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SR 06-13-2023 5A City Council Report City Council Meeting: June 13, 2023 Agenda Item: 5.A 1 of 5 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 5.A Packet Pg. 41 2 of 5 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. 5.A Packet Pg. 42 3 of 5 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 5.A Packet Pg. 43 4 of 5 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) 5.A Packet Pg. 44 5 of 5 B. Oaks Initiative (Core and Main) 5.A Packet Pg. 45 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)