SR 07-25-2017 3L
Ci ty Council
Report
City Council Meeting : July 25, 2017
Age nda Item: 3.L
1 of 6
To: Mayor and City Council
From: Susan Cline, Director , Public Works, Water Resources
Subject: Bid Award for the Purchase of Sodium Hypochlorite for Water Treatment
Recommended Action
Staff recommends that the City Council:
1. Award Bid #4289 to Olin Corpo ration, a California -based company, as the
primary vendor for the purchase of sodium hypochlorite for the Arcadia Water
Treatment Plant and Charnock Well Field site; JCI Jones Chemicals, Inc., a
California -based company, as the secondary vendor for the pur chase of sodium
hypochlorite for the Arcadia Water Treatment Plant and Charnock Well Field site;
and Waterline Technologies, a California -based company, for purchase of
sodium hypochlorite for the Santa Monica Urban Runoff Recycling Facility
(SMURRF);
2. Auth orize the Purchasing Services Manager to issue a purchase order with Olin
Corporation for sodium hypochlorite in the amount not to exceed $120,000 for
one year, with four additional one -y ear renewal options to extend at mutually
agreeable price adjustments ranging from -10% to +10%, for a total not to
exceed $600,000, with future year funding contingent on Council budget
approval;
3. Authorize the Purchasing Services Manager to issue a purchase order with JCI
Jones Chemicals, Inc. for sodium hypochlorite in th e amoun t not to exceed
$20,000 for one year , with four additional one -year renewal options to extend at
5% increases, for a total not to exceed $110,513 , with future funding contingent
on Council budget approval;
4. Authorize the Purchasing Services Manager to issue a purchase order with
Waterline Technologies for sodium hypochlorite in the amount not to exceed
$20,000 for one year, with four additional one -year renewal options to extend at
increases between 4% to 10%, for a total not to exceed $11 5 ,748 , with future
funding contin gent on Council budget approval.
Executive Summary
As part of a multi -stage treatment process to provide a safe and reliable supply of water,
the City uses sodium hypochlorite to disinfect potable water produced at the Arcadia
Water Treatment Plant and the Charnock Well Field site , and non -potable water used
for landscaping and other purposes at the Santa Monica Urban Runoff Recycling
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Facility (SMURRF). In May 2017, the City solicited bids for 5,000 -gallon tanker truck
deliveries of s odium hypochlorite solution for the Arcadia and Charnock site s , and
smaller 60 -gallon deliveries to the SMURRF. Five bids were received. Staff
recommends splitting the bid award to the lowest cost providers of sodium hypochlorite
for each site.
For the Arcadia and Charnock sites, Olin Corporation, the lowest bidde r, would be the
primary vendor in an amount not to exceed $600,000 over a five -year period. In order
to avoid production stoppages due to delivery issues from the primary vendor , JCI
Jones Chem icals, the second -lowest bidder, would be designated as the secondary
vendor in an amount not to exceed $110,513 over a five -year period. For the SMURRF,
Waterline Technologies, the lowest bidder, would supply sodium hypochlorite in an
amount not to exceed $11 5 ,748 over a five -year period.
Background
The City uses a multi -stage treatment process to produce approxima tely 8,600 acre -feet
of potable water per year at the Arcadia Water Treatment Plant and the Charnock Well
Field site located in West Los Angele s (1228 S. Bundy Drive and 11375 Westminster
Avenue, respectively); and up to 1 7 5 acre -feet of non -potable water per year at the
Santa Monica Urban Runoff Recycling Facility (SMURRF) located at 1625 Appian Way.
Water from these facilities is supplied to a pproximately 18,000 Santa Monica accounts
including 2 9 “purple pipe system” recycled water accounts used primarily for
landscaping and indoor non -potable purposes. In order to comply with Federal and
State regulations, 12% to 15% sodium hypochlorite (NaOCl ) solution is applied to local
groundwater and urban runoff as part of the disinfection process to kill harmful
pathogens. Sodium hypochlorite is used on a large scale for surface purification,
bleaching, odor removal and water disinfection.
The Arcadia Water Treatment Plant and Charnock Well Field site have historically
required 25 to 40 5,000 -gallon tanker truck deliveries of bulk sodium hypochlorite
solution per year. With the City’s commitment to becoming water self -sufficient by
2020, it is anticipa ted that increased production and treatment of local groundwater
3 of 6
would require additional water treatment chemicals in future years .
Due to the lack of on -site chemical storage at the SMURRF, tanker truck deliveries
cannot be accommodated. Instead, the C ity typically requires deliveries in 15 -gallon
carboy containers with four containers delivered 30 to 40 times per year. Due to the
smaller quantities and more frequent deliveries required, chemical vendors supplying
bulk products via tanker truck have his torically not been able to offer deliveries to this
site. Sodium hypochlorite demand is also expected to increase at SMURRF in future
years in concert with the City’s pl an to expand recycled water production. Key upcoming
projects include SMURRF reverse os mosis improvements as part of the City’s
Sustainable Water Infrastructure Project , expansion of the City’s purple pipe system by
1,000 feet per year , and construction of a 1.6 million gallon storage tank near the Santa
Monica Pier to supply storm water to the SMURRF as part of a Clean Beaches Initiative
project.
Discussion
In May 2017, the City issued a two -part bid seeking bulk tanker truck deliveries of
sodium hypochlorite solution for the Arcadia Water Plant and Charnock Well Field Site;
and smaller d eliveries of four 15 -gallon carboys at a time for the SMURRF. Bidders
were offered the opportunity to bid on one or both parts.
Due to the critical need for sodium hypochlorite at the Arcadia Water Plant and
Charnock Well Field site , staff anticipated selecting two or more providers for these
locations in order to ensure continuity of supply and avoid any potable water production
shutdowns which would necessitate importing water from Metropolitan Water District at
a cost of $979 per acre -foot.
Vendor S election
On May 23, 2017 , the City published Notices Inviting Bids to furnish and deliver sodium
hypochlorite to the Arcadia Water Plant, Charnock Well Field site and SMURRF in
accordance with City specifications. The bid was posted on the City's on -line b idding
site, and notices were advertised in the Santa Monica Daily Press in accordance with
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City Charter and Municipal Code provisions. A total of 19 vendors downloaded the bid.
Five bids were rece ived and publicly opened on June 5, 2017 , 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.
For provision of bulk 5,000 -gallon loads of sodium hypochlorite to the Ar cadia Water
Plant and Charnock Well Field site, Olin Corp oration offered the lowest pricing of $0.572
per gallon and JCI Jon es Chemicals offered the second -lowest pr icing of $0.60 per
gallon, which are both less expensive than the $0.629 per gallon charged by current
vendor Olin Corporation. Olin Corporation has supplied the City with sodium
hypochlorite satisfactorily for the past three years and JCI Jones Chemicals has
supplied the City satisfactorily with water treatment chemicals including sodium bisulf ite
since 2011. Due to the critical need for sodium hypochlorite solution for the production
and disinfection of potable water supplied to Santa Monica customers in compliance
with Federal and State water treatment regulations, staff recommends awarding t his
portion of the bid to two vendors to ensure continuity of supply. Based on these criteria,
Olin Corporation, the lowest bidder, is recommended as the best bidder and primary
supplier of sodium hypochlorite to the Arcadia Water Plant and Charnock Well Field
sit e . JCI Jones Chemicals, the second lowest bidder, is recommended as the secondary
supplier of sodium hypochlorite to these locations .
Should Olin Corporation not be able to supply the Arcadia Water Plant or Charnock Well
Field site with sodium hypochlorite in the timeframe or amounts required by the City,
orders would be placed with JCI Jones until Olin Corporation could supply t he
necessary quant it i es. Olin Corpo ration has offered renewal year options with price
adjustments ranging from +10% t o -10% mutually agreed to with the City. Over five
years, it is anticipated that the amount purchased would not exceed $600,000.
Secondary vendor JCI Jones Chem icals, has offered renewal year options with 5%
annual price increases. Over five years, it i s anticipated that the amount purchased
would not exceed $110,513 .
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For provision of 15 -gallon carboy containers of sodium hypochlorite to the SMURRF,
Waterline Technologies offered the lowest pricing of $2.48 per gallon. Waterline
Technologies has sati sfactorily supplied the City with sodium hypochlorite since 2008.
Based on these criteria, Waterline Technologies , the lowest bidder, is recommended as
the best bidder to supply sodium hypochlorite to the SMURRF. Waterline Technologies
has offered renewa l year options at annual price increases ranging from 4% to 10%
annually. Over five years, it is anticipated that the amount purchased would not exceed
$11 5 ,748 .
Financial Impacts and Budget Actions
The purchase order to be awarded to Olin Corporation is for an amount not to exceed
$120,000 . The purchase order to be awarded to JCI Jones Chemicals is for an amount
not to exceed $20,000. The purchase order to be awarded to Waterline Technologies is
for an amount not to exceed $20,000. Funds are available in the FY 20 17 -18 budget in
the Public Works Department. The purchase order s will be charged to the following
accounts:
Olin Corporation 25672.544011 $5 0,000
25673.544011 $7 0,000
Total: $120,000
JCI Jones Chemicals 25672.544011 $8,000
25673.54 4011 $12,000
Total: $20,000
Waterline Technologies 31661.566631 $20,000
Future year funding is contingent on Council budget approval.
6 of 6
Prepared By: Kevin Nagata, Senior Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. Bid Results - F4289 Sodium Hypochlorite
B. Oaks Initiative Disclosure Form - Olin Corporation
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