SR 11-28-2023 5G
City Council
Report
City Council Meeting: November 28, 2023
Agenda Item: 5.G
1 of 6
To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Water Resources
Subject: Award Purchase Orders to Univar (Primary) and Brenntag Pacific, Inc.
(Secondary) for Hydrogen Peroxide and to Hill Brothers Chemical Co. for
Liquid Calcium Chloride
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 #4465 to Univar Solutions USA Inc (Univar) as the primary vendor for
the purchase of hydrogen peroxide and to Brenntag Pacific, Inc. (Brenntag) as
the secondary vendor for the purchase of hydrogen peroxide and to Hill Brothers
Chemical Co. for the purchase of liquid calcium chloride for the Public Works
Department.
3. Authorize the Procurement Manager to issue a purchase order with Univar for
hydrogen peroxide for a total amount not to exceed $1,200,000 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 hydrogen peroxide for a total amount not to exceed
$1,400,000 over a five-year period, with future year funding contingent on
Council budget approval.
5. Authorize the Procurement Manager to issue a purchase order with Hill Brothers
Chemical Co. (Hill Brothers) for liquid calcium chloride for a total amount not to
exceed $350,000 over a five-year period, with future year funding contingent on
Council budget approval.
Summary
The City of Santa Monica’s Water Resources Division is adding new advanced water
treatment facilities to increase local water supplies through projects such as the Olympic
Well Field Restoration Project and Sustainable Water Infrastructure Project (SWIP) and
reduce the City’s reliance on costly imported water supplies. As part of the Olympic Well
5.G
Packet Pg. 258
2 of 6
Field Restoration Project, the City is adding a new ultraviolet advanced oxidation
process (UV-AOP) followed by granular activated carbon filtration for the remediation of
the Olympic Well Field. The facility is expected to be operational by Spring 2024. The
UV-AOP process utilizes hydrogen peroxide for the destruction of harmful industrial
contaminants. Staff recommends issuing a purchase order with Univar as the primary
vendor in an amount not to exceed $1,200,000 over a five-year period and a purchase
order with Brenntag in an amount not to exceed $1,400,000 over a five-year period as a
secondary vendor for the purchase of hydrogen peroxide for the Arcadia Water
Treatment Plant (Arcadia WTP).
The City also recently completed the Sustainable Water Infrastructure Project (SWIP)
which includes a new SWIP Advanced Water Treatment Facility (AWTF) and upgraded
Santa Monica Urban Runoff Recycling Facility (SMURRF) that collectively produce up
to 1.5 million gallons per day of advanced treated recycled water for non-potable reuse
(e.g., irrigation and toilet flushing) and groundwater recharge. Both AWTF and
SMURRF utilize a multi-barrier treatment process and add liquid calcium chloride to the
final treated water for corrosion protection of the recycled water distribution system.
Staff recommends issuing a purchase order with Hill Brothers in an amount not to
exceed $350,000 over a five-year period for the purchase of liquid calcium chloride for
the SWIP.
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 City’s Arcadia
WTP was upgraded in 2010 as part of the Charnock Well Field Restoration Project that
restored local groundwater supplies. However due to industrial contamination, the City
was unable to fully utilize its second largest source of groundwater, the Olympic Well
Field. The City is 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 Olympic Advanced Water Treatment
Facility, co-located at the Arcadia WTP, includes a new UV-AOP treatment process
5.G
Packet Pg. 259
3 of 6
followed by granular activated carbon filtration to destroy harmful industrial
contaminants in the groundwater before it continues through the rest of the facility’s
multi-barrier treatment process. The UV-AOP process utilizes hydrogen peroxide as a
chemical oxidant to facilitate destruction of industrial contaminants. This compound is
widely used at groundwater and water purification facilities throughout California and the
United States.
The City’s SWIP facilities, including the new SWIP AWTF and upgraded SMURRF that
purifies stormwater, urban runoff, brackish groundwater, and municipal wastewater to
provide a drought resilient water supply for the city. To prevent corrosion in the recycled
water distribution system and protect public health, liquid calcium chloride is added to
the final purified water at the SWIP to re-mineralize the water. This compound is also
widely used at water purification facilities throughout California and the United States.
Univar Solutions 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 Univar Solutions is unable to provide hydrogen peroxide because of sourcing
issues similar to what occurred with many chemical companies during the COVID-19
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 uninterrupted clean
drinking water. A backup calcium chloride vendor is not required for the SWIP as it is
currently designated as a non-critical facility and operations can be paused if necessary.
Vendor Selection
Bidder Recommendation
Best Bidder Univar Solutions USA Inc (Hydrogen Peroxide), primary vendor
Brenntag Pacific, Inc. (Hydrogen Peroxide), secondary vendor and
Hill Brothers Chemical Co. (Liquid Calcium Chloride), primary vendor
Evaluation
Criteria
Ability, capacity, and skill to provide the materials/services,
experience, and price.
5.G
Packet Pg. 260
4 of 6
Municipal Code SMMC 2.24.180
Submittals Received (Liquid Calcium Chloride)
Hill Brothers Chemical Co $1.57/gallon Thatcher Company, Inc $2.87/gallon
Bid Data
Date
Posted Posted On
Advertise In
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
08/24/2023 City’s Online
Bidding Site
Santa Monica Daily
Press
12 09/28/2023
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, ability to deliver, quality of product, cost, and compliance with
City requirements. Based on the evaluation criteria, staff recommends Univar as the
best and lowest bidder and primary vendor and Brenntag as the secondary vendor to
provide hydrogen peroxide to the Arcadia WTP. Staff would only order from Brenntag if
primary vendor Univar could not provide products on a timely basis. Staff also
recommends Hill Brothers as the primary vendor for the purchase of liquid calcium
chloride for the SWIP.
Environmental Review
The purchase and use of hydrogen peroxide and liquid calcium chloride at the City’s
Arcadia WTP 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 hydrogen peroxide would allow for the
operations of the UV-AOP treatment process as part of the expanded Arcadia WTP.
The purchase order for liquid calcium chloride would allow for the operations of post-
Submittals Received (Hydrogen Peroxide)
Univar Solutions USA Inc $3.27/gallon Brenntag Pacific, Inc. $3.69/gallon
Hazma LLC $6.32/gallon
5.G
Packet Pg. 261
5 of 6
treatment corrosion control as part of the SWIP AWTF and SMURRF. The purchase
orders would not expand or materially change existing facilities or operations.
Therefore, the purchase orders for hydrogen peroxide and liquid calcium chloride are
categorically exempt pursuant to Section 15301 of the CEQA Guidelines.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Water Fund to award a
purchase order to Univar for the purchase of hydrogen peroxide as the primary vendor;
to Brenntag for the purchase of hydrogen peroxide as a secondary vendor.
Staff seeks authority to approve available funding from the Wastewater Fund to award a
purchase order to Hill Brothers for the purchase of liquid calcium chloride.
Purchase Order Request (Univar – Primary – Hydrogen Peroxide)
FY 2023-24 Budget
Request Amount Department Account # Future Years Total Contract
Amount
$240,000 50500003.525081 $960,000 $1,200,000
Purchase Order Request (Brenntag – Secondary – Hydrogen Peroxide)
FY 2023-24 Budget
Request Amount Department Account # Future Years Total Contract
Amount
$280,000 50500003.525081 $1,120,000 $1,400,000
Purchase Order Request (Hill Brothers – Primary – Liquid Calcium Chloride)
FY 2023-24 Budget
Request Amount Department Account # Future Years Total Contract
Amount
$70,000 51500001.525085 $280,000 $350,000
Future year funding is contingent on Council budget approval.
5.G
Packet Pg. 262
6 of 6
Prepared By: Alex Waite, Process Engineer
Approved
Forwarded to Council
Attachments:
A. Oaks Initiative Form - Brenntag
B. Oaks Initiative Form - Univar
C. Oaks Initiative Form - Hill Brothers
5.G
Packet Pg. 263
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:
Brenntag Pacific, Inc.
Name(s) of trustees, directors, partners, and officers:
Bill Fjelstad, Interim President; Bill Huttner, VP Supply Chain
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
None
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 #
5.G.a
Packet Pg. 264 Attachment: Oaks Initiative Form - Brenntag (6100 : Award Purchase Orders for Hydrogen Peroxide and Liquid Calcium Chloride)
CITY OF SANTA MONICA OAKS INITIATIVE DISCLOSURE FORM
1,1• ,. •••• 11 ••• C"' ••
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:
Apollo Group
David Jukes-President & CEO
Jim Holcomb-SVP & President Chemical North America
Lexa Colin-SVP-General Counsel & Secretary
Nick Alexos-VP & CFO
Name(s) of persons with more than a 10% equity, participation, or revenue interest: None
Prepared by: JennifeJNLdSignature·� #1,�
Email: Jennifer.perras@univarsolutions.com
FOR CITY USE ONLY:
Bid/PO/Contract# _________ _
Title: Sr. Municipal Specialist
Date: 9/25/2023
Phone: 253-872-5040
Permit# _________ _
Univar Solutions USA Inc.
5.G.b
Packet Pg. 265 Attachment: Oaks Initiative Form - Univar (6100 : Award Purchase Orders for Hydrogen Peroxide and Liquid Calcium Chloride)
5.G.c
Packet Pg. 266 Attachment: Oaks Initiative Form - Hill Brothers (6100 : Award Purchase Orders for Hydrogen Peroxide and Liquid Calcium Chloride)