Title
Resolution to Approve an Increase to the Purchase Order of Granular Activated Carbon (GAC) for Water Treatment Services from Calgon Carbon Corp, Bid No. ITB-4376 and Appropriate $850,000.00 from the Water Supply System (8 Votes Required)
Memorandum
The State of Michigan has recently launched its program to test all community drinking water systems in the State for per- and polyfluoroalkyl substances (PFAS) by the end of 2018. The results from this testing program are beginning to be released, and there has been significant media attention. Ann Arbor has been mentioned in several articles as a city with PFAS measureable in both its source and drinking water, resulting in numerous inquiries from citizens regarding the measures the City is taking to address PFAS in the drinking water.
The City of Ann Arbor has been testing its drinking water for PFAS since 2014 and reporting the results in its Annual Water Quality Report. The maximum level of PFOA and PFOS detected in the City’s drinking water in 2017 was 15 parts per trillion (ppt), which is well below the EPA’s health advisory level of 70 ppt. However, based on a recently released study conducted by the Agency for Toxic Substances and Disease Registry (ATSDR), it is likely that future health advisories and/or regulation may be lower than the existing level.
The City of Ann Arbor’s testing results from the State’s program were released on August 29. These results indicate that the PFOS/PFOA levels found in the City’s drinking water was 4 ppt and the total concentration from the 24 chemicals tested by the State was 39 ppt. It is important to note that while there is a health advisory for PFOS/PFOA, no advisory or health level has been determined for the additional 22 chemicals tested by the State.
Currently, granular activated carbon (GAC) filtration is the best available technology for removing PFAS from drinking water. The City has GAC filters, and the existing filters remove some of the PFAS. In addition, the City has been piloting a new type of carbon in its filters since November 2017, and this new carbon has demonstrated enhanced removal of PFAS. Because of this success, City Staff propose to transition all of its filters to this new type of carbon in FY19.
GAC removes the most PFAS when it is the newest, and its capacity to removal PFAS decreases with the age of the carbon. The City currently replaces media in 20% of its filters every year. To further increase PFAS removal, the City is proposing to accelerate the media replacement schedule to approximately 50% yearly, after all of the media is replaced in FY19. City staff believe that changing the media type and frequency of replacement will enable the City to reduce the amount of PFAS in the City’s drinking water to below prospective advisory and/or regulatory levels.
Your approval is requested to authorize an additional purchase of approximately $750,000.00 from Calgon Carbon Corp in FY19, above the existing authorized amount of $161,727.00 for a total of $911,727.00. The additional $750,000.00 will cover the installed cost for approximately 17,150 cubic feet of Granular Activated Carbon (GAC) at a unit price of $43.71/cubic foot which represents the lowest bid received for GAC as part of ITB-4376. The additional $100,000 requested is for the labor to cover the installation of the filter media.
Budget/Fiscal Impact
Funds were not budgeted for PFAS removal as part of the approved FY19 Operations and Maintenance Budget, Council is being requested to appropriate the additional $850,000.00 to the FY19 Water Supply System Operating and Maintenance Budget.
Staff
Prepared by: Sarah Page, Drinking Water Quality Manager, Water Treatment Services
Reviewed by: Craig Hupy, Public Services Area Administrator
Approved by: Howard Lazarus, City Administrator
Body
Whereas, The Water Treatment Services Unit uses Granular Activated Carbon (GAC) in its water filtration process;
Whereas, GAC is the best available technology for removal of per- and polyfluoroalkyl substances (PFAS) and increasing the carbon change-out frequency will improve PFAS removal already seen in the existing treatment process;
Whereas, Calgon Carbon Corp has an existing contract to supply GAC through FY19;
Whereas, The existing resolution for GAC purchase is for approximately $161,727.00 for FY19;
Whereas Calgon Carbon will honor their bid price of $43.71/cubic foot as part of ITB-4376;
Whereas, The recommended total GAC purchase and change-out costs are $911,727.00 for FY19, requiring an additional $750,000.00; and
Whereas, The additional labor required for installation of the new media is estimated at $100,000.
RESOLVED, That Council approve an increase to the Purchase Order with Calgon Carbon for an additional $750,000.00 in FY19 for a total of $911,727.00 for the purchase of granular activated carbon (GAC);
RESOLVED, That Council appropriate $850,000.00 of Water Supply System fund balance to the FY19 Operating and Maintenance Budget for the Water Supply System to accommodate the purchase and installation of the increased amount of GAC; and
RESOLVED, That the City Administrator be authorized to take all necessary actions to implement this resolution.