SR 06-13-2023 5A
City Council
Report
City Council Meeting: June 13, 2023
Agenda Item: 5.A
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Water Resources
Subject: Award Bid #4450 to Ferguson Waterworks as Primary and Core & Main as
Secondary to Furnish & Deliver Water & Wastewater Department Supplies
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of categorical exemption pursuant to Section 15302
(Replacement or Reconstruction) of the California Environmental Quality Act
Guidelines.
2. Award Bid #4450 to Ferguson Waterworks as the primary vendor for the
purchase of water and wastewater supplies and Core & Main as the secondary
vendor for the purchase of water and wastewater supplies.
3. Authorize the Procurement Manager to issue a purchase order with Ferguson
Waterworks in an amount not to exceed $410,000 for year one, with four
additional one-year renewal options at approximately 10% escalator each year,
for a total amount not to exceed $2,600,000 over five years, with future year
funding contingent on Council budget approval.
4. Authorize the Procurement Manager to issue a purchase order with Core & Main
in an amount not to exceed $100,000 for one year, with four additional one -year
renewal options at a 10% increase each year, for a total amount not to exceed
$610,000.00 over five years, with future year funding contingent on Council
budget approval.
Summary
The City of Santa Monica’s Water Resources Division within the Public Works
Department is responsible for the delivery of high-quality, safe, and reliable drinking
water as well as providing safe collection and disposal of wastewater for customers.
The Water Resources Division purchases and maintains an inventory of supplies and
parts to perform routine preventative maintenance and repairs of the City’s water
treatment facilities, water recycling facilities, potable water distribution, and wastewater
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collection infrastructure to support day-to-day water and wastewater operations. Staff
recommends Ferguson Waterworks as the primary vendor to provide water and
wastewater repair parts and supplies in an amount not to exceed $2,600,000 over a
five-year period. Staff also recommends Core & Main as secondary vendor, due to
potential supply chain shortages, in an amount not to exceed $610,000 over a five-year
period.
Discussion
The Water Resources Division maintains approximately 1,300 fire hydrants and 18,000
water service connections through a 205-mile network of distribution mains ranging in
size from 6 to 36 inches as well as over 150 miles of wastewater collection pipelines,
two flow monitoring and sampling stations, and a 26 million gallon-per-day wastewater
pumping station. To maintain day-to-day operations providing drinking water and
wastewater collection services to the community, adequate supplies and repair parts
are needed to ensure uninterrupted operation of the City’s water and wastewater
infrastructure. These supplies and repair parts include, but are not limited to, gate
valves, stainless steel repair clamps, strap saddles, copper pipe, tapping sleeves, and
vitrified clay sewer pipe.
Repair parts and supplies are used daily by the Water Resources Division’s water
construction, wastewater, and meter shop crews to perform preventative maintenance
and/or emergency repairs. A small inventory is kept on-site, but as space is limited, the
division would make use of the Just-in-Time inventory management system provided by
the vendor. Just-in-Time inventory management is a process where parts and supplies
are ordered and received as-needed for scheduled maintenance and repair projects. In
the event of an emergency, the division relies on available in-house inventory and close
coordination with the vendor to deliver parts and supplies immediately, at any time of
the day or night, seven days per week.
This bid award would allow both water and wastewater crews to perform routine
maintenance and emergency repairs without delay and prolonged service interruptions
to the City’s customers.
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Vendor Selection
Bidder Recommendation
Best Bidder Ferguson Waterworks
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 City shall have absolute discretion in
determining the applicability and weight of the criteria listed above.
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
03/08/2023 City's Online Bidding
Site
Santa Monica Daily
Press
17 04/05/2023
Best Bidder Justification
Ferguson Waterworks was chosen as the best bidder based on price, the proximity for
in-store pickup to Santa Monica, and the ability to deliver same day. Supply chain
issues still affect availability of supplies. Therefore, Core & Main has been selected as
backup vendor to provide department supplies in the event Ferguson Waterworks is
unable to source the supplies needed for fulfillment. S&J Supply Co. submitted a bid
with the lowest pricing but was unable to hold pricing beyond 30 days of submission of
bid and in future years.
Environmental Review
Use of repair parts and supplies to perform preventative maintenance and/or
emergency repairs is categorically exempt pursuant to Section 15302 (Replacement
and Reconstruction) of the California Environmental Quality Act (CEQA) Guidelines.
Section 15302 exempts projects which “consists of replacement or reconstruction of
existing structures and facilities where the new structure will be located on the same site
as the structure replaced and will have substantially the same purpose and capacity as
the structure replaced.” The award for water and wastewater supplies would allow for
Submittals Received
Ferguson Waterworks $7,305.91 S&J Supply Co. $7,204.59
Core & Main $9,033.95
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existing facilities to be maintained and repaired with replacement materials and would
not expand or materially change existing facilities or operations. Therefore, the project is
categorically exempt as set forth in Section 15302 of the CEQA Guidelines.
Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the Water and Wastewater Enterprise
Funds to award a purchase order to Ferguson Waterworks as the primary vendor to
provide water and wastewater supplies and a purchase order to Core & Main as
secondary vendor in the event Ferguson Waterworks is unable to fulfill the order. Funds
are included in the FY 2023-25 Proposed Biennial Budget. Future year funding is
contingent on Council budget approval.
Ferguson Waterworks Purchase Order Request
(Primary Vendor)
FY 2023-24 Budget
Request Amount Department Account # Future Years Amount Total Contract
Amount
$390,000 50500001.525080 $2,084,000 $2,474,000
$20,000 51500001.525080 $106,000 $126,000
$410,000 $2,190,000 $2,600,000
Core & Main Purchase Order Request
(Secondary Vendor)
FY 2023-24 Budget
Request Amount Department Account # Future Years Amount Total Contract
Amount
$70,000 50500001.525080 $357,000 $427,000
$30,000 51500001.525080 $153,000 $183,000
$100,000 $510,000 $610,000
Prepared By: Chris Aguillon, Water Resources Protection Specialist
Approved
Forwarded to Council
Attachments:
A. Oaks Initiative (Ferguson)
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B. Oaks Initiative (Core and Main)
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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 personwhois:(a)trustee,(b)director,(c)partner,(d)
officer,orhas(e)morethan a ten percent interest in theentity.
Public benefits include:
1.Personal services contracts in excess of $25,000 over any 12-monthperiod;
2.Sale of material, equipment or supplies to the City in excess of $25,000 over a
12-monthperiod;
3.Purchase, sale or lease of real property to or from the City in excess of
$25,000 over a 12- monthperiod;
4.Non-competitive franchise awards with gross revenue of $50,000 or more
inany 12-monthperiod;
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-monthperiod.
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:
Permit #
FOR CITY USE ONLY:
Bid/PO/Contract #
Aaron Sadler Municipal Sales
04/03/2023
aaron.sadler@ferguson.com (714)865-5196
Ferguson Enterprises, LLC dba Ferguson Waterworks
None
Kevin Murphy, CEO
Alex Hutcherson II, COO
Bill Brundage, CFO
5.A.a
Packet Pg. 46 Attachment: Oaks Initiative (Ferguson) (4944 : Water & Wastewater Department Supplies)
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 personwhois:(a)trustee,(b)director,(c)partner,(d)
officer,orhas(e)morethan a ten percent interest in theentity.
Public benefits include:
1.Personal services contracts in excess of $25,000 over any 12-monthperiod;
2.Sale of material, equipment or supplies to the City in excess of $25,000 over a
12-monthperiod;
3.Purchase, sale or lease of real property to or from the City in excess of
$25,000 over a 12- monthperiod;
4.Non-competitive franchise awards with gross revenue of $50,000 or more
inany 12-monthperiod;
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-monthperiod.
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:
Permit #
FOR CITY USE ONLY:
Bid/PO/Contract #
Jenna Heim Municipal Account Manager
04/01/2023
jenna.heim@coreandmain.com (661)289-2719
Core & Main, LP
None
Stephen O. LeClair, CEO; Mark R. Witowski, VP & CFO; Mark G. Whittenburg, General Counsel & Secretary;
Laura K. Schneider, Chief HR Officer; Bradford A Cowles, President, Fire Protection;
John R. Schaller, President, Waterworks
5.A.b
Packet Pg. 47 Attachment: Oaks Initiative (Core and Main) (4944 : Water & Wastewater Department Supplies)