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Home My WebLink About2008 Resolution No. 002• • • RESOLUTIO NO . A SER IES OF 200 A RESOI UTION AU TH ORIZI 'GA 'AMENDME T TO TII E AG KFE~1ENT FOR TH E LEASE OF THREE CA RBO FILTERS FOK TII E Al I EN \\"A I ER TK EAf~IENT PLA T. \VHEREAS, seaso nal algae events in 1hc Allen Wn1cr rrcn tmcn1 Plum's r(IW wmcr suppl ies lead to co mplaints of mu sty tastes and odors from Englewood cusio mcrs: nnd WHEREA S. b'Tanular activated carbon (GAC) remove th e or~nn lc mntcrinl whic h ca uses the taste an d 0dor problems and has been used successfu ll y for cfTc tive ins ,.= nnd odor rc movn l: nnd WHEREAS, th e granu lar activated carbon is lea sed becau se carbon rcqum pcrio,.li c regenera tion and correct di spo sa l pur., 1an1 to Colorado law : n;,d WHEREAS , th e City Counci l of the City of Englewood . oloradc, 11wnrded a ncg,llintcd Contract for the lease of gran ul ar ac tivated carbo n filters in O tobcr 199 for the Allen Wnte r Treatment Pl ant; and WHEREAS, in February of2005 the City signed a Lease Agree ment with American An~lian Environmental Technologies, Ll .C (A.A.E .T .. LP), (fonnerly known ns America n arbo n Services and American Water S ... rvices), for five granular ac1ivntcd carbon ( ,A C) filler., including the carbon and the servicing co ncerning reactivation for n mon1hl y fc1..·: nnd WHEREAS , the gran ular activated carbon lease agreement nlso provide s for labor nnd eq uipment for the rem oval, regenerat ion and installati on of the filter s along w11h th e pcl'!,xlic testing o f the filter medium ; and WHEREAS , the 2005 Agreement all owed six one yea , tcnn renewal s: -md WHEREAS , as a res ult of higher natural gas and diesel fuel prices as well 11s the price fo r virgin GAC makeup, the costs of exchanging the GAC in thn .. -c of the filte rs will in rcnsc frnm SI ,950 per filterto S2,450 per filter monthly fort he falVwinter of 2007/2008 : an .I WHEREAS, the parties wish to amend the Lea se Agreement to provi de for th e mcrcu scd cos ts fo r reacti vation of the carbon fo r three of the fi ve filter s; and WHEREAS. the passage of thi s Re so luti on will amend the current Agreement 10 rtllow fo r the price mcrease of$5 00 per month for three of the fi ve filters : ·o w, THEREFORE. BE IT RESOLVED BY THE CITY cou 'CIL OF TII EC ITY OF E GLE\VOOD, COLORADO.THAT: Sec1i on I. Th e Ci 1y Coun cil of 1h e Ci 1y of Eng le wood. Co lornd o hereb y ou1hon1c, 1hc pri ce increa se fo r lh e A.A .E.T .. LP Lease Agree menl for 1he Allen Wo1cr Trca1111c111 1'111111 ·, (IA ' fi ll ers fo r lhree fi ll ers from S1,950 per filler per 1110111h 10 S2.450 per filler per 111011 1h fm 1hc du ration of the Lea se. ADOPTED AND APPROVED 1hi s 22 nd dny of Jonuo ry , 2008 . mes K. Wood ward , Ma yo r I, Loucrishia A. Ell is, Ci 1y Clerk for lhe Ci1 y of Englewood , C above is a true copy of Resol ut ion No . ..d:::..._, Series o 2008. • • • • • • COUNCIL COMMUNICATION Date: Janu ary 22 , 2007 I Agenda Item: 11 Ci Initiated By : Uti li ties D epartm en t I Subject : G ranular Acti vated Carbo n Lease Agreement I Staff Source : Stewa rt H . Fo nda , D irec tor of U tiliti es --' COUNCIL GOAL AND PREVIOUS COUNCIL ACTION Co un ci l ap p roved th e GAC (Granul ar Acti va ted Ca rb o n) Lease Agreeme nt with Ameri ca n Comm onwealth Manage ment Se rv ices, In c. (ACM S) at th ei r O ctober 19, 1998 mee tin g. Co un ci l ap p roved a GAC Lease Agree ment w ith Am erica n Water Resou rce at th eir Febru ary 22, 2005 mee ting. RECOMMENDED ACTION The Water and Sewe r Board , at their Janu ary 9, 2008 meetin g, recommended City Council ado pt a Reso lut io n approving th e G AC I.e ase Agree ment in th e amount of $2,450 per filter for three filters . BACKGROUND , A \IALYSIS, AND ALTERNATIVES IDENTIFIED Seaso nal algae eve nts in th -, Allen Vv oter Trea tm ent Plant's raw water supplies lead to complaints ' mu sty tast es and odo rs from Engl ewood customers. Carb on filters have b ee n use d su cces sfully fo r effecti ve tast e and odor rem oval. Th e granular acti vated carb on removes th e orga ni c and ino rgani c material w hi ch ca us es th e ta ste and odor p ro blems . Th e GAC is leased sin ce ca rb on req uires p eri o di c regenerati o n and poss ibly correc t disposal acco rding to Colorado law. Th e ex isting ACMS Lea se Agreem ent has bee n p rov id ing th ese servi ces but has expired. ACMS is no lo ng er in ex istence, but its affiliated company, A.A.E.T. (A m erica n Anglia n Environm en tal Tec hn ologi es, LL C) has taken ove r th at lin e of bus iness . Th e ACM S/ A.A.E.T. G AC Lease Agree ment, w hich bega n th e fo urth qua rt er of 1998, provides ca rbon fo r fi ve fi lters , eac h req ui rin g 2,700 c ubic fee t of GAC. The A.A.E.T. lease agree m en t p rovides fo r labor an d equi pment for th e rem oval, rege n erati on and inst all ati on into the filters along wit h GA C tes ting every six month s. Due to in c rease d cost of fuel and ,ncrea sed costs for reacti vati o n of th e c arbon, th e parti es wish to redo th e lea se ag reeme nt to provide for th e increase d expenses. The prop ose d in c rease over th e ex istin g co st is $500 per month for eac h fi lter, making replace ment G AC for th e three fi lters $2,450 p er m o nth, per filter. Total annu al cost w ill b e $88,200 . FINANC IAL IMPACT Th es e In creas ed exp en e have bee n budge ted fo r In WOB . LIST OF ATTACHMENTS GAC M edia Re place me nt Proposa l Reso lut io n • • • • • • ~ American ~Water® Carbon Services Group December 12, 2007 Mr . Wilfiam McCormick Superintendent of Water City of Englewood 1000 Englewood Parkway Englewood , CO 80110 RE : GAC Medid Replacement Proposal -Fall 2007 Mr. McCormick : The purpose of this letter is to confirm our pricing for the exchange of filters 2, 3 , and -4 for this fall/winter of 2007/2008 . American AngUan Environmental Technologies (MET, LP), known as American Carbon Sorvices (ACS) is your supplier of Activated Carbon and Reactivation Services, have in their inventOI)' a sufficient amount of GAC media , previously used by the City , to exchange one (1) of the three (3) filter$ scheduled for exchange as noted in this letter. The spent GAC media from the three (3) filters will be Custom reactivated, screened to an 8" x 20• mesh , and placed either back into either filters 2, 3 and 4 or placed in ACS inventory for the Cities future needs . Our price to exchange the (3) filters with Custom Reactivated / V.-gin GAC media blend will be $2,450.00 per filler . This price is effective starting on the 111 day of the following month after the exchange of the noted three (3) filte111. The terms and condiions of our cw-rent GAC Lease Agreement will not change and the term of the lease payments will stay at Ulirty equal payments over a thirty (30) month period . The start date of this Lease wiH be the 111 day of the new month following the exchange of filters 2, 3, and 4 . The increase in our price for these three (3) filters is a direct result of higher natural gas costs, diesel fuel prices, as well as the price we pay for virgin GAC used as makeup . ACS is sorry for this increase in our price but circumstances beyond our control forces this increa,;e . I und er.itand If you need to solic~ other prices and I assure you that we wm rema in yo ur supplier go ing forward . Pledse ad~ise as to your course of action or when th is work can commence and we will prep a schedule to complete these exchanges. A.AE .T., LP (known as ACS) appreciate s the opportunity to be of service to you and the City of Englewood. If you have any questions please give me a call . Very Tru ly Yours , t!~ Manag ing Director Carbon SeNices Group • • •