SR 12-19-2023 5C
City Council
Report
City Council Meeting: December 19, 2023
Agenda Item: 5.C
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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.
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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
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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
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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
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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)