REPORT TO THE CITY COUNCIL FROM: BROCK D. BUCHE, PE, PLS, Interim Director Department of Public Utilities BY: BUD TICKEL, Assistant Director - Water Department of Public Utilities - Water Division ROBERT LITTLE, Water System Supervisor - Water Quality Department of Public Utilities - Water Division SUBJECT ..Title Award a requirements contract in the amount of $1,194,460.10 to Calgon Carbon Corporation, for delivery, installation, removal and destruction or regeneration of Granular Activated Carbon - Bid File 9625 (Citywide) ..Body RECOMMENDATION Staff recommends that City Council award a requirements contract in the amount of $1,194,460.10 to Calgon Carbon Corporation, for delivery, installation, removal and destruction or regeneration of Granular Activated Carbon (GAC) and authorize the Director of Public Utilities to execute a three-year contract with provisions for two one-year extensions. EXECUTIVE SUMMARY The Department of Public Utilities - Water Division (Division) routinely uses GAC for treatment of drinking water wells and the Surface Water Treatment Facilities (SWTFs). By executing a requirements contract with one supplier, it establishes a firm price for a specified time allowing the City to make purchases as needed. This contract is secured through the competitive bidding process. GAC Treatment is necessary for affected wells to remain in compliance with drinking water standards, and funding for this contract is included in the FY2023 Water Enterprise Fund operating budget. Staff recommends award of a requirements contract to Calgon Carbon Corporation of Pittsburgh, Pennsylvania for these services in the amount of $1,194,460.10. BACKGROUND The Division operates 23 GAC treatment sites, which treats 25 wells contaminated with pesticides. In addition, there are 12 current GAC treatment sites and 26 non-treatment sites impacted with 1,2,3-TCP that are currently out of service, which could require either additional GAC vessel(s) on existing sites or construction of new GAC treatment at non-treatment sites. Hence, the Division uses GAC in the treatment of drinking water at well sites and the SWTF's. The SWTF's currently treat up to 88 million gallons of water daily. A requirement contract establishes firm pricing, secured through competitive bidding, for a specific time and allows the City to purchase GAC as needed. A Notice Inviting Bids was published on January 5, 2022. Four Building Exchanges were faxed Notice Inviting Bids, and 19 specifications were distributed to prospective bidders. The bid opening was February 1, 2022, and bids will expire on August 2, 2022. The lowest responsive bid was from Calgon Carbon in the amount of $1,194,460.10. The specifications included several options that allow the City to choose the best method of delivery and installation to the treatment sites. While not every option will be used, pricing for each option is required in advance of the award of contract. It is recommended that a contract in the amount of $1,194,460.10 be awarded to Calgon Carbon Corporation of Pittsburgh, Pennsylvania based on the FY 2023 budget amount. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act Guidelines Section 15378 this item does not qualify as a "project" and is therefore exempt from the California Environmental Quality Act requirements. LOCAL PREFERENCE Local preference was not applied because neither of the bidders qualify as a local business according to the Fresno Municipal Code Section 4-108. FISCAL IMPACT The General Fund is not impacted by this citywide expenditure, as the appropriations for GAC are included within the FY2023 Water Enterprise Fund operating budget. Attachments: Attachment 1 - Bid Evaluation Attachment 2 - Sample Contract