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SR-6T (2) (P-T EPWM CP AA TJ s \sp1320\desrgn\cc1320C3 wpd Council Meeting June 23. 1998 JUN 231198 Santa MOnica, California TO Mayor and City Council FROM City Staff SUBJECT Recommendation to Waive CompetitIve Bidding Requirements and AuthOrize the CIty Managerto Negotiate and Execute a PnceAgreement for Zenon MUnicipal Systems' Mlcroflltratlon Unit and Trojan Technologies' Ultraviolet DIsinfection Unit to be Used In the Dry Weather Runoff Reclamation FaCIlity I ntrod uctlon This report recommends that the City Council waive competitIve bldd Ing requirements and authOrize the City Manager to negotiate and execute a written price agreement for a Zenon Municipal Systems' mlcroflltratlon umt and a TroJan Technologies' ultravIolet diSinfection umt to be used In the future construction contract for the Dry Weather Runoff Reclamation FaCility Sackground Since 1987. the City has conducted several feaSibility studies on constructing a faCIlity for the treatment of dry weather flows from the Plco-Kenter and Santa Monica Pier storm drams Dry weather runoff caused by Irrigation, spills, and washing down of paved areas carnes With It suffICient run-off pollution (011 and grease, heavy metals, pathogens) to warrant the construction of a permanent dry weather runoff reclamation faCIlity (DWRRF) The design of the proposed faCIlity IS nearing completion and the estimated construction cost IS S7,000,000 1 ~-T JUN 2 3 IJ98 The primary function of the proposed faCIlity will be to treat and reuse the treated water from the Plco-Kenter and Santa MOnica Pier storm drams for Irrigation As a state-of-the- art faCIlity, It Will proVide environmental, educational. and health benefits The treatment faCility Will filter and diSinfect the storm drain water so that It may be reused for various applications including Irrigation Irrigation sites Will mclude Woodlawn Cemetery, Caltrans for the Santa MOnica Freeway landscaping, the OlympiC Boulevard median, Memorial Park. the CIVIC Center, and Palisades Park The proposed location for the faCIlity IS adjacent to the Moss Avenue Sewage Pumping Station located at Appian Way and Moss Avenue Just south of the Pier Bridge The faCIlity Will Include a vIsitors' center and educatIonal exhibits to raise awareness of runoff pollution and present options by which thiS pollution can be reduced The high VISibility ofthe faCIlity underscores the Importance of ItS aesthetiC characteristics Therefore, an artist IS mcluded on the design team It IS anticipated that construction bids Will be soliCited In the summer of thiS year and a recommendatIon for award of a construction contract Will be brought to Councl]In the fall In the near future. staff will present the design of the faCility to the City Council for approval The faCIlity construction costs are offset by approximately $1,000,000 In FederallSTEA grant funds and $1,000,000 of Los Angeles County PropOSition A grant funds The balance of construction funding IS from low Interest state loans from the State RevolVing Fund (SRF) On May 27, 1998, the State Water Resources Control Board adopted a resolution awarding the City a loan In the amount of $5,000,000 The loan has a 20-year term at a 2 5 annual percentage rate Recently, staff and Board of PubliC Works Members from the City of Los Angeles committed to becoming a full partner In the const~uctlon and 2 operation of the DWRRF subject to final confirmation by the Los Angeles City Council Full partnership will mclude sharing the costs of operation and maintenance of the plant and repayment of the SRF loan The final terms of the agreement with Los Angeles are currently being negotiated Through a request for qualifications and request for proposal process, a design team Including CH2M HIli (an engineering firm) and Richard Turner (an artist) was selected to design the facIlity The design of the facIlity IS essentially complete and constructIOn of the facIlity may begin as early as the latter part of 1998 With plant start-up anticipated to occur twelve months follOWing the start of constructIon DISCUSSion Since the area of the proposed DWRFF site IS only approximately 11,400 square feet, space IS a major concern Additionally, the site IS located In an area where aesthetics are also a major concern These site constraints limit the type of treatment equipment that may be used Two pieces of equipment that satisfy these concerns are each manufactured by only one firm One IS a mlcroflltratlon unit manufactured by Zenon MUniCipal Systems and the other IS an ultraViolet diSinfectIon unit manufactured by Trojan Technologies The performance of each of these Units has been proven In industrial applIcatIons AddItionally. these are the only unrts In the Industry that have the approval of the California Department of Heath Services for use In a reclaimed storm water treatment plant The equipment also compliments the artistic and architectural themes of the project " j It IS not possible to competitively bid one-of-a-klnd Items when construction bid documents specrfy the use of a proprietary Item of original equipment The buyer, therefore, may not always receive a favorable price To ensure that thiS does not occur, staff IS requesting authonzatlon to negotiate a favorable price for these Items before the DWRRF bidding begins and secure the price With a wntten price agreement from the vendor Staff recommends that the City Council waive competitive bidding requirements, pursuant to Section 2 24 080 of the MUnicipal Code, and authOrize the City Manager to negotiate the price of Zenon MUnicipal Systems' mlcroflltratlon Unit and Trojan Technologies' ultraviolet diSinfection unit Staff Will then bid the DWRRF project and either assign the pnce agreement to the successful bidder as a component of the construction contract or require the successful bidder to assist the City With the delivery, installation and acceptance tests of the equipment The terms of the price agreement Will ensure that the City IS not obligated to purchase the equipment If the project IS not approved for construction by the City CounCil Budget/Flnanclallmpact There IS no budget or fmanclallmpact associated With the recommended actions In thiS staff report Actual payment for Zenon Municipal Systems' mlcroflltration Unit and TroJan Technology's ultraviolet dlsmfectlon Unit WIll be Included In the future construction project 4 Recommendation Staff recommends that the City Council waive competitive blddmg requirements, pursuant to Section 2 24 080 of the MUnicipal Code, and authorize the City Manager to negotiate and execute a written price agreement for Zenon MUnicipal Systems' mlcrofiltratlon Unit and TroJan Technology's ultravIOlet diSinfection umt Prepared by Craig Perkms, Director of Environmental & Pubhc Works Management Anthony Antlch, PE, City Engineer Timothy Joyce, PE, CIvil Engineer 5 YIlt ~ \,. ~