GAC at the Charnock treatment unit, and they have a good standing
relationship with the City. Carbon Activated Corporation has performed similar services
for the cities of Riverside and San Bernardino and for the San Gabriel Water Company
among others. Based upon these criteria, Carbon Activated Corporation is
recommended as the best bidder to provide GAC replacement services in accordance
with City specifications.
E
Financial Impacts & Budget Actions
The purchase order amount to be awarded to Carbon Activated Corporation is
$882,000. Funds are available in the FY2012 -13 budget in division 05672. The
purchase order will be charged to account 05672.544014. Budget authority for
subsequent years will be requested in each budget cycle for Council approval. Future
funding is contingent upon Council approval.
Prepared by: Gil Borboa, Water Resources Manager
Approved: Forwarded to Council:
Martin Pastucha Rod Gould
Director of Public Works City Manager
Attachments: A — Bid Summary
B — GAC Yearly Demand Needs
3
ATTACH M ENT A
BID #: 4036 BID CLOSING DATE: 10/17/12
BID DESCRIPTION: PROVIDE GRANULAR ACTIVATED CARBON (GAC) REPLACEMENT SERVICE AS REQUIRED BY THE WATER TREATMENT PLANT
RENEWAL OPTIONS: YEAR 2 *3% INCREASE 3% INCREASE
YEAR 3 * 3% INCREASE 3% INCREASE
*FORWARD LOOKING PRICE INCREASE DUE TO VOLATILE INCREASES OF COCONUT PRICE AND IS AN ESTIMATE OF PRICE INCREASE.
CALGON CARBON
PITTSBURGH, PA
PROMINENT SYSTEMS
CITY OF INDUSTRY
CARBON ACTIVATED
COMPTON, CA
PRICING
COST PER CHANGE -OUT
$26,215.00
$20,756.88
$18,525.85
TAXABLE AMOUNT OF THE CHANGE -OUT
$22,422.00
$17,400.00
$12,276.00
NAME & MODEL OF PROPOSED MEDIA
CALGON CARBON TYPE
OLC 12x40
PSC 1240 12X40 US
ACTIVATED CARBON
COC -L60 12X40 COCONUT SHELL
GAC
RENEWAL OPTIONS: YEAR 2 *3% INCREASE 3% INCREASE
YEAR 3 * 3% INCREASE 3% INCREASE
*FORWARD LOOKING PRICE INCREASE DUE TO VOLATILE INCREASES OF COCONUT PRICE AND IS AN ESTIMATE OF PRICE INCREASE.
Attachment B - GAC Yearly Demand Needs
Year ':
# of
Changoouts
Cost per
CF angeout
Totai Cost
Contingency
Total
13 -14
45
-
$ 18,525.85
$
833,663.25
$ 48,336.75
$
882,000.00
14-15
- - - --
60
$ 19,081.63
-
$
- -- --
1,144,897.53
$ 66,382.47
$
- -- - - - - --
1,211,280.00
15-16
60
$ 19,654.07
$
1,179,244.46
$ 68,475.54
$
1,247,720.00
Grand Total:
$
3,341,000.00