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SR-10-13-2015-3K - 205-003/502-009 City Council Report City Council Regular Meeting: October 13, 2015 Agenda Item: 3.K 1 of 3 To: Mayor and City Council From: Martin Pastucha, Director, Public Works, Water Resources Subject: Granular Activated Carbon Replacement Services at the Charnock Well Field Recommended Action Staff recommends that the City Council: 1. Award Bid #4213 to Carbon Activated Corporation, a California-based company, for Granular Activated Carbon replacement services at the Charnock Well Field ; 2. Authorize the City Manager to negotiate and execute a contractual service agreement with Carbon Activated Corporation, in an amount not to exceed $1,100,000 for one year, with two additional one -year renewal options in the amount of $1,100,000, on the same terms and conditions for a total amount not to exceed $3,300,000 over a three-year period, with future year funding contingent on Council budget approval; 3. Authorize the Director of Public Works to issue any necessary changes to complete additional work within contract authority. Executive Summary The ground water wells in the Charnock Well Field represent 80% of the City’s groundwater resource and the major source of the City’s domestic water supply. Contamination by Methyl tert-Butyl Ether (MTBE) shuttered the wells for over fourteen years until Charnock Treatment Facility was commissioned in 2010 which provides for the treatment by filtration through Granular Activated Carbon (GAC) to remove the contaminant. Regular replacement of the GAC is required to meet water quality requirements of the State. Staff recommends Carbon Activated Corporation as the best bidder for these services in an amount not to exceed $1,100,000 for one year, for a total amount not to exceed $3,300,000 over three years. Discussion MTBE and other Volatile Organic Chemicals (VOCs) are removed from contaminated groundwater at the City’s Charnock Well Field by filtration through ten GAC vessels each containing 20,000 pounds of virgin, coconut -shell GAC. This media must be removed and replaced periodically to optimize the removal of the MTBE and other 2 of 3 VOCs. The contractor removing the spent media will 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. Vendor Selection In August 2015, the City published Notice Inviting Bids to provide Granular Activated Carbon Replacement Services as required by the Water Resources Division in accordance with the City scope of work. 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. A total of 990 vendors were notified and 27 vendors downloaded the bid. Six bids were received and publicly opened on August 25, 2015 per Attachment A. Bids were evaluated based on the criteria in SMMC 2.24.072, including price, ability to meet material quality specification, previous experience, capacity and skill, ability to deliver and provide future maintenance or service, and compliance with City scope of work. Based on these criteria, Carbon Activated Corporation, the lowest bidder, is recommended as the best bidder to provide Granular Activated Carbon Replacement Services at the Charnock Well Field in accordance with City scope of work. Carbon Activated Corporation offered the best price, demonstrated meeting the City’s specification for technical grade of GAC and prior experience. Financial Impacts and Budget Actions The contract to be awarded to Carbon Activated Corporation is for an amount not to exceed $3,300,000 over three years. Funds in the amount of $1,100,000 are available in the FY 2015-16 budget in the Public Works Department. The contract will be charged to account 25672.544014. Future year funding is contingent on Council budget approval. Prepared By: Myriam Cardenas, Water Production & Treatment Administrator Approved Forwarded to Council 3 of 3 Attachments: A. Bid Results #4215 Granular Activated Carbon BID RESULTS:# 4215 GAC BID CLOSE DATE: TITLE:Provide Granular Activated Carbon as Required by the Water Treatment Plant Aqua Carb 1240C  (AC1240C) Completed 3% Increase 3% Increase Completed Completed Submitted Completed Completed Arizona Disclosure Oaks Initiative Completed Completed Completed Completed Compton, CA Carbon Activard Corp. Year 2 (FY 16/17): Year 3 (FY 17/18): Same Price, Terms, &  Conditions Same Price, Terms, &  Conditions Renewal Years 17,294.99$                             14,958.11$                             None COC L‐60 4 ‐ 6 Days ARO NET 30 Taxable Amount of the Change Out: Cost Per Change Out: Submitted Completed Completed NET 30 Same Price, Terms, &  Conditions Calgon Carbon Corp. Moon Township, PA 18,129.00$                             13,600.00$                             Completed Completed Completed Completed 2,387.00$   Freight Calgon OLC 12x40 GAC 21 Days ARO NET 30 Same Price, Terms, &  Conditions Same Price, Terms, &  Conditions Completed Completed Total Cost of Change Out: 17,294.99$                            18,129.00$                            21,000.00$                             12x40 Virgin Coconut Shell DID NOT RESPOND NET 30 2% Increase 2% Increase Completed CompletedNon Collusion Completed Living Wage Pervailing Wage Completed 18,200.00$                             Prominent Systems, Inc.  PS‐CS1240 48‐72 Hours PSC Industrial  Outsourcing Riverside, CA 24,440.00$                             ‐$                                        None Completed Same Price, Terms, &  Conditions Prominent Systems, Inc City of Industry, CA 18,200.00$                             16,800.00$                             None Envirosupply & Service Irvine, CA 21,000.00$                             N/A Evoqua Water  Technologies Elizabeth, NJ Pricing Completed 24,440.00$                             12 x 40 Virgin Coconut  Carbon 2‐3 Business Days N/A 2% Increase 2% Increase Addendum #1 Name & Model of Media: Delivery Lead Time: Payment Terms: Additional Fees: 26,400.00$                             20,480.00$                             None 26,400.00$                             City Documents: Completed Submitted Completed Completed Completed Completed Submitted Completed Completed Completed Completed ATTACHMENT A 5‐7 Business Days NET 30 8/25/2015 Purchasing Section 1717 Fourth Street, Suite 250 Santa Monica, CA 90401 Telephone: (310)458‐8281 Fax: (310)393‐6142     Reference:    Agreement No. 10199   (CCS)