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CITY OF COLTON Item #20 SUPPLEMENTAL AGENDA REPORT FOR THE COLTON UTILITY AUTHORITY MEETING OF OCTOBER 19, 2004 TO: HONORABLE CHAIRPERSON AND UTILITY AUTHORITY MEMBERS FROM: ERIC R. FRASER, DIRECTOR OF WATER & WASTEWATER OPERATIONS SUBJECT: AWARD OF CONTRACT FOR PURCHASE OF REPLACEMENT RESIN FOR WELL NO. 24 PERCHLORATE TREATMENT SYSTEM DATE: OCTOBER 12, 2004 BACKGROUND: Two wellhead treatment systems that remove perchlorate to levels below the State of California Action Level of 6 parts per billion were installed to treat the water produced by three wells that supply water to the City. These systems use an ion -exchange resin process to remove the perchlorate. This resin must be replaced when fully saturated with perchlorate. DISCUSSION/ANALYSIS: Several Market factors are currently driving the research and development of improved resin technologies. These new generation resins remove perchlorate more efficiently at less cost. The Water Division has an immediate need to replace the resin at the Well No. 24 site. Staff has reviewed the resins currently on the market and recommends that a new resin developed by Oak Ridge National Laboratory and manufactured by Purolite called A -530E be utilized on a trial basis at this location. The estimated cost per acre-foot of treated water would be approximately $70 per acre-foot versus $200 per acre-foot currently paid by the City for the resin that is in use at this time. Because the absorptive capacity of the resin at the Well 24 site is near exhaustion, it is imperative that the resin be replaced immediately. Failure to do so can result in perchlorate levels leaving the treatment plant above the state action level. In accordance with City purchasing policy sealed bids were solicited and opened on Monday, October 18, 2004 at 3:30 PM. GE Water Technologies was the low bidder in the amount of $90,000. Please see attached Bid Analysis Worksheet. FINANCIAL IMPACT: Sufficient funds are available in Capital Improvement Account Number 521-8100-8105-3895-0000-000. ENVIRONMENTAL IMPACT: None CONFLICT OF INTEREST — Gift Disclosure Requirements Exact Business Name: GE Water Technologies President or Equal: George Oliver, President Contact: Dave Jellison, Western Regional Manager RECOMMENDATION: Staff recommends that the Colton Utility Authority authorize the City Manager to execute a contract with GE Water Technologies to provide 600 cubic feet of Purolite A-530 resin in an amount not -to -exceed $90,000. Prepared by: Eric Fraser, Director of Water and Wastewater REVIEW TEAM ONLY City Attorney: L) .i 4 1k8- l Lg'�S'2" Finance Director: n ` OTHER: City Manager: �� '��L I��Ct �1