Loading...
SR 01-23-2024 5D City Council Report City Council Meeting: January 23, 2024 Agenda Item: 5.D 1 of 5 To: Mayor and City Council From: Rick Valte, Public Works Director, Public Works, Water Resources Subject: Award Purchase Orders to Industrial Solution Services (Primary) and Brenntag Pacific (Secondary) for the Purchase of Ammonium Sulfate for the Arcadia WTP and SWIP AWTF Recommended Action Staff recommends that the City Council: 1. Adopt a finding of categorical exemption pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act (CEQA) Guidelines. 2. Award Bid #4466 to Industrial Solution Services, Inc. (Industrial) as the primary vendor for the purchase of ammonium sulfate and to Brenntag Pacific, Inc. (Brenntag) as the secondary vendor for the purchase of ammonium sulfate for the Public Works Department. 3. Authorize the Procurement Manager to issue a purchase order with Industrial for ammonium sulfate for a total amount not to exceed $700,000 over a five-year period, with future year funding contingent on Council budget approval. 4. Authorize the Procurement Manager to issue a purchase order with Brenntag as the secondary vendor for ammonium sulfate for a total amount not to exceed $700,000 over a five-year period, with future year funding contingent on Council budget approval. Summary The City of Santa Monica’s Water Resources Division operates the Arcadia Water Treatment Plant (Arcadia WTP) to provide high-quality, reliable drinking water to the city’s residents and businesses. The City also recently completed the Sustainable Water Infrastructure Project (SWIP) which includes a new Advanced Water Treatment Facility (AWTF) to produce high-quality advanced treated recycled water to increase local water supplies and reduce the City’s reliance on costly imported water supplies. Both facilities utilize a multi-barrier treatment process which includes disinfection through 5.D Packet Pg. 149 2 of 5 monochloramination: the combination of ammonium sulfate and chlorine compounds to produce long-lasting and effective disinfectant monochloramines. Staff recommends issuing a purchase order with Industrial as the primary vendor in an amount not to exceed $700,000 over a five-year period and a purchase order with Brenntag in an amount not to exceed $700,000 over a five-year period as a secondary vendor for the purchase of ammonium sulfate for the Arcadia WTP and SWIP AWTF. Discussion The City of Santa Monica’s Water Resources Division operates a multi-barrier treatment process at Arcadia WTP to provide high-quality, safe, and reliable drinking water for the City’s 93,000+ residents and over 2,700 commercial customers. The Arcadia WTP was upgraded in 2010 as part of the Charnock Well Field Restoration Project that restored local groundwater supplies. The City is currently expanding the Arcadia WTP to include the Olympic Advanced Water Treatment Facility as part of the Olympic Well Field Restoration Project, which is expected to be operational by Spring 2024. The City’s new SWIP AWTF purifies stormwater, urban runoff, and municipal wastewater to provide a drought resilient advanced treated recycled water supply for irrigation, dual-plumbing, and groundwater recharge applications. As part of the multi-barrier treatment process at both facilities, disinfection is utilized in various stages of the process as well as in the treated drinking water produced at the Arcadia WTP through a process called monochloramination. This process involves the combination of ammonium sulfate and chlorine compounds to produce long-lasting and effective disinfectant monochloramines. These monochloramines maintain the quality of the drinking water throughout the distribution system so the city can maintain a safe and reliable drinking water supply. Ammonium sulfate is a key part of this process. This compound is widely used at groundwater and water purification facilities throughout California and the United States. Industrial was selected as the primary vendor as they scored the highest in the evaluation. The full amount requested for Brenntag is being requested as a backup in the event Industrial is unable to provide ammonium sulfate because of sourcing issues similar to what occurred with many chemical companies during the COVID-19 5.D Packet Pg. 150 3 of 5 pandemic. Supply chain issues remain a concern to this day. Staff does not plan to expend the full amount with both vendors. By approving a spending authority that would cover the anticipated total expenditure to both vendors, the City would have the flexibility to source from two vendors and continue to provide clean drinking water and advanced treated recycled water without interruption. Vendor Selection Bidder Recommendation Best Bidder Industrial Solution Services, Inc., primary vendor Brenntag Pacific, Inc., secondary vendor Evaluation Criteria Ability, capacity, and skill to provide the materials/services, experience, and price. Municipal Code SMMC 2.24.180 Bid Data Date Posted Posted On Advertise In (City Charter & SMMC) Vendors Downloaded Date Publicly Opened 09/21/23 City’s Online Bidding Site Santa Monica Daily Press 11 10/19/23 Best Bidder Justification The bids were reviewed by a selection panel consisting of staff from the Water Resources Division of the Public Works Department. The bids were evaluated based on previous experience in providing these chemicals to other municipalities in the region, ability to deliver, quality of product, cost, and compliance with City requirements. Based on the evaluation criteria, staff recommends Industrial as the best and lowest bidder and primary vendor and Brenntag as the secondary vendor to provide ammonium sulfate to the Arcadia WTP and SWIP AWTF. Staff would only order from Brenntag if primary vendor Industrial could not provide products on a timely basis. Submittals Received Industrial Solution Services, Inc. $14,112/delivery Brenntag Pacific, Inc. $15,319/delivery Hill Brothers Chemical Co $31,519/delivery Univar Solutions USA, Inc. $20,610/delivery 5.D Packet Pg. 151 4 of 5 Environmental Review The purchase and use of ammonium sulfate at the City’s Arcadia WTP and SWIP AWTF is categorically exempt from CEQA pursuant to Section 15301 (Class 1 - Existing Facilities) of the CEQA Guidelines. Section 15301 provides exemption for the operation, repair, maintenance, permitting, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination. The purchase orders for ammonium sulfate would allow for the operations of chemical disinfection as part of the existing Arcadia WTP and SWIP AWTF. The purchase orders would not expand or materially change existing facilities or operations. Therefore, the purchase orders for ammonium sulfate are categorically exempt pursuant to Section 15301 of the CEQA Guidelines. Financial Impacts and Budget Actions Staff seeks authority to approve funding from the Water Fund and the Wastewater Fund to award a purchase order to Industrial for the purchase of ammonium sulfate as the primary vendor; and to Brenntag for the purchase of ammonium sulfate as a secondary vendor. Purchase Order Request (Industrial – Primary) FY 2023-24 Budget Request Amount Department Account # Future Years Total Contract Amount $114,000 50500003.525081 $551,000 $665,000 $6,000 51500001.525085 $29,000 $35,000 Total: $700,000 Purchase Order Request (Brenntag – Secondary) FY 2023-24 Budget Amount Department Account # Future Years Total Contract Amount $114,000 50500003.525081 $551,000 $665,000 $6,000 51500001.525085 $29,000 $35,000 Total: $700,000 Future year funding is contingent on Council budget approval. 5.D Packet Pg. 152 5 of 5 Prepared By: Alex Waite, Process Engineer Approved Forwarded to Council Attachments: A. Oaks Initiative Form - Industrial Solution Services Inc. B. Oaks Initiative Form - Brenntag Pacific, Inc. 5.D Packet Pg. 153 5.D.a Packet Pg. 154 Attachment: Oaks Initiative Form - Industrial Solution Services Inc. (6136 : Award Purchase Order to Industrial Solutions and Brenntag Pacific 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: Laura Tua/Pacific/Brenntag Title: Municipal Bid Manager Signature: Date: September 12, 2023 Email: Ltua@brenntag.com Phone: 562 903-9626 FOR CITY USE ONLY: Bid/PO/Contract # Permit # Brenntag Pacific, Inc. Bill Fjelstad, Interim President; Bill Huttner, VP Supply Chain None 5.D.b Packet Pg. 155 Attachment: Oaks Initiative Form - Brenntag Pacific, Inc. (6136 : Award Purchase Order to Industrial Solutions and Brenntag Pacific for