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SR 10-25-2022 5G City Council Report City Council Meeting: October 25, 2022 Agenda Item: 5.G 1 of 4 To: Mayor and City Council From: Rick Valte, Public Works Director, Public Works, Water Resources Subject: Award Bid #4430 to Pacific Star Chemical, Brenntag Pacific, Inc., and Univar Solutions USA for the Purchase of Sodium Hydroxide Recommended Action Staff recommends that the City Council: 1. Award Bid #4430 to Pacific Star Chemical dba Northstar Chemical as the primary vendor for the purchase of sodium hydroxide for the Arcadia Water Treatment Plant (Arcadia) and Brenntag Pacific, Inc. as the primary vendor for the purchase of sodium hydroxide for the Santa Monica Urban Runoff Recycling Facility (SMURRF); Univar Solutions USA Inc as the secondary vendor for the purchase of sodium hydroxide for the Arcadia Water Treatment Plant and SMURRF; 2. Authorize the Procurement Manager to issue a purchase order with Pacific Star Chemical dba Northstar Chemical for sodium hydroxide in the amount not to exceed $50,000 for one year, with four additional one-year renewal options to extend at a mutually agreeable price adjustment for a total not to exceed $290,000; and 3. Authorize the Procurement Manager to issue a purchase order with Brenntag Pacific, Inc. for sodium hydroxide in the amount not to exceed $35,000 for one year, with four additional one-year renewal options to extend at mutually agreeable price adjustment for a total not to exceed $200,000; and 4. Authorize the Procurement Manager to issue a purchase order with Univar Solutions USA Inc. for sodium hydroxide in the amount not to exceed $35,000 for one year, with four additional one-year renewal options at increases between 5% to 10% for a total not to exceed $200,000. Summary The City of Santa Monica, Department of Public Works – Water Resources Division operates a multi-barrier treatment process, through the Charnock Treatment Plant and Arcadia Water Treatment Plant to provide high-quality, safe and reliable supply of water. The treatment processes at the Arcadia Water Treatment Plant and upgraded Santa 5.G Packet Pg. 388 2 of 4 Monica Urban Runoff Recycling Facility (SMURRF) use sodium hydroxide (or caustic) to support the treatment processes at both facilities. Staff recommends Pacific Star Chemical dba Northstar Chemical as the primary vendor to provide the sodium hydroxide for the Arcadia Water Treatment Plant in an amount not to exceed $290,000 over a five-year period. Brenntag Pacific, Inc. is recommended as the primary vendor to provide sodium hydroxide for SMURRF in an amount not to exceed $200,000 over a five-year period. Staff also recommends Univar Solutions USA Inc. as a secondary vendor for Arcadia & SMURRF in an amount not to exceed $200,000 over a five-year period. The COVID-19 pandemic has impacted the vendor’s ability to maintain consistent deliveries of chemicals for continuous operations at the City’s water treatment facilities and secondary vendors to both locations would serve as back-up options should the primary vendor’s supply be interrupted by material or labor shortages. Discussion The City uses a multi-barrier treatment process at the Arcadia Water Treatment Plant to produce high-qualify and safe drinking water for the City’s customers. Sodium hydroxide (purchased as 50% solution of NaOH) is used at the Arcadia Water Treatment Plant to ensure the City’s drinking water meets or exceeds all federal and state regulations for drinking water. The treatment processes at the Arcadia Water Treatment Plant consist of greensand filtration, reverse osmosis filtration, decarbonation towers (air stripping), and chlorine disinfection. Sodium hydroxide is used at the Arcadia Water Treatment Plant to adjust the pH, to reduce the potential of corrosion in the distribution system, of the final treated water before it is distributed for use as drinking water. It is estimated that the Arcadia Water Treatment Plant will receive approximately 6 deliveries, at 5,000 gallons per delivery, of sodium hydroxide each year. Once the Arcadia Water Treatment Plant expansion is completed at the end of 2023, it may receive up to 11-12 deliveries, at 5,000 gallons per delivery, of sodium hydroxide each year. 5.G Packet Pg. 389 3 of 4 Sodium hydroxide is used at the SMURRF to adjust the pH and reduce the potential of corrosion in the expanded recycled water distribution system required with the new upgrades to SMURRF as part of the Sustainable Water Infrastructure Project. It is estimated that the SMURRF would receive approximately 10-15 deliveries, at 300 gallons per delivery, of sodium hydroxide each year. Vendor Selection Bidder Recommendation Best Bidder Pacific Star Chemical dba Northstar Chemical & Brenntag Pacific, Inc. Evaluation Criteria Price; the ability, capacity and skill of the bidder to perform or provide the materials or services; the capacity of the bidder to perform the contract or provide the service promptly, within the time specified, and without delay or interference; the sufficiency of the bidder’s financial resources; The City is not required to select the bid with the lowest price. Municipal Code SMMC 2.24.180 Bid Data Date Posted Posted On Advertise In (City Charter & SMMC) Vendors Downloaded Date Publicly Opened 08/15/2022 City's Online Bidding Site Santa Monica Daily Press 11 09/12/2022 Best Bidder Justification Pacific Star Chemical dba Northstar Chemical and Brenntag Pacific, Inc. were chosen as the best bidder for Arcadia Water Treatment Plant and SMURRF respectively, based on price and the ability to provide the chemical to both locations requested. Supply chain issues still affect availability of chemicals and has on occasion in the past few years made it difficult for chemical vendors to source the chemical ordered. Therefore, Univar Solutions USA Inc. has been selected as backup vendors to Arcadia and SMURRF, in the event Pacific Star Chemical and/or Brenntag Pacific, Inc is unable to source the chemical for fulfillment. Financial Impacts and Budget Actions Staff seeks authority to approve available funding from the Water and Wastewater Funds to award purchase orders with Pacific Star Chemical dba Northstar Chemical and Submittals Received JCI Jones Chemicals $3.64/gal Arcadia Pacific Star Chemical dba Northstar Chemical $2.50/gal Arcadia Brenntag Pacific, Inc. $3.25/gal $5.25/gal Arcadia SMURRF Univar Solutions USA Inc. $3.23/gal $7.49/gal Arcadia SMURRF 5.G Packet Pg. 390 4 of 4 Brenntag as the primary vendor to provide Sodium Hydroxide and a purchase order to Univar Solutions USA Inc. as a secondary vendor in the event Pacific Star Chemical or Brenntag is unable to fulfill the order for Arcadia and SMURRF respectively. Future year funding is contingent on Council budget approval. Pacific Star Chemical dba Northstar Chemical Purchase Order Request Arcadia (Primary Vendor) FY 2022-23 Amount Future Years Amount Department Account # Total Contract Amount $50,000 $240,000 50500003.525081 $290,000 Brenntag Pacific Inc. Purchase Order Request SMURRF (Primary Vendor) FY 2022-23 Amount Future Years Amount Department Account # Total Contract Amount $35,000 $165,000 51500001.529450 $200,000 Univar Solutions USA Inc. Purchase Order Request SMURRF (Secondary Vendor) & Arcadia (Secondary Vendor) FY 2022-23 Amount Future Years Amount Department Account # Total Contract Amount $15,000 $70,000 50500003.525081 $85,000 $20,000 $95,000 51500001.529450 $115,000 Total $200,000 Prepared By: Thomas Poon, Senior Administrative Analyst Approved Forwarded to Council Attachments: A. Oaks Initiative (Northstar Chemical a dba of Pacific Star Chemcial) B. Oaks Initiative (Brenntag) C. Oaks Initiative (Univar) 5.G Packet Pg. 391 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 # ___________________________ _______________________ _____________________________________________________________________________________________________________________ Matt Werger Vice President/General Manager 9/6/2022 bidsca@northstarchemical.com (503)625-3770 Northstar Cehimcial a DBA of Pacific Star Chemcial Matthew J Werger Stan Chang None 5.G.a Packet Pg. 392 Attachment: Oaks Initiative (Northstar Chemical a dba of Pacific Star Chemcial) (5328 : Sodium Hydroxide) 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 # ___________________________ y ______________ ______________________________________________________________________________________________________________________________________________________________________ Laura Tua Muncipal Bid Manager April 01, 2022 ltua@brenntag.com (562)903-9626 Brenntag Pacific, Inc. David Eckelbarger William Huttner None 9/1/2022 5.G.b Packet Pg. 393 Attachment: Oaks Initiative (Brenntag) [Revision 1] (5328 : Sodium Hydroxide) Univar Solutions USA Inc. None 5.G.c Packet Pg. 394 Attachment: Oaks Initiative (Univar) (5328 : Sodium Hydroxide)