STAFF REPORT

To: Works Committee

From: Barry H. Gutteridge, Commissioner, Works and Emergency Services

W. A. Liczyk, Chief Financial Officer and Treasurer

Subject:Quotation for the Supply and Installation of Granular Activated Carbon at the R.C. Harris Filtration Plant

Purpose:

The purpose of this report is to advise of the results of the Request for Quotation for the supply and installation of Granular Activated Carbon (GAC) at the R.C. Harris Filtration Plant, for controlling taste and odour in treated drinking water, in accordance with specifications as required by the Department of Works and Emergency Services and to request authority to issue a purchase order to the recommended bidder.

Source of Funds:

This project is included in the approved 1999 - 2003 Water and Wastewater Services Division Capital Works Program and has also been identified in the Preliminary 2000 - 2004 Capital Works Program. Funds in the amount of $2,694,058.64 including all taxes and charges have been provided for in the Water Supply, Capital Account - Plant Process Additions, Taste and Odour Control.

Recommendations:

It is recommended that subject to receipt of a Certificate of Approval for Water from the Ministry of Environment, the quotation submitted by Horseshoe Carbons Incorporated for Scenario B, Option 2C be accepted, to supply and install Granular Activated Carbon for 38 filters in the R.C. Harris Filtration Plant and to remove, bag and transport existing anthracite for storage at the F.J. Horgan Filtration Plant for controlling taste and odour in treated drinking water, in the total amount of $2,694,058.64, including all taxes and charges being the lowest quotation received.

Background:

Nine (9) firms were invited to submit quotations; two (2) bids were received as summarized below for the supply and installation of Granular Activated Carbon for 38 filters at the R.C. Harris Filtration Plant, for controlling taste and odour in treated drinking water.

Comments:

The following is a summary of prices for Quotation No. 3925-00-1040 for the supply and installation of Granular Activated carbon for 38 filters at the R.C. Harris Filtration Plant for controlling taste and odour in treated drinking water:

The work essentially involves the removal of existing anthracite filter media and installation of Granular Activated Carbon (GAC) in its place. An application was submitted to the Ministry of Environment for the Certificate of Approval in early February 2000. Based on discussions with Ministry staff, approval is anticipated within the next few weeks. This work is required to provide taste and odour control at the R.C. Harris Plant. Based on the schedule provided by the recommended bidder the installation of the GAC will be completed prior to the taste and odour season, normally in August and September.

The quotation required all bidders to submit prices for six (6) different options pertaining to the quantity of filters to be upgraded with Granular Activated Carbon and the disposal method of the existing anthracite filter material.

Both bidders took exceptions and/or had comments to the specifications.

The low bidder, Horseshoe Carbons Incorporated (Horseshoe), is offering the GAC media for the east and west filters from two suppliers in order to complete the installation prior to the taste and odour season. Horseshoe had exceptions/qualifications on some of the specified parameters for the GAC. The qualified parameters of the technical specifications for the granular activated carbon pertained to superficial velocity for effective backwashing for the east filter GAC, and a lower level of removal of methylisoborneol (MIB) for the west filter GAC during the specified warranty period of 36 months. Subsequently, Horseshoe has clarified, in writing, that the superficial velocity does and will meet the specified parameter. With respect to the issue of the MIB, one supplier of the GAC is providing a warranty for 90% removal versus the specified 93%. Based on historical levels of this compound, the Department is satisfied that this would be sufficient.

Horseshoe also qualified its acceptance of the specified method of testing service carbon for estimating the remaining taste and odour absorptive capacity to assess warranty compliance. As no formal testing program exists only one of the two GAC suppliers carried by Horseshoe has agreed, however this is acceptable, as the essential item is the 36 month warranty. In the absence of an acceptable industry norm for testing odour and taste removal performance and service life of GAC, Horseshoe, subsequently, confirmed, in writing, that they would agree with the City on a mutually acceptable testing protocol. In addition, Horseshoe submitted additional written information and clarification, which satisfies the Department that all requirements of the specifications have been met.

Representatives of the Works and Emergency Services Department have reviewed both quotations and have met with the lowest bidder and are satisfied that Horseshoe understands the contractual requirements and has the capability to carry out the work.

The Manager, Fair Wage and Labour Trades Office, has reported favourably on the firm recommended.

Conclusions:

This report requests authority to issue a purchase order for the supply and installation of Granular Activated Carbon for 38 filters in the R.C. Harris Filtration Plant and to remove, bag and transport existing anthracite for storage at the F.J. Horgan Filtration Plant, for controlling taste and odour in treated drinking water, to Horseshoe Carbons Incorporated, being the lowest quotation received.

 Contact:

M. Barbon, P.Eng.L.A. Pagano, P.Eng.

Senior Project EngineerDirector

Engineering Facilities - Works Facilities & StructuresPurchasing & Materials Management

Technical Services DivisionTel: (416) 392-7312

Tel: (416) 392-8854

Fax: (416) 392-4594

E-mail: MBarbon@city.toronto.on

  Tom G. Denes

Executive Director

Technical Services Division

     Barry GutteridgeW.A. Liczyk

CommissionerChief Financial Officerand Treasurer

Works and Emergency Services

MB/ph