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SR 12-19-2023 5C City Council Report City Council Meeting: December 19, 2023 Agenda Item: 5.C 1 of 4 To: Mayor and City Council From: Rick Valte, Public Works Director, Public Works, Public Landscape Subject: Award Bid and Issue a Purchase Order to HASA, Inc. for Pool Chemicals and Supplies 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 #4470 to HASA, Inc., for the purchase of pool chemicals for the Public Works Department. 3. Authorize the Procurement Manager to issue a purchase order with HASA, Inc. for pool chemicals in an amount not to exceed $168,598 (for one year, with four additional one-year renewal option(s) to extend on the same terms and conditions) for a total amount not to exceed $1,029,305 over a five-year period which includes an annual escalator not to exceed 10%, with future year funding contingent on Council budget approval. 5.C Packet Pg. 197 2 of 4 Summary The City of Santa Monica’s Public Landscape Division purchases pool chemicals for the routine maintenance of three public swimming pools and two splash pads to ensure a safe swimming environment for the public. These chemicals are necessary to maintain the proper balance of water chemistry as required by the Los Angeles County Department of Public Health (County). Staff recommends issuing a purchase order to HASA, Inc. in an amount not to exceed $168,598 for one year with four one -year renewal options for a total amount not to exceed $1,029,305 over a five-year period which includes an annual escalator not to exceed 10%, with future year funding contingent on Council budget approval. Discussion The City’s public pools and treated splashpads require routine chemical treatments to maintain the proper balance of water chemistry and a safe environment for the public. To comply with Los Angeles County requirements and to further Council’s priority for a Clean and Safe city, staff regularly purchases muriatic acid, sodium hypochlorite, sodium bicarbonate, calcium hypochlorite, CO2, and calcium chloride for the Annenberg Beach House, Santa Monica Swim Center, and the Virginia Avenue Park splashpad. Staff recommends issuing a purchase order to HASA, Inc. for the purchase of pool chemicals in an amount not to exceed $168,598 for one year with four one -year renewal options for a total amount not to exceed $1,029,305 over a five -year period. The price estimated for the 4 renewal options assumes a 10% annual escalator. HASA, Inc. proposed renewal options at an increase of not more than 10% annually and has committed to conducting transparent price reviews. HASA, Inc. will negotiate with the City based on current market rates before any such increase is accrued with future year funding contingent on Council budget approval. Market conditions that influence the price of pool chemicals have fluctuated in recent years. These factors include supply- chain availability, manufacturing workforce limitations, extreme weather patterns, and a pandemic-era surge in construction of private property pools. Vendor Selection 5.C Packet Pg. 198 3 of 4 Bidder Recommendation Best Bidder HASA, 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 reputation, experience and efficiency of the bidder. Municipal Code SMMC 2.24.180 Bid Data Date Posted Posted On Advertised In (City Charter & SMMC) Vendors Downloaded Date Publicly Opened 10/17/2023 City's Online Bidding Site Santa Monica Daily Press 15 11/7/2023 Best Bidder Justification A selection panel including staff from the Public Landscape Division (Public Works Department) and the Annenberg Beach House (Recreation and Arts Department) reviewed the bids received. HASA, Inc. was selected as the best bidder due to a combination of price, availability of goods, reasonable delivery fees, and options for renewal. Of the four bids the City received, one bidder, NorthStar Chemicals, only submitted a bid for sodium hypochlorite (one of the six chemicals requested). Two bidders, Agni Enterprises and Waterline Technologies, were significantly more expensive than HASA, Inc. HASA, Inc. has included renewal options at an increase of not more than 10% annually and has committed to conducting transparent price reviews and would negotiate with the City based on current market rates before any such increase is accrued. Environmental Review The purchase order for pool chemicals is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 of the CEQA Guidelines. Section 15301 (Existing Facilities) exempts Class 1 projects consisting of the "operation, repair, Submittals Received Agni Enterprises $4,706,054 Northstar Chemical $108,858 HASA Inc $168,598 Waterline Technologies Inc $223,410 5.C Packet Pg. 199 4 of 4 maintenance, permitting, leasing, licensing, 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 order would provide for maintenance of the City’s existing swimming pool facilities, and therefore, is categorically exempt from CEQA pursuant to Section 15301 of the CEQA Guidelines. Financial Impacts and Budget Actions Staff seeks authority to approve available funding from the General Fund and Beach Fund to award a purchase order with HASA, Inc. for the purchase of pool chemicals. FY 2023-24 Budget Request Amount Future Years Amount Department Account # Total Contract Amount $144,736 $738,894 01500036.525080 $883,630 $23,862 $121,814 11500001.525290 $145,675 $168,598 $860,708 $1,029,305 Future year funding is contingent on Council budget approval. Prepared By: Leah Cornelius, Staff Assistant III Approved Forwarded to Council Attachments: A. Oaks Initiative Form - HASA 5.C Packet Pg. 200 5.C.a Packet Pg. 201 Attachment: Oaks Initiative Form - HASA [Revision 1] (5980 : Award Bid and Issue a Purchase Order to HASA for Pool Chemicals and Supplies)