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SR 08-28-2018 3D City Council Report City Council Meeting: August 28, 2018 Agenda Item: 3.D 1 of 5 To: Mayor and City Council From: Susan Cline, Director, Public Works, Water Resources Subject: Award Contract for Granular Activated Carbon Replacement Services for the Charnock Well Field and other City Water Treatment Sites Recommended Action Staff recommends that the City Council: 1. Award Bid #4341 to Carbon Activated Corporation, a California-based company, for granular activated carbon media replacement and reactivation services for the Charnock Well Field and other City water treatment sites; and 2. Authorize the City Manager to negotiate and execute an agreement with Carbon Activated Corporation, in an amount not to exceed $2,500,000 over a five-year period including a 2.6% price decrease in year 4, with future year funding contingent on Council budget approval. Summary Granular activated carbon media is used at the City’s Charnock Well Field to remove contaminants from groundwater to provide safe drinking water to over 18,000 Santa Monica residential, commercial and institutional customer accounts. Staff recommends the City award a five-year agreement in an amount not to exceed $2,500,000 to Carbon Activated Corporation to provide 20,000-pound loads of granular activated carbon media along with haul-away and reactivation services for spent media through October 31, 2023. Discussion The City uses granular activated carbon filter media to remove contaminants from groundwater including methyl tert-butyl ether (MTBE), tert-butyl alcohol (TBA) and other volatile organic compounds (VOCs) as part of a multi-stage water treatment process to produce safe drinking water in compliance with state water quality requirements for use by Santa Monica customers. The City’s Charnock Well Field and water treatment site, located at 11375 Westminster Avenue in Los Angeles, produces approximately 50% of 2 of 5 the City’s potable water (5,870 acre feet of 11,627 acre feet total demand in FY 2017- 18) and requires periodic deliveries of 20,000-pound loads of activated carbon to change out the media in 10 large adsorber vessels noted in Figure 1 below. As VOCs are removed from groundwater, the activated carbon becomes “spent” and must be replaced. After the activated carbon treatment, Charnock water is piped to the City’s nearby Arcadia Water Treatment Plant for final treatment including chemical application and reverse osmosis filtration, and then distributed for use by Santa Monica residential, commercial and institutional water customers (approximately 93,000 residents and 18,000+ service accounts). Rather than sending spent carbon to a hazardous waste disposal site or landfill, the City requires that vendors “reactivate” carbon via a high temperature furnace to burn off VOCs so that the carbon media can be reused. Carbon Activated Corporation has supplied the City with granular activated carbon replacement and reactivation services since the Charnock treatment site opened in 2011 to treat and remediate groundwater pollution from various oil companies / responsible parties that was detected in three of the City’s five Charnock water production wells. Significant progress has been made in the cleanup of the Charnock groundwater sub-basin. As indicated in the table below, the need for activated carbon filter media has dropped significantly since peaking in fiscal year 2013-14, indicating a decrease in groundwater VOC concentration as polluted water is removed for processing and replaced via natural aquifer recharge. The City’s groundwater management consultants anticipate that Charnock sub-basin cleanup might be 3 of 5 achieved within five years barring any unforeseen pollution plume spikes or additional contamination. Fiscal Year 11-12 12-13 13-14 14-15 15-16 16-17 17-18 # of 20,000-lb Deliveries 16 28 40 24 19 20 11 Vendor Selection The City requested prospective vendors quote pricing per 20,000-pound tanker truck delivery of granular activated carbon media along with haul-away and reactivation of spent carbon media. Bid results are summarized below, and pricing is based on one 20,000-lb delivery: Bid Data Bid Posting Date Bid Posted On Bid Advertised In (City Charter & Municipal Code) # of Vendors Downloaded # of Submittals Received Date Publicly Opened 3/15/2018 City's Online Bidding Site Santa Monica Daily Press 22 4 4/02/2018 Submittals Received Vendor Selection Recommendation Calgon Carbon Corporation (coconut shell carbon $38,553.00 Municipal Code SMMC 2.24.072 Calgon Carbon Corporation (Filtrasorb 400) $24,975.00 Evaluation Criteria Price, previous experience, ability to deliver, quality of product, and compliance with City specifications. Carbon Activated Corporation $22,996.75 Prominent Systems $20,800.00 Best Bidder Carbon Activated Corporation Best Bidder Justification 4 of 5 Financial Impacts and Budget Actions Staff seeks authority to award a contractual services agreement with Carbon Activated Corporation to provide granular activated carbon replacement and reactivation services for the Charnock Well Field and other water treatment sites as required by the Water Resources Division through October 2023. This agreement would be funded from the Water Fund allocation of proceeds from the 2003/2006 Charnock water pollution mitigation settlements with various oil companies. Agreement Request Request Amount FY 2018-19 Budget Public Works Department Account # Total Contract Amount $500,000 50500002-525084 $2,500,000 Future year funding is contingent on Council budget approval. Prepared By: Kevin Nagata, Senior Administrative Analyst Approved Forwarded to Council Carbon Activated Corporation is the best bidder and has provided similar satisfactory services to the City over the past seven years with all product deliveries in compliance with bacteriological testing requirements. Carbon Activated Corporation has a proven track record with several other Southern California water utilities; positive references were obtained by staff from the Los Angeles Department of Water and Power, Los Angeles Department of Public Works and the City of San Bernardino. Carbon Activated Corporation offered the same pricing for contract years 1 to 3, and a 2.6% price decrease in year 4 to be held in year 5 based on an expected increase in coconut shell supply (source material for activated carbon). Staff verified that Carbon Activated Corporation’s California state contractor’s license (General Engineering “A” classification) is current, active and in good standing. The lowest monetary bidder, Prominent Systems, did not meet the best bidder criteria. 5 of 5 Attachments: A. Oaks Initiative Disclosure Form - Carbon Activated Corporation REFERENCE: Agreement No. 10737 (CCS)