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SR 10-15-2019 3A City Council Report City Council Meeting: October 15, 2019 Agenda Item: 3.A 1 of 6 To: Mayor and City Council From: Susan Cline, Director, Public Works, Water Resources Subject: Award Bid and enter into agreements with Weck Laboratories, Inc. and Eurofins Eaton Analytical, LLC for Water Quality Laboratory Analysis Recommended Action Staff recommends that the City Council: 1. Award Bid #4391 to Weck Laboratories, Inc. and Eurofins Eaton Analytical, LLC, both California-based companies, for laboratory analysis of drinking water, wastewater, stormwater, groundwater and urban runoff for the Public Works Department; 2. Authorize the City Manager to negotiate and execute an agreement with Weck Laboratories, Inc. in an amount not to exceed $465,000 for one year, with four additional one-year renewal options in the amount of $465,000 each year, for a total amount not to exceed $2,325,000 over a five-year period, with future year funding contingent on Council budget approval; and 3. Authorize the City Manager to negotiate and execute an agreement with Eurofins Eaton Analytical, Inc. in an amount not to exceed $200,000 for one year, with four additional one-year renewal options in the amount of $200,000 each year, for a total amount not to exceed $1,000,000 over a five-year period, with future year funding contingent on Council budget approval. Summary The Water Resources Division is responsible for providing a safe, sustainable water supply to Santa Monica’s 93,000 residents and 2,741 commercial and institutional customers. The Council recently adopted the Sustainable Water Master Plan, which will lead to the establishment of a diverse and drought-resilient local water supply and long- term cost benefits for ratepayers. The plan outlines several infrastructure projects that will enable the City to achieve water self -sufficiency by 2023, including the Sustainable Water Infrastructure Project (SWIP) and the Arcadia Water Treatment Plant Expansion Project. Development, implementation, and operation of these water self -sufficiency projects necessitate procuring contractors to perform specialized laboratory services to supplement the water quality testing conducted by staff at the City’s drinking water 2 of 6 laboratory. The City does not possess the equipment and capabilities to perform the specialized laboratory work, which is required by state regulatory agencies for the City to obtain operating permits for the planned water self-sufficiency projects as well as maintain current operations. Staff recommends awarding contracts to Weck Laboratories Inc. and Eurofins Eaton Analytical, LLC to provide these services. The recommended award also includes laboratory work for recently adopted and upcoming Federal and State drinking water quality requirements to ensure safe drinking water and to support ongoing work in the Water Resources Protection Programs (WRPPs). Discussion The development, implementation, and operation of the City’s water self -sufficiency projects requires hiring contractors to perform specialized laboratory services (e.g., analysis of new emerging contaminants or alternative water sources such as stormwater) to supplement the City’s internal drinking water laboratory functions (analysis of current, established regulated drinking water constituents). The contractor would conduct specialized laboratory analysis of source water (wastewater, stormwater, groundwater, and urban runoff) and final treated water once the project is completed via a comprehensive testing program directed by regulatory agencies such as the Los Angeles Regional Water Quality Control Board and the Division of Drinking Water. The specialized laboratory services that would be provided by the contractor include the following: 1. Analyze water quality from the SWIP: This includes testing the quality of the water emanating from the Clean Beaches tank, Santa Monica Urban Runoff Recycling Facility (SMURRF) and the new SWIP advanced water treatment facility, which is required for regulatory permitting. In addition, after the construction of the SWIP is completed, testing the quality of the SWIP’s treated water as well as selected monitoring at customer locations will be required. 2. Ensure Federal and State water quality requirements are met to ensure safe drinking water: This includes water quality samples collected at the City’s Arcadia Water Treatment Plant, groundwater production wells, and the water distribution 3 of 6 system. City staff performs a majority of the drinking water laboratory work. However, recent State regulations require the analysis of additional parameters such as 1,2,3,-Trichloropropane (123 TCP) and Per- and Polyfluoroalkyl Substances (PFAS). The City does not possess the appropriate certifications and laboratory equipment to perform these required analyses. 3. Support the City’s WRPPs: This includes ensuring facilities permitted by the City’s industrial waste pre-treatment program are in compliance with federal and local wastewater discharge requirements, ensuring City facilities permitted by the State’s Industrial General Permit Program are in compliance with stormwater requirements, and collecting required water quality samples at the SMURRF on a weekly basis. • Previous laboratory analysis contract services for wastewater, stormwater, water at the Clean Beaches tank, and the water produced at SMURRF were awarded by Council on November 14, 2017, for a five-year duration aimed originally to support the City’s WRPP. However, to support ongoing development of water self-sufficiency projects, this original contract and the approved budget have been exhausted due to increased laboratory requirements required by permitting conditions established by the State regulatory agencies. Because laboratory analysis may sometimes be delayed due to extenuating circumstances such as laboratory instruments being repaired or a high volume of samples requiring analysis, staff selected two vendors to provide flexibility and to help ensure timely reporting of water quality results. The cost submittals received and summarized below from each vendor is the sum of the unit cost for all specialized water quality analysis required by the City. The recommended budget a ctions are based on estimated water quality analysis requirements to support various programs including drinking water, recycled water, storm water, and industrial pretreatment programs. Vendor Selection Bidder Recommendation 4 of 6 Best Bidders Weck Laboratories, Inc. and Eurofins Eaton Analytical, LLC Evaluation Criteria Price; the quality of the material or services offered; the ability, capacity and skill of the bidder to provide the services; the capacity of the bidder to perform the contract or provide the service promptly, within the time specified, and without delay or interference; judgment, training, experience and efficiency of the bidder; the ability of the bidder. Municipal Code SMMC 2.24.180 Financial Impacts and Budget Actions Staff seeks authority to approve funding from the Water and Wastewater Funds to award contracts with Weck Laboratories, Inc. and Eurofins Eaton Analytical, LLC for water quality laboratory analyses. The water quality analysis and frequency required for each water self-sufficiency project are established by State regulators and consistent for all water/wastewater utilities in California on similar projects. In other words, the cost would be similar for other agencies that are implementing similar projects as the City. Source water characterization/compliance monitoring for the SWIP accounts for Submittals Received (Total of Unit Costs for All Water Quality Parameters Required) Weck Laboratories, Inc $4,331.00 BC Laboratories $6,515.50 Eurofins Eaton Analytical, LLC $5,290.00 Bid Data Date Posted Posted On Advertise In (City Charter & SMMC) Vendors Downloaded Date Publicly Opened 06/26/2019 City's Online Bidding Site Santa Monica Daily Press 34 07/26/2019 Best Bidder Justification Weck Laboratories Inc. and Eurofins Eaton Analytical, LLC met all of the evaluation criteria. Both Weck Laboratories Inc. and Eurofins Eaton Analytical, LL C currently perform laboratory analysis for the City and are located in Southern California. Staff selected Weck Laboratories Inc. and Eurofins Eaton Analytical, LLC based on their previous experience, ability to deliver, cost, and compliance with City spe cifications. 5 of 6 approximately 65 percent of the total cost; approximately 15 percent of the cost is to support ongoing water treatment operations; and the remaining 20 percent of the cost is to support production efficiency enhancement at the Arcadia Water Treatment Plant and restore the Olympic Well Field. The water quality analysis requirements for SWIP were identified about one year ago, and an existing laboratory services contract was utilized to perform the analysis so the SWIP would stay on schedule. The existing laboratory services contract was awarded before the SWIP water quality requirements were established by the State regulators and is close to being exhausted. The budget requests summarized in the two tables below are forecasted over the next five years to supplement current water treatment operations and development of water self - sufficiency projects, including continued support of the SWIP. Agreement Request – Weck Laboratories, Inc. Request Amount FY 2019-20 Budget Department/CIP Account # Total Contract Amount (Five Years) $300,000 C5106950. 689310 $1,500,000 $65,000 51500001. 552010 $325,000 $50,000 C5005880.689410 $250,000 $50,000 50500001.550010 $250,000 $465,000 Total $2,325,000 Agreement Request – Eurofins Eaton Analytical, LLC Request Amount FY 2019-20 Budget Department/CIP Account # Total Contract Amount (Five Years) $50,000 C5106950. 689310 $250,000 $50,000 51500001. 552010 $250,000 $50,000 C5005880.689410 $250,000 $50,000 50500001.550010 $250,000 $200,000 Total $1,000,000 Future year funding is contingent on Council budget approval. 6 of 6 Prepared By: Sunny Wang, Principal Civil Engineer Approved Forwarded to Council Attachments: A. Weck Laboratories, Inc. Oaks Initiative Disclosure Form B. Eurofins Eaton Analytical, LLC Oaks Initiative Disclosure Form 11 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: ____________________ FOR CITY USE ONLY: Bid/PO/Contract # ____________________________ Permit # ___________________________ Weck Laboratories, Inc. Alfredo Pierri, President Cecilia Pierri, Secretary Alfredo Pierri, President Cecilia Pierri, Secretary Leo Raab Director of Business Development leo.raab@wecklabs.com 9-12-2019 626-336-2139 REFERENCE: Contract No. 10944 (CCS) & Contract No. 10945 (CCS)