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SR-10-13-2015-3J City Council Report City Council Regular Meeting: October 13, 2015 Agenda Item: 3.J 1 of 3 To: Mayor and City Council From: Martin Pastucha, Director, Public Works, Water Resources Subject: Purchase of Reverse Osmosis Antiscalant Chemicals Recommended Action Staff recommends that the City Council: 1. Award Bid #4214 to King Lee Technologies, a California-based company, for the purchase and delivery of Reverse Osmosis Antiscalant Chemicals; 2. Authorize the Purchasing Services Manager to issue a purchase order with King Lee Technologies for Reverse Osmosis Antiscalant Chemicals in the amount not to exceed $185,000 for one year, with two additional one-year renewal options to extend on the same price, terms and conditions for a total amount not to exceed cost of $555,000, with future year funding contingent on Council budget approval. Executive Summary The Reverse Osmosis filtration system at the City’s main water treatment facility is a critical component of the City’s domestic water supply. In order to prevent mineral and scale build up on the surface of the membranes as required to insure optimal system performance, continuous treatment with Reverse Osmosis antiscalant chemicals is needed. Reverse Osmosis antiscalant trials were conducted by staff in FY 2011 -12 in order to determine acceptable dosage and pH levels needed to achieve satisfactory performance. In August 2015, the City solicited bids for Reverse Osmosis antiscalant chemicals. After evaluating the bids received based on dosage/pH combinations trialed, staff recommends King Lee Technologies as the best bidder to supply antiscalant chemicals for an amount not to exceed $185,000 for one year, for a total amount not to exceed $555,000 over a three -year period. Discussion Scaling and fouling of Reverse Osmosis membranes is a limiting factor in the amount of ground water that can be recovered during treatment and the expected service life of the membranes is reduced if scaling and fouling is not properly controlled. The use of a Reverse Osmosis antiscalant is the accepted method of controlling scaling and fouling. Because every water source differs in mineral content and physical characteristics, 2 of 3 there is no exact method to determine the optimum product, dosage and pH combination that would work best for a given water source. For this reason, antiscalant trials were conducted by staff which resulted in a number of product dosage and pH combinations that demonstrated the ability to limit scaling to an acceptable level. Vendor Selection On August 6, 2015, the City published Notices Inviting Bids to furnish and deliver Reverse Osmosis Antiscalant Chemicals as required by the Water Resources Division responsible for the production of potable water in accordance with City specifications. The bid was posted on the City's on-line bidding site, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. A total of 465 vendors were notified and 14 vendors downloaded the bid. Three bids were received and publicly opened on August 25, 2015 per Attachment A. Bids were evaluated based on the criteria in SMMC 2.24.072, including price, previous experience, ability to deliver, quality of product, and compliance with City specifications. Procurement conducted additional outreach to vendors who downloaded the bid to see why they did not submit a bid; two no bids were received noting unable to provide the product. Of the three bids received, King Lee Technologies was found to be effective in controlling scaling at the lowest cost. King Lee Technologies is recommended as the best bidder for the purchase of Reverse Osmosis Antiscalant for a total amount not to exceed $555,000 over a three-year period. A protest was received on September 17, 2015 from ChemTreat. The protest indicated that the recommended bid was a less efficient product and wou ld require additional cleanings and result in additional costs from staff time. In 2011, staff completed a product trial to certify acceptable products and their effective dosage. Both King Lee’s Y2k product and ChemTreat’s RL9007 & RL9009 products received passing grades and were deemed acceptable among four other antiscalants for use. A response was prepared and submitted to ChemTreat outlining the additional costs from potential additional cleanings. Total costs for King Lee’s Y2k product remained less than ChemTreat’s RL9007 & RL9009 products. ChemTreat accepted the evaluation as valid. 3 of 3 Financial Impacts and Budget Actions The purchase order to be awarded to King Lee Technologies is for an amount not to exceed $555,000 over a three-year period. Funds in the amount of $185,000 are available in the FY 2015-16 budget in the Public Works Department. The purchase order will be charged to account 25673.544011. Future year funding is contingent on Council budget approval. Prepared By: Myriam Cardenas, Water Production & Treatment Administrator Approved Forwarded to Council Attachments: A. Bid Results # 4214 Reverse Osmosis Antiscalant Chemicals ATTACHMENT A BID RESULTS:# 4214 Antiscalant BID CLOSE DATE: TITLE:Furnish & Deliver Reverse Osmosis Antiscalant Chemicals Required by the Water Trea NET 30 Glen Allen, VA ChemTreat Delivery Compliance  within 7 days:Yes gal AS needed to treat 1  mgal Cost per gal AS 9.14$            20.11$          Additional Cost to treat 1  mgal water w/ acid 1.46$            21.57$          King Lee Y2k Period 2 (FY 17/18): Same price, terms, and  conditions offered Same price, terms, and  conditions offered Same price, terms, and  conditions offered Same price, terms, and  conditions offered None NET 30 Yes Chemtreat RL 9009 5.00 16.43$          Renewal Options Period 1 (FY 16/17): Payment Terms: None Completed Completed Submitted N/A Completed Completed Completed Completed N/A Completed City Documents Addendum #1 Arizona Disclosure Oaks Initiative Living Wage Non Collusion: 8/25/2015 Purchasing Section 1717 Fourth Street, Suite 250 Santa Monica, CA 90401 Telephone: (310)458‐8281 Fax: (310)393‐6142 Pricing Product Name: 82.15$          1.46$            83.61$          King Lee Technologies San Diego, CA Total Cost to treat 1 mgal  water 2.20 Cost to treat 1 mgal water  W/AS Additional Fees &  Charges: Yes NET 30 None ChemTreat ‐ Alternante  Proposal Glen Allen, VA Chemtreat RL 9007 2.50 12.69$          31.73$          64.24$          95.97$          Completed Completed Submitted N/A Completed Same price, terms, and  conditions offered Same price, terms, and  conditions offered atment Plant