TITLE
Recommendation to adopt resolution authorizing City Manager, or designee, to execute a contract with Purifics Water, Inc., of London, Ontario (CAN), for the purchase of stormwater filtration equipment for the Long Beach Municipal Urban Stormwater Treatment Project, in an amount of $4,882,480, authorize a 10 percent contingency in the amount of $488,248, for a total contract amount not to exceed $5,370,728. (District 1)
DISCUSSION
City Council approval is requested to enter into a contract with Purifics Water, Inc. (Purifics) to furnish and deliver stormwater filtration equipment for the Long Beach Municipal Urban Stormwater Treatment (LB-MUST) Project.
The LB-MUST Project (Project) Masterplan is projected to cost between $150 to $200 million and will extend approximately eight miles along the Los Angeles River (LAR), from State Route 91 to Ocean Boulevard. The Project consists of a stormwater treatment facility near the Shoemaker Bridge and will improve Long Beach’s water quality and create a wetlands area, which benefits aquatic life and recreational beach activities. By capturing and cleaning stormwater, the Project will reduce pollution that enters the LAR and City beaches. The recycled water will irrigate City parks and sustain a wetlands habitat that has been proposed as a part of this Project. These activities ensure compliance with the City’s National Pollutant Discharge Elimination System (NPDES) permit.
In April 2016, the City Council authorized a cooperative agreement with the California Department of Transportation to receive $28 million to build the Project. In January 2017, the City also received $2 million in Proposition 1 (Water Bond) Tier 1 grant funds from the San Gabriel and Lower Los Angeles Rivers and Mountains Conservancy to build five acres of wetlands as part of the Project. The first phase of the Project will use both of these funds to build the treatment facility and nearby wetlands.
The primary source of pollutants captured by the Project is urban run-off. Common water treatment methods use chemicals to clean filters, which produces a hazardous waste stream. The proposed Purifics treatment system purifies water with a patented treatment system consisting of ceramic ultra-filtration (CUF) and photocatalytic (Photo-Cat) units, which significantly reduces the waste stream. CUF removes oil and grease, turbidity, and various heavy metals. The ceramic filters are made of silicon carbide, which are second only to a diamond in strength, and have a lifespan of over 25 years. The proprietary system self-cleans with a “dynamic shock” process, which minimizes the need for cleaning with chemicals. The system is fully-enclosed with no odors, minimizing any potential community impacts. The system can be fully-operated remotely, which reduces operations and maintenance costs. The system is also fully- pressurized and is easily expanded by installing additional modules.
City Charter Section 1801 requires that contracts for City purchases be awarded to the lowest responsible bidder after a competitive bid process, but allows for awards without a competitive bid process if accompanied by a Resolution adopted by the City Council.
Authorization is therefore requested to execute a contract without advertising for bids with Purifics to purchase its proprietary water treatment system for the Project. The Project needs to treat a wide range of pollutants, including brackish (saline) and non-brackish water sources, using minimal amounts of chemicals and waste product to meet the City’s NDPES permit requirements. CUF/Photo-Cat is the only system that can meet these needs. Additionally, the facility must operate within a wide flow range and must support expansion of capacity for future phases. The Purifics proprietary system meets all the requirements for the Project, controls 30 patents worldwide, and has no known equal. Various government agencies, such as the United States Navy (USN) and National Aeronautics and Space Administration, have used the Purifics systems with long-term success.
Staff negotiated a purchase proposal with Purifics in the amount of $4,410,000 for their proprietary system, which will be destination duty paid. Contingency, shipping, and sales tax will be added to the final cost. Purchase terms include patent protections that prohibit the modification, relocation, or selling of the equipment without the approval of Purifics. Staff evaluated the proposal against other treatment system options and found this approach to be reasonable, as well as likely to provide additional operations and maintenance savings.
This matter was reviewed by Deputy City Attorney Amy R. Webber on March 6, 2018 and by Budget Analysis Officer Julissa José-Murray on March 16, 2018.
TIMING CONSIDERATIONS
City Council action is requested on April 3, 2018, to ensure successful delivery of the LB-MUST Project in accordance with funding guidelines and NDPES permit requirements.
FISCAL IMPACT
The cost of the stormwater filtration equipment will not exceed $5,370,728, inclusive of a 10 percent contingency, shipping and sales tax. Sufficient funds are budgeted in the Capital Projects Fund (CP) in the Public Works Department (PW). There is no local job impact associated with this recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH PURIFICS WATER, INC. WITHOUT ADVERTISING FOR BIDS, FOR THE PURCHASE AND DELIVERY OF STORMWATER
FILTRATION EQUIPMENT FOR THE LONG BEACH MUNICIPAL URBAN STORMWATER TREATMENT PROJECT, IN AN AMOUNT NOT TO EXCEED $4,882,480
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
CRAIG A. BECK
DIRECTOR OF PUBLIC WORKS
APPROVED
PATRICK H. WEST
CITY MANAGER