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TO: Mayor Richard C. Irvin
FROM: David E. Schumacher, P.E.; Superintendent of Water Production
DATE: July 15, 2021
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 2021, filters 5 - 8 in 2022, and filters 9 - 12 in 2023 at the City of Aurora Water Treatment Plant (WTP).
BACKGROUND:
The Water Treatment Plant (WTP) 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. 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 (20+ 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 program for the turnkey service of supplying reactivated GAC is the Custom Municipal Reactivation (CMR) program. The addendum shows pricing options for both CMR and virgin GAC. The WPD utilizes the lower cost CMR option at significant savings to the City, approximately 64%, without sacrificing substantial performance. The City of Aurora has utilized the CMR program since 2014.
DISCUSSION:
Under the standard 36-month lease arrangement, equal monthly payments are made to compensate Calgon for supplying, removing, and reinstalling reactivated material 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 reactivated material.
The most recent lease price for CMR GAC was $33.49/cubic foot which applied to filters 5 - 8 and filters 9 - 12 in 2018 and 2019 respectively. Calgon has proposed an increase to $35.53/cubic foot, which is a 6.09% increase. The proposed new price will be held over the 2021 - 2023 period for the replacement of GAC in all three filter groups. The 36-month total lease costs respectively for filters 1 - 4, 5 - 8, and 9 - 12 are $343,930.40, $343,930.40, and $294,188.40. Filters 9 - 12 require less GAC, thus the lower cost.
Funding for leasing GAC is provided annually in the WPD Budget Account No. 510-4058-511-38-28 and has been requested in the 2022 city budget.
IMPACT STATEMENT:
Negative impacts to the City of Aurora water quality are possible without the timely replacement of spent GAC with CMR GAC.
RECOMMENDATIONS:
That the City Council authorizes an addendum to the Amended and Restated Potable Water Services Agreement with Calgon for pricing of GAC to be installed in filters 1 - 4 during 2021, filters 5 - 8 during 2022, and filters 9 - 12 during 2023. It is further recommended that this matter be forwarded to the Finance Committee for their review and approval.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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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 reactivated GAC in filters 1 - 4 in 2021, filters 5 - 8 in 2022, and filters 9 - 12 in 2023, at a unit cost of $35.53/cubic foot, equaling 36-month lease costs of $343,930.40, $343,940.40, and $294,188.40 respectively; and
WHEREAS, funding for leasing GAC is provided annually in the City Budget Account No. 510-4058-511-38-28 and has been requested in the 2022 city budget;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: does hereby authorize the Purchasing Director 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.