HomeMy WebLinkAbout1998 Ordinance No. 077•
•
•
ORDINANCE No .f?'l
SERIES OF 1998
BY AUTHORITY
COUNCIL BILL NO . 69
INTRODUCEDBYCOUNC~
iVIEMBER HABENICHT
AN ORDINANCE AUTHORIZING AN AGREEMENT WITH THE AMERICAN
COMMONWEALTH MANAGEMENT SERVICES , INC . (ACMS) AND THE CITY OF
ENGLEWOOD.
WHEREAS, ACMS is a supplier of Granular Activated Carbon (GAC) to the potable
water industry; and
WHEREAS , the City has a need for GAC at the Englewood Allen Water Treatment
Plant because of raw water seasonal algae events in the water which lead to
complaints of musty tastes and odors from Englewood customers ; and
WHEREAS , granular activated carbon is used to filter the raw water supply to
absorb taste and odor compounds ; and
WHEREAS , this process has been used successfully at a number of U.S . water
treatment plants for effective taste and odor removal; and
WHEREAS , the granular activated carbon will be leased because carbon requires
periodic regeneration and possibly correct disposal according to Colorado law and the
proposed ACMS Lease Agreement would provide these services for the Allen Filter
Plant; and
WHEREAS , The ACMS GAC Lease Agr eement will provide carbon for five filters
and labor and equipment for the installation
WHEREAS , the Englewood Water and Sewer Board recommended approval of the
Granular Activated Carbon Lease Agre ement with American Commonwealth
Management Services, Inc. at the October 13 , 1998 meeting;
NOW , THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ENGLEWOOD , COLORADO , AS FOLLOWS :
Section I. The Agreement between the American Commonwealth Management
Services , Inc. and the City of Englewood , Colorado, attached hereto as "Exhibit A ," is
hereby accepted and approved by the Englewood City Council.
Section 2. The Mayor is authorized to execute and the City Clerk to attest and
seal the Agreement for and on behalf of the City of Englewood, Colorado.
Introduced, read in full , and passed on first reading on the 19th day of October,
1998 .
-1 -
Published as a Bill for an Ordinance on the 23rd day of October, 1998 .
Read by title and passed on final reading on the 2nd day of November, 1998.
Published by title as Ordinance No.fl? Series of 1998 , on the 6th day of
November , 1998.
I , Loucrishia A. Ellis, City Clerk of the City of Englewood, Colorado, hereby certify
that the above and foregoing is a true coifY)?i)the Ordina ce passed on final reading
and published by title as Ordinance No. ~Series of 8.
-2-
•
•
•
' .
•
•
•
GAC LEASE AGREEJVIENT
This LEASE AGREEMENT is made and entered into this __ day of ____ _
1998 by and between American Commonwealth Management Services, Inc., a Delaware
corporation , ha ving its principal office in Marlton , New Jerse y, (hereinafter "ACMS ")
and the Cit y of Englewood, Colorado , (hereinafter "the Cit y").
WITNESS ETH
WHEREAS , ACMS is a supplier of Granul ar Acti vated Carbon (hereinafter ("G AC") to
the potable water industry ; and
WHEREAS , the Cit y has a need for GAC at its Alle n Water Treatment Plant (h erei nafter
the "Water Plant "); and
WHEREAS ; the Cit y desires to enter into this Agreement with ACMS to provide GAC to
the Cit y for use at the Water Plant ;
NOW , THEREFORE , for and in considerat ion o f the mutual promises cont aine d in th is
Agreement, the parties hereb y agree as follows:
A. Services
I . ACMS will provide GAC meeting the specificat ions as shown in Exhibit 1, which
is attached to and made part of this Agreement , for five filters , each requirin g
2, 700 cubic feet of GAC beginning in the fourth quarter of 1998 .
2 . ACMS will provide superv ision , labor and all equipment for the installation of the
virgin GAC into the filters on a schedule agreed to by the parties . The Cit y wi ll
I! x
H
I
B
I
T
A
provide all necessary water, electricity , and suitable drainage to accomplish the
installation of the virgin GAC into the filters .
3 . ACMS will test all GAC supplied under this Agreement every six (6) months ,
provided the City submits the samples for testing . The first test will occur six (6)
months after the installation of GAC into the five filters covered under this
Agreement. Such tests shall include Iodine Number, Apparent Densit y. Ash,
Screen Analysis, Effective Size and Uniformity Coefficient. The City ma y
request additional tests and shall pay ACMS $500 /test for all such testing . The
pa yment to ACMS shall be due and pa ya ble thirty (30) days after the test results
are reported to the City .
4 . The City acknowledges that ACMS has title to and is the owner of all GAC
supplied by ACMS under this Agreement. The City ma y not remove the GAC
from the filters or cause the GAC to be removed from the filters except for
emergency maintenance .
B. Consideration
I . The City shall pay ACMS for the services provided hereunder, a monthly rental
fee of $2,060/filter , beginning on the first da y of the month following installation
of the GAC into each filter and continuing for eleven (11) months thereafter. All
such payments shall be due on the first day of each month . Any payment that is
over thirty (30) days past due shall be subject to a late payment fee of one and one
half (1.5%) percent per month. Should the GA C's useful life at the Water Plant be
greater than thirty (30) months , the City can continue to use the GAC with no
additional payments being made to ACMS . However , should the useful life of the
. \
•
•
•
J •
•
•
•
GAC be less than thirty (30) months , the City may either continue to make
monthly payments until all thirty (30) monthl y pa yments ha ve been made to
ACMS or shall pa y the one time payment as set forth in paragraph C. 1.
C. Term
1. The Term of this Agreement shall begin on the installation of GAC into t he first
filter and shall continue twelve (12) months thereafter. The Cit y intends to extend
this Agreement be yond the twelve (12) month period if monies are appropriated .
In such event the Agreement will be automaticall y extended on a month-to-month
basis until one part y pro vides not less than th irt y (30) da ys ' prior written notice to
the other party of terminat ion . Should the Cit y termin ate or fail to extend t his
Agreement , the y shall pa y ACMS a one time pa yment as set forth below :
Payment to ACMS = $30 9,000 less the sum of all pa yments made to the date of
termination. After such pa yment as shown abov e is made by the Cit y, the title to
the GAC shall remain with ACMS . Howe ver, the Cit y ma y continue to use the
GAC for as long as the Cit y wishes with o ut an y further pa yment to ACMS .
2 . Notwithstanding Section C.1 above , it is the intent of the parties to put in pl ace a
new agreement with similar terms and conditi o ns between the parties co vering th e
next GAC change out , provided the spent GAC from the filters shows that it can
be reactivated and can be reused at the Water Pl ant Under this ne w agreement ,
ACMS will suppl y a blend of "Custom Reacti vated "/Vi rgin GAC to the Cit y for
use at the Water Pl ant. The monthl y pa yments to A.C M S by the C it y under thi s
new agreement will be reduced to $1,85 0/filte r
D . Termination
Upon termination of this Agreement, the City may request the removal of all GAC at any
time thereafter . ACMS will remove all GAC within thirty (30) days of such notice ,
transport the spent GAC to ACMS' reactivation plant and reacti vate all spent GAC , at its
sole cost and expense , and shall provide the City with TCLP test results before and after
reacti vation in accordance with in all applicable regulations .
E. Force Majeure
Either party hereto shall be excused to the extent that its performance is prevented by an y
circumstance be yond it s reasonable control , including , but not limited to , fire , explosion ,
strike , labor dispute, war, act of God , riot, or action of an y g ov ernmental authority.
F. Colorado Law to Govern
This Agreement shall be governed by and construed in accordance with the laws of the
State of Colorado , without giving effect to conflict of law principles .
G . Notices
All notices required under this Agreement shall be gi ven by Certified Mail, Return
Re ceipt Requested , and shall be deemed made when deposited in the US mail , properl y
addressed , with postage prepaid, as follows :
American Commonwealth Management Services Compan y, Inc.
10000 Sagemore Drive
Suite 10101
Marlton , New Jersey 08053
Cit y of Englewood
Utilities Department
3400 South Elati Street
Englewood , Colorado 80110
' '
•
•
•
I ,
•
•
•
H. Miscellaneous
1. This Agreement shall not be assigned by either party without the written consent
of the other party , which consent shall not be unreasonably withheld An y
assignee shall assume all the obligations of this Agreement and the assignor shall
not be relieved of its obligations under this Agreement by reason of such
assignment.
2. This Agreement constitutes the entire agreement between the parties in
connection with the supply of GAC to be provided for use in the filters des ignated
herein .
3 . Any waiver by either party of any provision or condition of this Agreement shall
not be construed or deemed to be a waiver of an y other provision or condition of
this Agreement nor a waiver of a subsequent breach of the same pro vision or
condition, unless such waiver be so expressed in writing and signed by the part y
to be bound.
4 . If an y provision contained herein is held to be unenforceable by a court oflaw or
equity, this Agreement shall be construed as if such pro vision was not contained
herein and the unenforceability of such provision shall not be held to render an y
other provision of this Agreement unenforceable .
5. ACMS hereby agrees to indemnify and save harmless the City against an y and all
liability, loss or damage which the City ma y incur , suffer or be required to pa y by
reason in connection with the acts of transportation, handling , treatment, storag e,
reacti vation , disposal or other acti vit y in connection with the GAC which is the
subject hereof, provided such liability , loss or damage is not caused by the
negligence or intentional acts of the City .
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by
their duly authorized representatives .
CITY OF ENGLEWOOD
Thomas J. Burns
Title Mayor
AMERICAN COM1vf ONWEAL TH
MANAGEivlENT SERVICES COMPANY,
By,~~ Title~~ T
Date __ C\~-~;)._S_-~q~13 __ _
' '
•
•
•
J •
• EXHIBIT I
GAC QUALITY CONTROL SPECIFICAITONS
1. IODINE NUN!BER (Min.) 900
2 . MOISTURE , wt % (Max.) 2
3. ABRASION NUMBER (Min.) 75
4 . EFFECTIVE SIZE, mm 1.0-1.2
5 . UNIFORNITTY COEFFICIENT (Max.) I. 5
6 . SIEVE SIZE, US SIEVE SERIES, wt %
LARGER THAN N O 8 (Max.) 5
SMALLER THAN NO 20 (Max .) 4
7 . ASH, wt% (Max.) 9 • 8. WATER SOLUBLE ASH, wt% 0 .5
9 . MA,,'(_ WATER EXTRACT ABLE PHOSPHATE wt% l . 5
l 0. BULK DENSITY, lbs ./cu . ft . 28
1 1 BACKWASH EXPANSION
'tvlIN . @ 16 gpm/sq . ft . 70F 23 %
'tvlIN. @ 18 gpm/sq . ft . 60F 38%
•
WARRANTY
ACMS warrants that the GAC furnished under this Agreement shall perform the function
of effective turbidity removal. For the purposes of warranty, effective turbidit y removal
shall be defined as that degree of turbidity removal presently accomplished by the City in
its normal filter treatment process . The filters will, during the normal plant operation,
receive settled water with a turbidity less than or equal to 2 .0 NTU and produce a filtered
water quality less than 0 .1 NTU. Filter run volumes when terminated for headloss or
turbidity breakthrough will be greater than l 0,000 gallons/square foot of filter surface
area. The warrant y is contingent on the following:
A. Filters will be maintained in good operating condition by the Cit y and will be
operated in accordance with accepted industry practice .
B. GAC bed depth will be maintained as close to the initial thirty-six (36) inch
bed depth as possible during the warranty period , with the exception of an
allowable attrition loss of up to two inches of bed depth per filter per year. If
the losses should exceed two inches of bed depth in an y filter during any one
year of operation, the excess GAC loss will be immediately replaced with
GAC meeting the specifications in EXHIBIT I of this Agreement. For an y
reason other than the sole negligence of ACMS, all labor, transportation and
other expense involved in replacing the GAC will be paid by the Cit y.
C. Normal treatment of the water prior to the GAC filters will continue to be
practiced . This includes suitable coagulation and clarification of the raw
water and stabilization of the clarified water before filtration .
D. Should the GAC fail to meet the warranty due to encrustation by in o rganic
precipitates such as calcium carbonate, or due to excessive biological growth,
this shall not be a breach of the warranty In such case, the Cit y shall bear the
cost of cleaning the GAC to restore performance in accordance with
procedures recommended by ACMS .
E. Should the GAC fail to meet the warranty and ACMS has not taken steps to
resol ve the problem within thirty (30) days after notification by the City of the
breach of warranty, then the City may replace the defective GAC and seek
reco ver y of all costs including, but not limited to , materials , legal , engineering
and administrative costs . The City must, when taking such action , return to
ACMS any and all GAC removed .
EXCEPT AS SET FORTH IN THIS EXHIBIT II , ACMS MAKES NOW ARR.-\.!'\J TY
EXPRESSED OR Ilvt:PLIED , INCLUDING THEW ARRANTIES OF
MERCHANT ABILITY OR FITNESS FOR A PARTICULAR PURPORSE , WITH
RESPECT TO THE GAC OR THE SER VICES TO BE PROVIDED UNDER TI-DS
. '
•
•
•
•
•
•
AGREEiv1ENT . ACMS SHALL HA VE NO LIABILITY FOR ANY INDIRECT ,
INCIDENT AL OR CONSEQUENTIAL DA.t'v1AGES ARISING OUT OF A BREACH
OF THIS WARRANTY.
•
•
•
I . •
Date
October 19 , 1998
INITIATED BY
Utilities Department
COUNCIL COMMUNICATION
Agenda Item
10 a ii
Subject
Granular Activated Carbon
Lease Agreement
STAFF SOURCE
Stewart Fonda , Director of Utilities
COUNCIL GOAL AND PREVIOUS COUNCIL ACTION
None .
RECOMMENDED ACTION
The Water and Sewer Board , at their October 13, 1998 meeting , recommended Counc il
approval of the GAC (Granular Activated Carbon) Lease Agreement with American
Commonwealth Management Services , Inc. (ACMS) .
BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED
Seasonal algae events in the Allen Water Treatment Plant's raw water supplies lead to
complaints of musty tastes and odors from Englewood customers . The addition of granular
activated carbon to the raw water supply may be used to adsorb taste and odor compounds .
This is a strategy that has been used successfully at a number of U.S. water treatment plants
for effective taste and odor removal. The GAC is leased since carbon requires per iodic
regeneration and possibly correct disposal accord ing to Colorado law. The proposed ACMS
Lease Agreement would provide these services .
Calgon and AmeriGan Commonwealth Management Serv ices , Inc. were asked to submit
proposals for providing GAC for the Allen Plant Improvement Project. ACMS's proposal was
tl1e lowest price subm itted during the allotted time frame .
The ACMS GAC Lease Agreement will provide carbon for five filters , each requ ir i ng 2,700
cubic feet of GAC , beginning the fourth quarter of 1998 . The Lease Agreement prov ides for
labor and equipment for the installation into the filters and GAC testing every six months . The
Agreement is for 30 monthly payments if yearly monies are appropriated .
. . \
FINANCIAL IMPACT
The Lease Agreement will enable the City to pay ACMS a monthly rental fee of $2 ,060/filter
continuing for one year. Beyond the 12 month period, the Agreement is automatically
extended on a month-to-month basis until one party gives a thirty days notice prior to
termination. Total cost over a 30 month period will be $309 ,000. If testing indicates the GAC
useful life is longer than 30 months , the City may use the media at no additional cost.
LIST OF ATTACHMENTS
Ordinance
GAS Lease Agreement
•
•
•