1 TO: City Council
FROM: Ryan Smoot, City Manager
PREPARED BY: Carla Dillon, P.E., Public Works Director
MEETING DATE: April 4, 2023
SUBJECT: Agreement with Calgon Carbon Corporation for the Cypress Water Production Facility
RECOMMENDATION
Authorize the City Manager and City Clerk to execute an agreement with Calgon Carbon Corporation for granular activated carbon, in a form approved by the City Attorney, for an amount up to $520,000.
BACKGROUND
The City’s project to upgrade the Cypress Water Production Facility (CWPF) is nearing completion. The City had long been planning for the addition of Granular Activated Carbon (GAC) to improve the aesthetic qualities of Lomita’s water and began the design process in late 2017. The GAC will not only remove constituents that affect aesthetic qualities such as taste and odor, but also removes benzene and is considered the best available technology. Following the detection of benzene, the design of the GAC system required the addition of two more GAC vessels to ensure complete removal of benzene.
The CWPF Upgrade Project will install GAC at start-up, and it is anticipated that removal and replacement of the GAC will be needed approximately six months after operations commence. Actual replacement time will depend on many factors so it may be needed earlier or later. As part of the permitting process, the Division of Drinking Water (DDW) has been requested that a contract be in place at start-up.
The CWPF project upgrade has installed four vessels that contain 20,000 lbs. of GAC per vessel. Since the vessels are operated with two in series, DDW will require the two vessels in series to be replace at the same time resulting in 40,000 lbs. being removed and replaced. Although the supplier offers a lower cost option of taking the material to their facility for reactivation, the City will not be permitted for this option by DDW. In the Item No. 7g
CITY OF LOMITA
CITY COUNCIL REPORT
2 future, the City may request a permit modification to allow this, which will require testing to ensure that the City’s regenerated material is as effective as virgin material.
In order to apply for a permit from DDW, it was necessary for the City to commit to a specific brand and product. The selected product was Calgon Virgin Filtrasorb 400 for its effectiveness with benzene. Since Calgon Carbon Corporation is the only supplier of this product, they are the sole supplier and multiple bids could not be obtained.
FISCAL IMPACT
The initial contract will allow for approximately four change-outs of 40,000 lbs. of GAC and will be paid from account 510-630-5443. The unit price will be adjusted going forward based upon the following indices:
1) U.S. Department of Labor Producer Price Index (PPI) for All Other Basic Organic Chemicals Manufacturing: Miscellaneous end-use chemicals and chemical products, - 40% weight;
2) U.S. Department of Labor CPI for Urban Wage Earners for the U.S. City Average - 40% weight;
3) Transportation: U.S. Department of Labor PPI by Commodity for Transportation Services: Truck Transportation of Freight - 20% weight
No expenses are anticipated in FY22-23, and a budget adjustment may be requested in the future if funds in the account are insufficient.
OPTIONS
1. Approve staff’s recommendation.
2. Provide alternative direction.
ATTACHMENTS
1. Price Quote
Reviewed by: Approved by:
_______________________ ______________________
Gary Y. Sugano Ryan Smoot
Assistant City Manager City Manager
Prepared by:
_________________________
Carla Dillon, P.E.
Public Works Director / City Engineer
CALGON CARBON CORPORATION
ACTIVATED CARBON BUDGET SCOPE OF SUPPLY FOR CITY OF LOMITA, CA Contact: Carla Dillon Email: [email protected]
Project: Lomita GAC Exchange Date: 3/9/2023
Location: Lomita, CA
GAC Amount per exchange: 40,000 lbs
GAC Turnkey Exchange Pricing:
Option 1: Spent material to be taken back for reactivation: $78,000 Option 2: Spent material to landfilled: $109,600
ITEMS INCLUDED:
• Product: Virgin Filtrasorb 400
• Quantity: 40,000 lbs
• Scope:
o Delivery of carbon to the site in potable-dedicated trailers. o Installation of carbon into Adsorption Vessel performed by Calgon Carbon o All related labor and equipment (trucks, hoppers, hoses, etc), except utilities detailed below ITEMS NOT INCLUDED IN THIS OFFER:
• Owner to provide clean water source for movement of GAC to and from filter via eduction • Drain access for excess water from carbon transfer (water will be gray with carbon fines) • Disinfection (if necessary) not included
• Any applicable taxes not included
SPECIAL TERMS AND CONDITIONS:
1. Unless otherwise noted, or until other Terms and Conditions are provided, this Offer is made only under Calgon Carbon Corporation’s General Terms and Conditions for Purchase.
2. Carbon shall be free flowing from vessels. If carbon is solidified, 3rd party field service may be necessary for removal and disposal, and charged on a “cost plus” basis.
3. Pricing provided is exclusive of any Sales Tax, SALES TAX NOT INCLUDED.
4. Scope of Supply/Pricing does not include any Payment or Performance Bonds. Costs for any such Bond (if necessary or requested by the Purchaser) will be added to the quoted pricing.
Attachment 1
5. Upon acknowledgement of any Purchase Order, the Buyer will be requested to complete a Credit Application and provide Tax Exemption Documentation.
6. The quoted price is valid for 60 days from the date of this Scope of Supply document.
For Information or to Place an Order, Contact:
Tim Brekke
Calgon Carbon Corporation
Regional Sales Manager
[email protected]
310-740-7782