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SR 06-12-2018 3D City Council Report City Council Meeting: June 12, 2018 Agenda Item: 3.D 1 of 3 To: Mayor and City Council From: Susan Cline, Director, Public Works, Water Resources Subject: Purchase of Sodium Fluoride for Water Treatment Recommended Action Staff recommends that the City Council authorize the Purchasing Services Manager to issue a purchase order with Westco Chemicals, a California-based company, for sodium fluoride. This recommended award is made as an exception to the competitive bidding process pursuant to Section 2.24.080(d) and is for a total amount not to exceed $250,000 with future year funding contingent on Council budget approval. Executive Summary The City’s Arcadia Water Plant produces and treats potable water for use by Santa Monica residential, commercial and institutional customers. To continue to provide safe and reliable water to the community without interruption, staff recommends issuing a purchase order with Westco Chemicals in an amount not to exceed $250,000 over a five-year period for the provision of sodium fluoride for potable water treatment purposes. Background The City of Santa Monica Arcadia Water Treatment Plant and all other water utilities in the country are required by state and federal law to add fluoride, certified and approved by the National Sanitation Foundation (NSF), to the drinking water to help prevent dental decay in consumers. Current regulations require fluoride levels in the treated water be maintained between 0.6 to 1.2 parts per million (ppm) with an optimum dose of 0.7 ppm. The City’s water averages 0.78 ppm throughout the entire syst em. In accordance with the American Dental Association and Centers for Disease Control, it is safe to use optimally fluoridated water. 2 of 3 Westco Chemicals has satisfactorily supplied the City with sodium fluoride since 2001. Procurement for sodium fluoride prior to now was completed using the informal bids process, under the $175,000 City Manager Authority, and no Council action was required. Discussion Since 2011, when the Arcadia Water Treatment Plant began producing water after its modifications and upgrades, Westco Chemicals has been the only bidder capable of furnishing a product that meets the City's specifications. Sodium fluoride is typically packaged in 2,000-lb super-sack bags, but due to the design of the fluoridation system and the limited building footprint where the fluoridation system is located, the Arcadia Water Treatment Plant fluoridation system can only accommodate 1,000-lb super-sack bags. Westco Chemicals is the only bidder able to supply sodium fluoride in the required 1,000-lb super sacks. Vendor Selection Staff recommends Westco Chemicals to furnish and deliver sodium fluoride as an exception to the competitive process. Staff has put this commodity up for bid three times in past years on May 23, 2012; May 1, 2013; and May 1, 2014. Westco Chemicals, the current local supplier, was the sole responsive bidder. Several vendors who submitted bids were unable to provide the City with sodium fluoride in the required 1,000 -lb super- sack bags. The past bids were awarded to Westco Chemicals in 2012, 2013 and 2014. The City Manager approved an exception to competitive bidding in 2015, and a purchase order for an amount not to exceed $175,000 was issued to Westco Chemicals for a three-year term between 2015 and 2018. Staff researched and found no other local vendors that can meet the City’s 1,000-lb. super-sack bag requirement. Westco Chemicals is the only local supplier possessing the ability to meet the City’s requirements and has proven to be dependable. Therefore, an exception to the competitive bidding process, pursuant to Section 2.24.080 (d), is requested for Westco Chemicals to furnish the City with sodium fluoride. Financial Impacts and Budget Actions 3 of 3 The purchase order to be awarded to Westco Chemicals is for an amount not to exceed $250,000. Funds of $50,000 are available in the proposed FY 2018-19 budget in the Public Works Department. The purchase order will be charged to account 25673.544011 / 50500003-525081. Future year funding is contingent on Council budget approval. Prepared By: Geohvanny Herrera, Water Production and Treatment Administrator Approved Forwarded to Council Attachments: A. Oaks Initiative Disclosure Form - Westco Chemicals Please attach additional pages if more space is required.  CITY OF SANTA MONICA OAKS INITIATIVE NOTICE NOTICE TO APPLICANTS, BIDDERS, PROPOSERS AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS, OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA Santa Monica’s voters adopted a City Charter amendment commonly known as the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and information about the Initiative’s requirements. You may obtain a full copy of the Initiative’s text from the City Clerk. This information is required by City Charter Article XXII—Taxpayer Protection. It prohibits a public official from receiving, and a person or entity from conferring, specified personal benefits or campaign advantages from a person or entity after the official votes, or otherwise takes official action, to award a “public benefit” to that person or entity. The prohibition applies within and outside of the geographical boundaries of Santa Monica. All persons or entities applying or receiving public benefits from the City of Santa Monica shall provide the names of trustees, directors, partners, and officers, and names of persons with more than a 10% equity, participation or revenue interest. An exception exists for persons serving in those capacities as volunteers, without compensation, for organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the Internal Revenue Code. However, this exception does not apply if the organization is a political committee or controls political committees. Examples of a “public benefit” include public contracts to provide goods or services worth more than $25,000 or a land use approval worth more than $25,000 over a 12-month period. In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Therefore, if you are seeking a “public benefit” covered by the Oaks Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This information must be updated and supplied every 12 months. Please attach additional pages if more space is required.  CITY OF SANTA MONICA OAKS INITIATIVE DISCLOSURE FORM In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Public benefits include: 1.Personal services contracts in excess of $25,000 over any 12-month period; 2.Sale of material, equipment or supplies to the City in excess of $25,000 over a 12-month period; 3.Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12- month period; 4.Non-competitive franchise awards with gross revenue of $50,000 or more in any 12-month period; 5. Land use variance, special use permit, or other exception to an established land use plan, where the decision has a value in excess of $25,000; 6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12-month period; or 7.Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12-month period. Name(s) of persons or entities receiving public benefit: Name(s) of trustees, directors, partners, and officers: Name(s) of persons with more than a 10% equity, participation, or revenue interest: Prepared by: ____________________________Title: __________________________ Signature: ______________________________________ Date: ________________ Email: ____________________________________ Phone: ____________________ Alan Zwillinger Steve Zwillinger Alan Zwillinger Steve Zwillinger Vice President April 18, 2018 szwillinger@westcochemicals.com 818.255.3655 Westco Chemicals