SR 01-23-2024 5D
City Council
Report
City Council Meeting: January 23, 2024
Agenda Item: 5.D
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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
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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
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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
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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.
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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.
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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