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HomeMy WebLinkAbout8 Northside Well Arsenic Treatment Agenda Item # g i s w . s r� ■ Public Utility Distric"t Memorandum To: Board of Directors From: Mark Thomas Date: February 20, 2008 Subject: Award of the Northside Well Arsenic Treatment System Bid 1. WHY THIS MATTER IS BEFORE THE BOARD Board Approval is required for purchases in excess of $15,000. 2. HISTORY This program is part of the District's Objective No. 1 - Provide an adequate, reliable, and high quality water supply and distribution system to meet current and future needs and Objective No. 5 - Manage the District in an environmentally sound manner. Specific goals under these objectives are Goal No. 1.4 - Provide effective and efficient maintenance and replacement programs, Goal No. 5.4 - The District will conduct its business in an environmentally lawful manner and Goal No. 5.6 - The District will seek to minimize any negative impact of its operations on the environment. The Northside Well is located just north of Interstate 80 on Indian Jack Road. This well has been in service since the 1970s. This well was one of the main sources of water for the District. The normal concentration of arsenic in water produced by the Northside Well ranges from 38 to 47ug/L. As of January 1, 2006, regulations issued by USEPA lowered the allowable level of arsenic in drinking water from 50 ug/L to 10 ug/L. The District evaluated several methods for achieving compliance with the 10ug/L standard. They included varying the well yield, well head treatment, and blending with other water sources. Based upon this evaluation, well head treatment to remove the arsenic was selected as the best alternative for achieving compliance. 3. NEW INFORMATION A set of bid documents were prepared for the purchase of an arsenic treatment system. A request for bids was issued on January 22, 2008. One addendum was issued for this contract, that addressed and clarified certain work to be performed by the District. 1 The bid opening was held on February 11, 2008. Three bids were received. The prices are included in the following table: Supplier Pressure Treatment Start-Up Total Bid Tank Media Services Amount Filtronics $74,200 $131,500 $5,000 $210,700 Severn Trent $164,650 $83,590 $11,600 $259,840 A uaCell Water $140,000 $301,000 $15,000 $456,000 Upon further review of the bids, some material issues were found with the bid submitted by Filtronics. 1) The bid submitted by Filtronics did not include taxes. The bid schedule specifically called for bidders to include tax. 2) The bid submitted by Filtronics did not include shipping. The bid schedule specifically called for bidders to include shipping. 3) The bid documents call for a treatment system that is capable of treating 394 million gallons of water before the arsenic level in the treatment media becomes classified as a hazardous material requiring special disposal. The system submitted by Filtronics would only treat about 56 million gallons without exceeding the allowable limits. Based on the information provided, the treatment system proposed by Severn Trent will meet the contract specifications. In addition, Severn Trent included some additional piping in their bid that the District will be purchasing and installing itself. Deduction of this piping results in an overall price of $237,280.00. 4. SOURCE OF FUNDING $245,932 was included in the FY 08 Water Department Budget for the purchase and start up of an arsenic treatment system. 5. RECOMMENDATION: 1) Find the bid from Filtronics to non-responsive 2) Award the purchase of the Northside Well Arsenic Treatment System to Severn Trent Services in an amount of $237,280.00 Thomas, er Superintendent Ed Taylor, Water Utility Manager Michael D. Holley, General anager 2