City Council
Report
City Council Meeting: October 25, 2022
Agenda Item: 5.F
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Water Resources Subject: Award Bid #4431 to JCI Jones Chemicals Inc. and Univar Solutions USA for the Purchase of Sodium Hypochlorite
Recommended Action
Staff recommends that the City Council:
1. Award Bid #4431 to JCI Jones Chemicals Inc as the primary vendor for the purchase of sodium hypochlorite for the Arcadia Water Treatment Plant (Arcadia), Charnock Well Field (Charnock), and the Sustainable Water Infrastructure Project (SWIP) site; Univar Solutions USA as the secondary vendor for the purchase of sodium hypochlorite for SWIP;
2. Authorize the Procurement Manager to issue a purchase order with JCI Jones Chemicals for sodium hypochlorite in the amount not to exceed $200,000 for one year, with four additional one-year renewal options to extend at mutually agreeable price adjustment for a total not to exceed $1,150,000.
3. Authorize the Procurement Manager to issue a purchase order with Univar Solutions USA for sodium hypochlorite in the amount not to exceed $100,000 for one year, with four additional one-year renewal options to extend at increases between 5% to 10%, for a total not to exceed $575,000.
Summary
The City of Santa Monica, Department of Public Works – Water Resources Division operates a multi-barrier treatment process, through the Charnock Treatment Plant and Arcadia Water Treatment Plant to provide high-quality, safe and reliable water. In addition, the City will be bringing online the Sustainable Water Infrastructure Project (SWIP) to increase recycled water production in Fall 2022.
The treatment processes at the Charnock Treatment Plant, Arcadia Water Treatment Plant, and SWIP all use sodium hypochlorite to support filtration processes as well as 2 of 4
disinfecting the water. Staff recommends JCI Jones Chemicals as the primary vendor to provide the sodium hypochlorite for all of the City’s treatment facility locations in an amount not to exceed $1,150,000 over a five-year period, which also includes anticipated cost escalation over the contract period. The COVID-19 pandemic has impacted the vendor’s ability to maintain consistent deliveries of chemicals for continuous operations at the City’s water treatment facilities. Univar Solutions will serve as a secondary vendor to SWIP should the JCI Jones Chemicals’ supply be interrupted by material or labor shortages in an amount not to exceed $575,000 over a five-year period, which also includes anticipated cost escalation over the contract period. Olin Corporation was selected as the secondary vendor for Arcadia but declined the award.
Discussion
The City uses a multi-barrier treatment process, at the Charnock Treatment Plant and Arcadia Water Treatment Plant, to produce high-qualify and safe drinking water for the City’s customers. Sodium hypochlorite (purchased as 12-15% solution of NaOCl) is used by various treatment processes at both the Charnock Treatment Plant and Arcadia Water Treatment Plant to ensure the City’s drinking water meets or exceeds all federal and state regulations for drinking water.
The treatment processes at the Charnock Treatment Plant, located at the Charnock Well Field, consists of greensand filtration, biological granular activated carbon filtration, and chlorine disinfection. Sodium hypochlorite is used at the Charnock Treatment Plant to facilitate iron and manganese removal through greensand filtration and to provide disinfection after the biological granular activated carbon filters. It is estimated that the Charnock Treatment Plant will receive approximately 11 deliveries, at 5,000 gallons per delivery, of sodium hypochlorite each year. The treatment processes at the Arcadia Water Treatment Plant consists of greensand filtration, reverse osmosis filtration, decarbonation towers (air stripping), and chlorine disinfection. Sodium hypochlorite is used at the Arcadia Water Treatment Plant to facilitate iron and manganese removal through greensand filtration, protects the reverse osmosis membranes, and disinfects the final treated water before it is distributed for use as drinking water. It is estimated 3 of 4
that the Arcadia Water Treatment Plant will receive approximately 18 deliveries, at 5,000 gallons per delivery, of sodium hypochlorite each year.
The City is also working on expanding recycled water production, with the completion of SWIP expected by the end of Fall 2022, to diversify and increase drought resiliency in its overall water supply. SWIP includes a new Advanced Water Treatment Facility that uses sodium hypochlorite to support the multi-barrier treatment process to produce advanced treated recycled water for non-potable uses (e.g., irrigation and toilet flushing) and to recharge local groundwater supplies. The SWIP Advanced Water Treatment Facility uses sodium hypochlorite to clean the microfiltration filters, protect the reverse osmosis membranes, as an oxidant in the ultraviolet light advanced oxidation process, and to disinfect the advanced treated recycled water. It is estimated that the SWIP Advanced Water Treatment Facility will receive approximately 21 deliveries, at 2,000 gallons per delivery, of sodium hypochlorite each year.
Vendor Selection
Bidder Recommendation
Best Bidder JCI Jones Chemicals
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 sufficiency of the bidder’s financial resources; The City is not required to select the bid with the lowest price.
Municipal Code SMMC 2.24.180
Bid Data
Date Posted Posted On
Advertise In
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
08/15/2022 City's Online
Bidding Site
Santa Monica Daily Press 10 09/12/2022
Best Bidder Justification
JCI Jones Chemicals was chosen as the best bidder based on price and the ability to provide the chemical to three locations requested. Supply chain issues still affect availability of chemicals and has on occasion in the past few years made it difficult for chemical vendors to source the chemical ordered.
Therefore, Univar has been selected as backup vendor to SWIP in the event JCI Jones Chemicals is Submittals Received
JCI Jones Chemicals $1.82/gal
$2.24/gal
Arcadia & Charnock
SWIP
Univar Solutions $3.92/gal SWIP
Olin Corporation $1.90/gal Arcadia & Charnock
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unable to source the chemical for fulfillment. Olin Corporation declined the backup award to Arcadia and Charnock.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Water and Wastewater Funds to award a purchase order with JCI Jones Chemicals as the primary vendor to provide Sodium Hypochlorite and a purchase order to Univar as secondary vendor in the event JCI Jones is unable to fulfill the order. Future year funding is contingent on Council budget approval.
JCI Jones Purchase Order Request
Arcadia, Charnock & SWIP (Primary Vendor)
FY 2022-23
Amount
Future Years Amount Department Account # Total Contract Amount
$40,000.00 $190,000 50500002.525081 $230,000.00
$60,000.00 $285,000 50500003.525081 $345,000.00
$100,000.00 $475,000 51500001.525085 $575,000.00
$200,000 $950,000 Total $1,150,000.00
Univar Solutions Purchase Order Request
SWIP (Secondary Vendor)
FY 2022-23
Amount
Future Years Amount Department/CIP Account # Total Contract Amount
$100,000.00 $475,000 51500001.525085 $575,000.00
Prepared By: Thomas Poon, Senior Administrative Analyst Approved Forwarded to Council
Attachments:
A. Oaks Initiative (JCI Jones Chemcials Inc.)
B. Oaks Initiative (Univar)