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Barr Engineering Company 4700 West 77th Street • Minneapolis, MN 55435-4803 Phone: 952-832-2600 • Fax: 952-832-2601 • www.barr.com An EEO Employer BARR Minneapolis, MN •Hibbing, MN•Duluth, MN•Ann Arbor, MI •Jefferson City, MO•Bismarck, ND February 4, 2013 Grant Wyffels Public Works Director City Hall, City of New Brighton 803 Old Highway 8 NW New Brighton, MN 55112 Re: Improvement No. 13-4 Granular Activated Carbon (GAC) Procurement Dear Mr. Wyffels: The purpose of this letter is to recommend the award of the contract for City of New Brighton Improvement No 13-4, Granular Activated Carbon(GAC)Procurement. One bid was received on Friday, February 1, 2013, at 10:00 a.m. The single bid was submitted by Calgon Carbon Corporation. As you are aware, Calgon Carbon Corporation has held most of the contracts to provide GAC for the City of New Brighton since the plant was constructed. Calgon continues to be the only supplier that manufactures GAC from domestic coal sources and operates a regeneration facility licensed by the USEPA to handle GAC classified as hazardous. Bidding materials were held by one other GAC vendor, Siemens. While Siemens owns and operates a USEPA licensed regeneration facility, it does not manufacture or supply GAC produced domestically from domestic coal sources as required by the specifications. Siemens was not qualified to bid unless it partnered with a vendor that manufactures the specified GAC. As a result, Siemens declined to submit a bid for this project. Calgon Carbon Corporation's Estimated Contract Price to complete the work identified in the Contract Documents is $1,694,200.00. The prices on the bid form will be in effect for the first year of the three-year contract. The prices for the following years are escalated by the average of the monthly Producer Price Index over the previous year. Based on the current bid prices, the 2013 annual cost of the carbon contract will be approximately 0.2%higher than the 2012 annual cost for an equivalent amount of GAC. Barr has reviewed Calgon Carbon Corporation's bid package and there do not appear to be any irregularities and the bid appears sound. Consequently, Barr Engineering recommends that the contract for providing virgin GAC and removing the spent GAC from Water Treatment Plant 1 be awarded to Calgon Carbon Corporation. Please feel free to call me with any questions or comments regarding Calgon Carbon Corporation's bid or on any other portion of this project. Respectfully yours, &wu31. 6L4) Anne M. Phares, P.E.