R2005-104 RESCINDING BID AND AWARDING PURCHASE ORDER

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', _ , } � COUNCIL COMMUNICATION FORM PURCHASING & INTERNAL SERVICES MEMORANDUM � #OS - 31 July 28, 2005 TO: Honorable Mayor Osborne and City Council FROM: Steve Garman, City Manager � Ron Neufeld, Financial Management Director � Deborah M. Perry, Purchasing Supervisor� SUBJECT: Rescind bid for bulk activated carbon SUMMARY RECOMMENDATION: Staff recommends rescinding the contract of Norit Americas, Inc. for cause. Staff also requests awarding contract to Jacobi Carbons, Inc. to furnish bulk activated carbon. BACKGROUND: On April 4, 2005, City Council approved awarding a contract to Norit Americas, Inc., to furnish bulk activated carbon. The carbon is used in the water treatment process for taste and odor control, and also to control atrazine. The carbon supplied by Norit Americas is lignite based. This means it is a heavier coal which absorbs water and settles out � quicker. The South Water Treatment Plant has been experiencing difficulties feeding the lignite based carbon in our chemical feed system. The carbon is plugging the carbon feed transfer lines, plugging and caking the chemical feed's rotor dip cups, caking inside the discharge feed lines, ' and settling out of the product in our continuous mixer tanks. ' Representatives from Norit Americas have been contacted several times to discuss the difficulty � in feeding the product. Norit has suggested the City install additional pumps or reduce the size ' ' of the feed lines. These are major modifications to our chemical feed equipment and are simply � not feasible. ' The best solution is to switch to a chemical vendor who does not have a lignite based product. ' The second low bidder of Acticarb has such a product. However, since several months have past, ' they have allocated their product supply to other customers and cannot hold their original bid price. The third low bidder of Jacobi Carbons, Inc. does not have a lignite based carbon. They provide a bituminous carbon. They have adequate supply to meet the City's demand for the remainder of the contract. Jacobi will hold their ariginal bid price of$679/ton firm for the remainder of the � contract. '� Staff requests awarding a contract to Jacobi Carbons, Inc. to furnish bulk activated carbon for the i period August 2005 through April 30, 2007. Estimated usage is 220 to 375 tons per year.