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TO: Mayor Thomas J. Weisner
FROM: David E. Schumacher, P.E.; Superintendent of Water Production
DATE: July 29, 2014
SUBJECT:
A Resolution Authorizing an Addendum to the Amended and Restated Potable Water Service Agreement with Calgon Carbon Corporation (Calgon) for the lease of Granular Activated Carbon (GAC) in filters 5 - 8 for the Water Production Division (WPD).
PURPOSE:
To obtain City Council approval for an addendum to the subject agreement for pricing and installation of GAC for filters 5 - 8 in 2014 at the City of Aurora Water Treatment Plant (WTP).
BACKGROUND:
The 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 onto the GAC which remains in the filter. Over time the GAC is expended (spent) and needs to be replaced/refreshed, typically between 36 and 42 months. This is done on a staggered schedule in three groups of filters, filters 1 - 4, 5 - 8, and 9 - 12.
The WPD currently leases GAC under an existing agreement with Calgon. Historically, the WPD has always utilized brand new GAC, otherwise known as "virgin" GAC. Due to escalating costs of virgin GAC, Calgon has provided an option to utilize "reactivated" GAC under their Custom Municipal Reactivation (CMR) program. Reactivation, in simple terms, is the high temperature heating of the spent GAC which volatilizes the adsorbed compounds thus returning the GAC to additional productive service. The opportunity for cost savings from utilization of reactivated GAC is significant without sacrificing substantial performance when compared to virgin GAC.
Earlier this year the WPD began a trial to compare the performance of reactivated GAC versus virgin GAC in filters 1 - 4. As the trial is in the very early stages, performance and longevity data is not yet available for the reactivated material. Based on the available information from other water treatment facilties utilizing reactivated GAC, both Calgon and the WPD believe that reactivated GAC may be utilized in all twelve WTP filters once performance can be fully evaluated and verified. The opportunity for cost savings from utilization of reactivated GAC is significant (approximately 40% savings) without sacrificing substantial performance when compared to virgin GAC.
DISCUSSION:
As the GAC in filters 5 - 8 is needing replacement, the WPD plans to continue the evaluation of reactivated versus virgin GAC. The original plan was for filters 5 & 6 to receive virgin GAC and filters 7 & 8 to receive previously reactivated GAC from filters 2 & 4 (removed in April 2014), all completed in a single, week-long project by Calgon. However, due to an issue by Calgon in processing the spent GAC from filters 2 & 4 in April 2014, the GAC was unable to be reactivated. Because of this problem and the delay it will cause in replacing GAC in filters 5 - 8, Calgon has offered to supply all GAC, both virgin and reactivated, at the price of $29.70/cubic foot, whereas virgin GAC would normally cost $49.40/cubic foot. Thus, virgin GAC will be installed in filters 5 & 6 at significant savings to the city compared to normal pricing, and spent GAC from those two filters will be reactivated and returned for installation in filters 7 & 8 approximately a month later. This will allow continued testing and evaluation of reactivated GAC as a viable long-term option at the WTP.
The original pricing for the 36 month lease period would have been $382,844.00, but under the reduced pricing offer due to Calgon's processing error, the actual pricing for the 36 month lease period will be $287,496.00, for a savings of $95,348.00 (24.9%).
Funding for leasing GAC is provided annually in the WPD budget Account No. 510-4058-511-38-28.
IMPACT STATEMENT:
None.
RECOMMENDATIONS:
That the City Council authorizes an addendum to the Amended and Restated Potable Water Service Agreement with Calgon for pricing of GAC to be installed in filters 5 - 8 in 2014. It is further recommended that this matter be forwarded to the Buildings, Grounds, and Infrastructure Committee for their review and approval.
cc: Alderman Peters, Chairman
Alderman Garza
Alderman Bugg
Alderman Saville, Alternate
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 lease of Granular Activated Carbon in filters 5 - 8 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 both reactivated and virgin granular activated carbon (GAC) in the City Water Treatment Plant's 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 in filters 5 - 8 with both reactivated and virgin GAC in 2014 at a common price of $29.70 per cubic foot over the 36 month lease period, with associated savings of $95,348.00; and
WHEREAS, funding for leasing of GAC is provided annually in the City Budget in Account No. 510-4058-511-38-28;
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, Pittsburgh, PA, for the lease of Granular Activated Carbon in filters 5 - 8 at the City of Aurora Water Treatment Plant.
PASSED AND APPROVED on ______________.
AYES ____ NAYS ____ NOT VOTING ____ ABSENT ____
____________________________ __________________________
Alderman Bohman, Ward 1 Alderman Garza, Ward 2
____________________________ __________________________
Alderman Mesiacos, Ward 3 Alderman Donnell, Ward 4
____________________________ __________________________
Alderman Peters, Ward 5 Alderman Saville, Ward 6
____________________________ __________________________
Alderman Hart-Burns, Ward 7 Alderman Mervine, Ward 8
____________________________ __________________________
Alderman Bugg, Ward 9 Alderman Johnson, Ward 10
____________________________ __________________________
Alderman Irvin, At Large Alderman O'Connor, At Large
ATTEST:
____________________________ __________________________
City Clerk Mayor