SR 11-14-2023 5E
City Council
Report
City Council Meeting: November 14, 2023
Agenda Item: 5.E
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Water Resources
Subject: Award Purchase Orders to Avista Technologies as Primary and King Lee
Technologies as Backup for Antiscalant and CIP Chemicals
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 #4461 to Avista Technologies Corporation as the primary vendor for
the purchase of antiscalant and clean-in-place (CIP) chemicals; and to King Lee
Technologies as the secondary vendor for the purchase of CIP chemicals for the
Public Works Department.
3. Authorize the Procurement Manager to issue a purchase order with Avista
Technologies Corporation for antiscalant and CIP chemicals for a total amount
not to exceed $4,205,000 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 King Lee
Technologies for CIP chemicals for a total amount not to exceed $1,600,000 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 a multi-barrier treatment
process at Arcadia Water Treatment Plant (Arcadia WTP) to provide high-quality, safe,
and reliable drinking water for the City’s 93,000+ residents and over 2,700 commercial
customers. As part of the multi-barrier treatment process, the Arcadia WTP utilizes
antiscalant to optimize efficiency of the reverse osmosis system. Clean-in-place (CIP)
chemicals are periodically used to clean the reverse osmosis system to maintain
optimal performance. Staff recommends issuing a purchase order with Avista
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Technologies Corporation in an amount not to exceed $4,205,000 over a five-year
period for the purchase of antiscalant and CIP chemicals for the Arcadia WTP. Staff
also recommends issuing a purchase order with King Lee Technologies in an amount
not to exceed $1,600,000 over a five-year period as a secondary vendor for the
purchase of CIP chemicals for the Arcadia WTP.
Discussion
The City uses reverse osmosis membranes at the Arcadia WTP as part of a multi-stage
process to treat groundwater sourced from the Santa Monica Basin to supply drinking
water for approximately 18,000 Santa Monica residential, commercial and institutional
service accounts. Reverse osmosis membranes filter out minerals, organic materials,
and salts, and require antiscalant and CIP chemicals to prevent fouling from mineral
scale, biological debris, and other buildup. Without antiscalant and CIP chemicals,
water-processing efficiency would decrease due to clogged membranes, dramatically
shortening the expected five-year membrane lifespan and requiring costly
replacements.
The Arcadia Water Treatment Plant Expansion Project, which will increase overall water
treatment plant capacity, efficiency, and safety, is retrofitting the existing reverse
osmosis system to Flow Reversal Reverse Osmosis, a high-recovery reverse osmosis
system and the first municipal installation in the United States. This technology will
increase the treatment plant recovery from 82% to 90% or greater. As one of the
advantages of the technology, antiscalant consumption and CIP chemical usage is
projected to remain similar to historical consumption rates while treatment plant
efficiencies improve.
Vendor Selection
Bidder Recommendation
Best Bidder Avista Technologies Corporation (Antiscalant & CIP Chemicals), primary vendor
King Lee Technologies (CIP Chemicals), secondary vendor
Evaluation Criteria
Ability, capacity, and skill to provide the materials/services, experience, and
price.
Municipal Code SMMC 2.24.180
Submittals Received (Antiscalant)
Avista Technologies $65.14/treatment Salt-Free Water $21,875/treatment
Nalco Water $34,534/treatment
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Bid Data
Date Posted Posted On
Advertise In
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
08/16/2023 City's Online
Bidding Site
Santa Monica Daily Press 11 09/13/2023
Best Bidder Justification
The proposals were reviewed by a selection panel consisting of staff from the Public
Works Department – Water Resources Division. The proposal evaluations were based
on previous experience, ability to deliver, quality of product, cost, and compliance with
City requirements. Based on the evaluation criteria, staff recommends Avista
Technologies Corporation as the best bidder and primary vendor to provide antiscalant
and CIP chemicals and King Lee Technologies as the secondary vendor to provide
CIP chemicals to the Arcadia Water Treatment Plant. Staff would only order from King
Lee Technologies if primary vendor Avista could not provide products on a timely basis
or if operational issues occurred during use of Avista products on a full-scale basis.
Environmental Review
The purchase and use of the chemicals at the City’s Arcadia WTP is categorically
exempt from CEQA pursuant to Section 15301 of the CEQA Guidelines. The use of the
antiscalant and CIP chemicals are a part of the existing operations at the Arcadia WTP.
Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the Water Fund to award a purchase
order to Avista Technologies Corporation for the purchase of antiscalant and CIP
Chemicals for the Arcadia Water Treatment Plant. In addition, staff seeks authority to
approve funding from the Water Fund to award a purchase order to King Lee
Technologies as a secondary vendor for the purchase of CIP Chemicals for the Arcadia
Water Treatment Plant.
Purchase Order Request (Avista – Primary)
FY 2023-24 Budget Future Years’ Department Account # Total Contract
Submittals Received (CIP Chemicals)
Avista Technologies $5,060/treatment Nalco Water $45,020/treatment
King Lee Technologies $2,652/treatment Salt-Free Water $21,875/treatment
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Request Amount Amount Amount
$415,000 $3,790,000 50500003.525081 $4,205,000
Purchase Order Request (King Lee – Secondary CIP Chemicals)
FY 2023-24 Budget
Request Amount
Future Years’
Amount Department Account # Total Contract
Amount
$150,000 $1,450,000 50500003.525081 $1,600,000
Future year funding is contingent on Council budget approval.
Prepared By: Thomas Poon, Senior Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. Oaks Initiative Form - Avista Technologies Corporation
B. Oaks Initiative Form - King Lee Technologies
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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 personwhois:(a)trustee,(b)director,(c)partner,(d)
officer,orhas(e)morethan a ten percent interest in theentity.
Public benefits include:
1.Personal services contracts in excess of $25,000 over any 12-monthperiod;
2.Sale of material, equipment or supplies to the City in excess of $25,000 over a
12-monthperiod;
3.Purchase, sale or lease of real property to or from the City in excess of
$25,000 over a 12- monthperiod;
4.Non-competitive franchise awards with gross revenue of $50,000 or more
inany 12-monthperiod;
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-monthperiod.
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: Title:
Signature: Date:
Email: Phone:
Permit #
FOR CITY USE ONLY:
Bid/PO/Contract #
by: Greg Leiser EVP Finance & CFO
09/11/2023
gleiser@avistatech.com (760)744-0536
Avista Technologies Corporation
None
Greg Leiser, CFO
5.E.a
Packet Pg. 61 Attachment: Oaks Initiative Form - Avista Technologies Corporation (6036 : Award Bid and Issue POs for Antiscalant and CIP Chemicals)
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 personwhois:(a)trustee,(b)director,(c)partner,(d)
officer,orhas(e)morethan a ten percent interest in theentity.
Public benefits include:
1.Personal services contracts in excess of $25,000 over any 12-monthperiod;
2.Sale of material, equipment or supplies to the City in excess of $25,000 over a
12-monthperiod;
3.Purchase, sale or lease of real property to or from the City in excess of
$25,000 over a 12- monthperiod;
4.Non-competitive franchise awards with gross revenue of $50,000 or more
inany 12-monthperiod;
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-monthperiod.
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: Title:
Signature: Date:
Email: Phone:
Permit #
FOR CITY USE ONLY:
Bid/PO/Contract #
Richard May Regional Account Manager
09/11/2023
rickmay@kingleetech.com (858)693-4062
King Lee Technologies
None
Craig Netwig
5.E.b
Packet Pg. 62 Attachment: Oaks Initiative Form - King Lee Technologies (6036 : Award Bid and Issue POs for Antiscalant and CIP Chemicals)