Title
AUTHORIZATION TO ENTER INTO AMENDMENT NO. 1 TO THE AGREEMENT WITH CAL-PACIFIC CARBON, LLC, FOR THE PURCHASE OF POWDERED ACTIVATED CARBON
Staff Contact: Craig Johnson, P.E., Director, Water Services
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Purpose and Recommended Action
Recommendation
This is a request for City Council to authorize the City Manager to amend the agreement C-10327 with Cal-Pacific Carbon, LLC (Cal-Pacific) for the purchase of powdered activated carbon (PAC); and approve the increase of expenditure of funds in an amount not to exceed $80,000 for this amendment, and authorize the City Manager, at the City Manager’s discretion, to extend the agreement for three additional one-year terms, in an amount not to exceed $350,000 for the entire term.
Background
The city's Material Management Division in conjunction with the Water Services Department developed an Invitation for Bid (IFB) for fifteen chemicals for water/wastewater treatment. IFB 16-01 was published on July 30, 2015 and seventeen responses were received by the due date of August 18, 2015. The notice of intent to award was sent August 20, 2015. On October 13, 2015, Council authorized the agreement with Cal-Pacific in an amount not to exceed $60,000 through October 13, 2017. The agreement can be extended by the City Manager through October 12, 2020.
PAC is added to the water treatment process to correct odor and taste issues in the raw water supplied to the Pyramid Peak Water Treatment Plant. After assessing performance results, the use of PAC has been very effective at a reasonable cost for this treatment process. Therefore, additional quantity will be required.
Analysis
The increase in the contract amount from $30,000 to $80,000, annually, in an amount not to exceed $350,000 for the entire term of the agreement will provide for additional funding for PAC.
Previous Related Council Action
On October 13, 2015, Council authorized the agreement with Cal-Pacific and expenditure of funds in an amount not to exceed $60,000 for the initial two-year term through October 13, 2017.
Budget and Financial Impacts
Funding is available in the Water Services FY2016-17 operating and capital budgets. Annual budget appropriation thereafter is contingent upon Council approval. The City of Peoria pays 23% of the cost to operate the treatment plant for treatment of their water supply.
|
Cost |
Fund-Department-Account |
|
$80,000 |
2400-17250-523400, Pyramid Peak Water Treatment Plant |
Capital Expense? No
Budgeted? Yes
Requesting Budget or Appropriation Transfer? No
If yes, where will the transfer be taken from?