cover
TO: Mayor Richard C. Irvin
FROM: Robert Leible, Superintendent of Water Production
DATE: October 7, 2024
SUBJECT:
A resolution authorizing an addendum to The Amended and Restated Potable Water Service Agreement with Calgon Carbon Corporation (Calgon) for the continued lease of Granular Activated Carbon (GAC) in filter groups 1 - 4, 5 - 8, and 9 - 12 for the Water Production Division.
PURPOSE:
To obtain City Council approval for an addendum to the subject agreement for pricing and installation of GAC for filters 1 - 4 in 2025, filters 5 - 8 in 2026, and filters 9 - 12 in 2027 at the City of Aurora Water Treatment Plant (WTP).
BACKGROUND:
The Water Treatment Plant has 12 dual-media filters which contain sand and GAC which are used to remove solids prior to disinfection of the water. In addition, the GAC media serves to remove taste and odor compounds which are adsorbed on the GAC in the filter bed. GAC will continue to play a very important and necessary role in removal of PFAS compounds found in source water. Over time the GAC is expended (spent) and needs to be replaced/refreshed, typically between 36 - 42 months. This is done on a staggered basis for the three groups of filters listed above.
The Water Production Division (WPD) has standardized the use of specific GAC, Calgon F-300, as its primary filtration media due to its long-term (25+ years) successful and proven performance. F-300 can be considered a sole source product due to its attributes as a domestic, bituminous coal source and a specific manufacturing method referred to as reagglomeration which produces a high activity, durable, granular product capable of withstanding abrasion associated with repeated backwashing, hydraulic transport, and reactivation for reuse. Spent GAC is reactivated via a high-temperature heating process which volatilizes the adsorbed compounds thus returning the used GAC to additional productive service. Calgon's turnkey service of supplying reactivated GAC is the Custom Municipal Reactivation (CMR) program. The addendum provides the pricing options for both CMR and virgin F-300 GAC, as well as an optional high-grade virgin product called Filtrasorb 830 Sentry. The WPD typically utilizes the lower cost CMR option, which is 59% the cost of virgin GAC and does not sacrifice substantial performance. However, all filters must occasionally be replenished with virgin GAC and then subsequent replacements utilize the CMR program.
DISCUSSION:
Under the standard 36-month lease arrangement, equal monthly payments are made to compensate Calgon for supplying, removing, and reinstalling GAC when requested by the WPD. The city assumes no risk if the GAC must be replaced prematurely due to unforeseen circumstances, nor does the city need to make a lump sum purchase payment, as Calgon maintains ownership of the GAC media. Furthermore, this approach allows the city to save money for a period of time under the Extended Use provision. Beginning with the 37th month of use, lease payments are reduced 50% until which time the GAC is spent and is replaced with virgin or reactivated material.
The current leasing agreement applied to GAC during the period of 2021 - 2023, with no replacement occurring in 2024. In that agreement CMR material was $35.53/cubic foot and virgin material was $58.23/cubic foot. Updated pricing for the 2025 - 2027 period will be $40.10/cubic foot for CMR, a 12.86% increase and $68.48/cubic foot for virgin, a 17.6% increase. The Filtrasorb 830 option is $78.77/cubic foot. The 36-month total lease costs are the following based on planned usage of virgin or CMR material and the quantities required in each filter group:
Filters 1 - 4 Virgin F-300 = $662,886.40
Filters 5 and 6 Virgin F-300 = $331,443.20
Filters 7 and 8 CMR F-300 = $194,084.00
Filters 9 - 12 CMR F-300 = $332,028.00
Funding for leasing GAC is provided annually in the WPD Budget Account No. 510-4058-511-38-28.
The local vendor preference policy does not apply per Section 2-409 as this is a noncompetitive situation.
IMPACT STATEMENT:
Negative impacts to the City of Aurora water quality are possible without the timely and planned replacement of spent GAC with either virgin or CMR GAC.
RECOMMENDATIONS:
Request committee and city council approval of a resolution authorizing an addendum to the Amended and Restated Potable Water Services Agreement with Calgon for the lease pricing options for GAC to be installed in filters 1 - 4 during 2025, filters 5 - 8 during 2026, and filters 9 - 12 during 2027.
cc: Infrastructure & Technology Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution authorizing an Addendum to the Amended and Restated Potable Water Service Agreement with Calgon Carbon Corporation for the continued lease of Granular Activated Carbon in filter groups 1 - 4, 5 - 8, and 9 - 12 for the Water Production Division.
body
WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the Water Production Division utilizes granular activated carbon (GAC) in the City Water Treatment Plant filters and the GAC is leased from Calgon Carbon Corporation under an existing lease agreement; and
WHEREAS, the Water Production Division seeks to replace the GAC filter media with the specified virgin or Custom Municipal Reactivated GAC in filters 1 - 12 during 2025 - 2027 at the unit costs of $40.10/cubic foot for CMR material, $68.48/cubic foot for virgin F-300, or $78.77/cubic foot for virgin F-830 Sentry; and
WHEREAS, funding for leasing GAC from Calgon Carbon Corporation is provided annually in the City Budget Account No. 510-4058-511-38-28 and has been requested in the 2025 city budget;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: does hereby authorize the Director of Purchasing to execute the Addendum to the Amended and Restated Potable Water Service Agreement with Calgon Carbon Corporation for the continued lease of Granular Activated Carbon in filters 1 - 4, 5 - 8, and 9 - 12 at the City of Aurora Water Treatment Plant.