ADMINISTRATIVE COMMITTEE
6.	CONSIDER EXPENDITURE FOR PRE-PURCHASE OF MATERIALS NECESSARY TO CONSTRUCT SANTA MARGARITA DISINFECTION FACILITIES
Meeting Date:		August 12, 2019	Budgeted:	Yes
From:		David J. Stoldt	Program/	Water Supply Projects
		General Manager	Line Item:	35-04-786004
Prepared By:		Maureen Hamilton	Cost Estimate:	$88,516
General Counsel Review: Yes
Committee Recommendation: The Administrative Committee reviewed this item on August 12, 2019 and recommended ________________.
CEQA Compliance: The Board adopted an addendum to the Aquifer Storage and Recovery EIR/EA for the Santa Margarita Water Treatment Facilities project on July 15, 2019.

SUMMARY: Staff is proposing to begin construction to complete the Santa Margarita Disinfection Facilities Project (Project) at MPWMD’s Santa Margarita site located at 1910 General Jim Moore Boulevard this fall. The Project will construct disinfection facilities required for California-American Water (Cal-Am) to recover Pure Water Monterey (PWM) water from the Seaside Groundwater Basin (SGB).

To facilitate timely completion of the project, long lead time items were identified and should be purchased in advance. These are items that Cal-Am has standardized in order to reduce maintenance costs, improve reliability, and improve operability in their Monterey delivery system.

MPWMD owns the Santa Margarita site and is responsible for construction of works at the site. Cal-Am will operate and maintain the Project works.

The Project will bid in August 2019. Cal-Am needs the Project to be substantially completed by May 31, 2020 in order to provide training time and utilize the Seaside Middle School site for summer production of PWM water.

RECOMMENDATION: That the Administrative Committee recommend that the Board of Directors:

1. Make a finding under Public Contract Code Section 3400 (c) (2) and (3) that the materials to be purchased under this authorization are required in order to match other products in use within the Cal-Am system and that the necessary materials are available from one source.

2. Authorize the General Manager to enter into a contract with Hopkins Technical Products, Inc. to purchase chemical feed systems for the amount of $80,469.28, with a 10% contingency for delivery, offloading, and/or storage to be authorized by MPWMD staff, for a total amount not-to-exceed (NTE) $88,516.

DISCUSSION: The Project work includes and is not limited to:

· A CMU building approximately 1,500 square feet in size with HVAC

· Chemical delivery, storage, and feed systems

· An exterior above-ground metering and chemical injection manifold

· Installation of approximately 2”-30” pipe

· Associated appurtenances, analyzers, electrical, excavation, trenching, backfill, pavement, fencing

The Project designer (Pueblo Water Resources) investigated lead times for project components and found that the chemical feed systems had a lead time that would cause the Project to miss the substantial completion date. Pre-purchasing this equipment is required to meet the Project completion schedule.

Prominent chemical feed systems are standard at Cal-Am’s disinfection facilities on the Monterey Peninsula, are used at nineteen (19) facilities in the area, and are additionally used in the waste water portion of their business locally. Standardization achieves the following benefits:

· Reduced spare parts cost

· Reliability due to interchangeability, availability of spare parts, maintenance expertise

· Ease of maintenance reducing labor cost and downtime

· Ease of operation increasing productivity and accuracy

· Ease of training improving cost and reliability

· Equipment performance history

Public Contracting Code 3400 states that a material or product may be designated by brand name or trade name in order to match other products in use on a particular public improvement either completed or in the course of completion. The awarding authority, or its designee, must make a finding that is described in the invitation to bid.

Prominent chemical feed systems can be purchased only through approved suppliers. There is one approved supplier for each region in the country. A customer cannot solicit bids from multiple regions. Bidding this material would likely not result in any costs savings, but would result in a schedule delay. Pre-purchasing the materials will facilitate installation of the system in a time frame to meet Cal-Am’s requirements.

The agreement payment terms will be lump sum. Staff will negotiate delivery, offloading, and storage. The agreement will be executed prior to the construction contract.

EXHIBIT

6-A Quotation for Prominent Chemical Feed Systems

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