ITEM:		ACTION ITEM
14.	CONSIDER FINDINGS PURSUANT TO PUBLIC CONTRACT CODE SECTION 3400(C) AND EXPENDITURE FOR SANTA MARGARITA WATER TREATMENT FACILITIES EQUIPMENT PRE-PURCHASE
Meeting Date:			August 19, 2019	Budgeted:	Yes
From:			David J. Stoldt	Program/	Water Supply Projects
			General Manager	Line Item:	35-04-786004
Prepared By:			Maureen Hamilton	Cost Estimate:	$88,516.21
General Counsel Review: Yes
Committee Recommendation: The Administrative Committee reviewed this item on August 12, 2019 and recommended approval on a 2 to 1 vote.
CEQA Compliance: The Board adopted an addendum to the ASR EIR/EA for the Santa Margarita Water Treatment Facilities project on July 15, 2019.

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

MPWMD owns the Santa Margarita site and is responsible for construction of the Project at the site. Cal-Am will operate and maintain the Project facilities. Cal-Am has standardized on water treatment equipment brands in order to reduce operating and maintenance costs, improve reliability, and improve operability.

Cal-Am needs the Project to be substantially complete by early summer of 2020 to provide training time and utilize the Seaside Middle School wells for summer production of PWM water.

To facilitate the Project timeline, staff identified long lead time materials that should be purchased in advance. The lead time for Prominent chemical feed systems was identified as potentially negatively impacting the Project completion schedule.

RECOMMENDATION: That the Board of Directors:

1. Make findings pursuant to Public Contract Code Section 3400(c) that specific brands or trade names identified in the specifications and in the Call for Bids, are designated in order to match other materials, products, things or services already in use throughout the system

2. Authorize the General Manager enter into a contract with Hopkins Technical Products, Inc. to purchase Prominent chemical feed systems for the amount of $80,469.28, with a 10% contingency for expedited delivery, if available and required, to be authorized by MPWMD staff, for a total amount not-to-exceed (NTE) $88,516.21.

DISCUSSION: As the water supply portfolio transitions from Carmel River diversions to PWM water, production of PWM water from the SGB will provide at least one-third of our water supply in addition to recovered ASR water. The water produced along General Jim Moore Boulevard from the ASR wells will be transported via the new Monterey Pipeline to the Forest Lakes tanks where it will be used to serve the Peninsula communities. Water treatment at the General Jim Moore Boulevard production facilities must accommodate a wide range of flows reliably and precisely.

Public Contract Code 3400(c) provides that a material or product may be designated by brand name or trade name to match other products in use on a particular public improvement either completed or in the course of completion provided the awarding authority, or its designee, makes a finding that is described in the Invitation to Bid or request for proposals

Cal-Am will operate the Project water treatment facility and maintains all facilities including the Santa Margarita and Seaside Middle School sites. Some equipment to be purchased and installed as a part of the Project have standard brands already in use in the system. Equipment purchased by MPWMD cannot be used in rate increases approved by the California Public Utilities Commission for Cal-Am. For the equipment with brand specification, the following benefits are achieved:

· Standard, existing operating and maintenance procedures

o faster use and repair,

o lower manpower cost,

o lower training cost,

o more accurate operation,

o more reliable water supply quantity and quality.

· Stocked spare parts

o reduced spare parts cost,

o availability of spare parts increasing system-wide reliability.

· Vendor service contracts for calibration and preventative maintenance

o new, stand-alone contracts are more expensive and require greater manpower to manage,

o vendor service is more accessible and responsive,

o stocked spare parts reasoning applies to vendor service contracts

Once the bid is awarded, the competitively selected contractor will procure and install the designated equipment without substitution with the exception of the present request for a material pre-purchase of Prominent chemical feed systems.

The Project designer investigated lead times for Project components and found that Prominent chemical feed systems had a lead time that if not purchased in advance, would cause the Project to miss the substantial completion date. Therefore, pre-purchasing this equipment is required to meet the Project completion schedule.

Prominent chemical feed systems can be purchased only through approved suppliers. There is one supplier for each region in the country. A customer cannot solicit bids from multiple regions. Bidding this material would result in lost cost pursuing a quotation from the one possible supplier. The agreement payment terms will be lump sum, and will be executed prior to the Project construction contract. MPWMD staff will negotiate expedited delivery if required and available.

EXHIBITS

14-A Quotation for Prominent Chemical Feed Systems

14-B Request for sole-source equipment

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