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Or Report Number 14 -070 the city that works for you Agenda Section VI -7 Council Meeting Date April 8, 2014 REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: CONSIDERATION OF CHANGE ORDER 1 FOR CITY PROJECT 13- 4, GRANULAR ACTIVATED CARBON TREATMENT PLANT #1 DEPARTMENT HEAD'S APPROVAL: CITY MANAGER'S APPROVAL:. No comments to supplement this report (.a 4%J (GAC) PROCUREMENT FOR WATER Comments attached Recommendation: Approve Change Order 1 to the contract for City Project 13 -4, Granular Activated Carbon (GAC) procurement for the following: A. Project Cost - The contract is a multiyear contract and the contract states that unit prices shall be adjusted each anniversary based on the Producer Price Index of Industrial Commodities. The result of this adjustment is an increase to the contract of $1,776. B. Contract Language — The language has been adjusted to include MN State Statute 471.425, regarding prompt payment. Legislative History: The GAC procurement contract was awarded on February 12, 2013 to Calgon Carbon Corporation in the amount of $1,694,200. Financial Impact: City Project 13 -4 is a three year procurement contract for removal and regeneration of spent GAC and the furnishing and installing of new virgin GAC in the treatment plant contactors. The bid is based on unit prices of truck loads of used GAC removed and new virgin GAC installed. GAC removal and replacement is a regular component of the operation and maintenance of Water Treatment Plant #1 and is programmed into Water Treatment Plant #1 Operating Budget. The original contract is $1,694,200 for three years, and the contract unit price is adjusted annually as designated in the Producer Price Index of Industrial Commodities. The adjustment for 2014 is $1,776, as indicated in Change Order 1. Explanation: GAC is the product used at Water Treatment Plant #1 to remove the chemical solvents from the raw ground water. Ground water is pumped through large contactor vessels contain the GAC. The Chemical solvents are adsorbed onto the GAC and removed from the water. The spent GAC is removed and replaced with new virgin GAC every six months. Minnesota State Statute 471.425 has specific payment language regarding the payment of subcontractors. The contractor did not originally plan on using a subcontractor. However, they have employed the services of another company for the hauling /trucking portion of the contract. Change Order 1 includes updated contractor obligations for prompt subcontractor payments to comply with the State Statute. Costs and Funding: All cost of the GAC is paid for by the Army from Fund 206, the 20 year Operation and Maintenance fund. Gran 0. W els, P. Director of Public Works Attachments: Change Order 1