Title
Resolution to Approve Purchase of Granular Activated Carbon (GAC) for Water Treatment from Norit Americas Inc, Bid No ITB-3976 ($51.00/cubic foot, estimated $183,600.00/yr)
Memorandum
Your approval is requested to authorize the purchase of approximately 3,600 cubic feet of Granular Activated Carbon (GAC) at $51.00/cubic foot for the replacement of GAC in 5 water filters at the Water Treatment Services Unit in each of FY09 and FY10. GAC is a filter media used to remove nutrients from the water. The estimated cost of the GAC replacement for FY09 is $183,600.00.
In response to the City's bid no ITB 3976, only the following two bids were received:
Norit Americas Inc - $51.00/cubic foot
Calgon Carbon Corp - $51.34/cubic foot
Both submitted bids are responsive bids. It is recommended that the resolution be approved to satisfy the Water Treatment Service Units' requirements of granular activated carbon for FY09 and FY10 from Norit Americas Inc as the lowest responsible bidder.
It is also recommended that the purchasing agreement be extended for up to five additional one-year extensions. The contract provides for annual adjustments to the unit price equal to The Bureau of Labor Statistics Producers Price Index of Industrial Commodities.
In the event Norit Americas Inc is unable to furnish the carbon, it is requested that the City Administrator be authorized to accept the next lowest responsible bidder for the granular activated carbon purchases.
Funds are available for this purchase in the approved FY09 Operations and Maintenance Budget for the Water Supply System. FY 2010 and future extension will be funded in the Maintenance and Operations Budget for the Water Supply System, if so approved by Council.
Staff
Prepared by: Larry Sanford, Asst Manager, Water Treatment Services
Reviewed by: Sue F. McCormick, Public Services Administrator
Approved by: Roger W. Fraser, City Administrator
Body
Whereas, The Water Treatment Service Unit uses Granular Activated Carbon (GAC) in its water filtration process;
Whereas, Contracts for supplying estimated requirements are the most stable and cost-effective way of meeting water treatment needs;
Whereas, Of the bids received to supply GAC per Bid No. ITB-3976, Norit Americas Inc submitted the lowest bid; and
Whereas, Norit Americas Inc received Human Rights approval on March 16, 2009 ;
RESOLVED, That Council accept the Norit Americas Inc bid of $51.00/cubic foot for granular activated carbon in accordance with Bid No. ITB-3976;
RESOLVED, That the City Administrator be directed to enter into a purchasing agreement in accordance with this resolution at a projected cost of approximately $367,200.00 for a 19 month term ending on June 30, 2010;
RESOLVED, That the City Administrator be authorized to renew the purchase order for up to five one-year periods provided both parties agree to an extension subject to the annual appropriations of funds for those FYs. The contract provides for annual price adjustments equal to the Producers Price Index for Industrial Commodities;
RESOLVED, That the City Administrator be directed to accept the next lowest responsible bidder if Norit Americas Inc is unable to furnish adequate supplies;
RESOLVED, That the purchase of granular activated carbon in the amount of $183,600.00 be funded from the approved FY09 Operation and Maintenance Budget of the Water Supply System and $183,600.00 be funded by the FY10 Operations and Maintenance Budget of the Water Supply System, if so approved by Council; and
RESOLVED, That the City Administrator be authorized to take all necessary actions to implement this resolution.