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CITY COUNCIL STAFF REPORT
DATE: JUNE 5, 2023 CONSENT CALENDAR
SUBJECT: APPROVE AMENDMENT NO. 1 TO AGREEMENT NO. A9186 WITH
NALCO COMPANY, LLC FOR WATER TREATMENT CHEMICALS AND
SERVICES
FROM: Scott C. Stiles, City Manager
BY: Department of Maintenance and Facilities
SUMMARY:
This action will approve Amendment No. 1 to Agreement No. A9186 with Nalco Company,
LLC in the amount of $300,000 for a revised contract amount not to exceed $375,000 for
water treatment chemicals and services and extending the agreement term through June
30, 2025.
RECOMMENDATION:
1. Approve Amendment No. 1 to Agreement No. A9186 (Attachment A) with Nalco
Company, LLC to provide water treatment chemicals and services in an additional
amount of $300,000 for a total revised contract amount not to exceed $375,000
and extending the term through June 30, 2025.
2. Authorize the City Manager or designee to execute all necessary documents.
BUSINESS PRINCIPAL DISCLOSURE:
According to the Public Integrity Disclosure form (Attachment B) Nalco Company, LLC
is a limited liability company and registered in the State of Delaware.
BACKGROUND:
The City required the services of a water treatment chemicals and services company for
operations and maintenance of the Municipal Cogeneration Plant, Fire Station No. 2,
CVEP, Airport, City Hall, Police Station, Police Training Building, Sunrise Plant, Leisure
Center, Pavilion, and Library. By utilizing Palm Springs Municipal Code Section 7.09.010,
“Cooperative Purchasing Programs”, the City was allowed to obtain water treatment
Item 1I - Page 1
City Council Staff Report
June 5, 2023 -- Page 2
Amend Water Treatment Chemicals and Services Agreement
chemicals through Nalco Company, LLC (Nalco), under General Services Administration
Contract No. GS-07F-0176Y.
Therefore, the City entered into a Contract Services Agreement with Nalco on July 1,
2022, in an amount not to exceed $75,000, through June 30, 2023, to meet the Facilities
and Maintenance Departments immediate needs.
STAFF ANALYSIS:
Staff is requesting approval of Amendment No. 1 in the amount of $300,000 for a revised
contract amount not to exceed $375,000, and extending the agreement term through
June 30, 2025, for water treatment chemicals and services.
This Contract Services Agreement operates as an on-call service; as such, staff places
chemical orders as each of the eleven facilities requires. Facilities Maintenance estimates
the necessary water treatment chemicals and services to be $125,000 annually.
Therefore, increasing the contract to a not to exceed amount of $375,000, and extending
the term of the contract through June 30, 2025, will allow for current and future water
treatment needs to be met.
ENVIRONMENTAL ASSESSMENT:
The requested City Council action is not a “Project” as defined by the California
Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the
whole of an action, which has a potential for resulting in either a direct physical change in
the environment, or a reasonably foreseeable indirect physical change in the
environment. The requested action is to approve contracts for the above-mentioned
services, and is exempt from CEQA pursuant to Section 15378(b), in that a “Project” does
not include: (5) Organizational or administrative activities of governments that will not
result in direct or indirect physical changes in the environment.
ALIGNMENT WITH STRATEGIC PLANNING:
Approval of this action supports City Council priority 2A, Improve City Facilities.
FISCAL IMPACT:
Sufficient funds are budgeted and available in the current Fiscal Year 2022-23 account
5206570-50115.
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City Council Staff Report
June 5, 2023 -- Page 3
Amend Water Treatment Chemicals and Services Agreement
REVIEWED BY:
Assistant Director of Maintenance & Facilities: Heather MacPherson
Procurement and Contracting Manager: Kim Baker
Assistant City Manager: Teresa Gallavan
City Manager: Scott Stiles
ATTACHMENTS:
A. Amendment No. 1
B. Public Integrity Disclosure
Item 1I - Page 3
ATTACHMENT A
Item 1I - Page 4
AMENDMENT NO. 1 TO CONTRACT SERVICES AGREEMENT NO. A9186
FOR WATER TREATMENT CHEMICALS AND SERVICES
This Amendment No. 1 to the Contract Services Agreement (A9186), (“Amendment
No. 1”), is made and entered into this _____ day of _____________, 2023, by and between
the City of Palm Springs, a California charter city and municipal corporation, hereinafter
designated as the City, and Nalco Company LLC, a Delaware Limited Liability Company,
hereinafter designated as the Contractor. City and Contractor are individually referred to as
“Party” and are collectively referred to as the “Parties”.
RECITALS
A. City requires the services of a licensed contractor for water treatment chemicals
and services, (“Project”).
B. On May 1, 2022, the City Manager approved A9186, commencing July 1, 2022,
and continuing through June 30, 2023, in reference to the competitively solicited contract
through General Service Administration (GSA) Contract GS-07F-0176Y, with Contractor, for
a total contract amount not to exceed $75,000.
C. Parties desire to extend the Term of A9186 two years through June 30, 2025, and
add $300,000, for a total contract amount not to exceed $375,000.
D. Contractor desires to perform said services on the terms and conditions set forth
in this Amendment.
In consideration of these promises and mutual obligations, covenants, and conditions,
the Parties agree as follows:
AGREEMENT
SECTION 1. The true and correct recitals above are incorporated by this reference herein
as the basis for this Amendment No. 1.
SECTION 2. 3.1 Compensation and Payment. Is hereby replaced in its entirety as follows:
“3.1 Compensation and Payment. Contract shall be compensated and reimbursed for
the services rendered under this Agreement in accordance with the schedule of fees set
forth in Exhibit “A”. The total amount of Compensation shall not exceed $375,000.”
Item 1I - Page 5
SECTION 3. 4.4 Term. Is hereby replaced in its entirety as follows:
“4.4 Term. Unless earlier terminated in accordance with Section 4.5 of this Agreement, this
Agreement shall continue in full force and effect for a period of one year, commencing on July
1, 2022, continuing through June 30, 2025, unless extended by mutual written agreement of the
Parties.”
SECTION 4. Full Force and Effect. All terms, conditions, and provisions of the Contract
Services Agreement A9186, unless specifically modified herein, shall continue in full force and
effect. In the event of any conflict or inconsistency between the provisions of this Amendment
No. 1 and any provisions of the Contract Services Agreement A9186, the provisions of this
Amendment No. 1 shall in all respects govern and control.
SECTION 5. The persons executing this Amendment No. 1 on behalf of the Parties hereto
warrant that (I) such party is duly organized and existing, (ii) they are duly authorized to execute
and deliver this Amendment No. 1 on behalf of said party, (iii) by so executing this Amendment
No. 1, such party is formally bound to the provisions of this Amendment No. 1, and (iv) the
entering into this Amendment No. 1 does not violate any provision of any other agreement to
which said Party is bound.
Except as specifically amended by this Amendment No. 1, all terms and provisions of
Agreement No. A9186 remain in full force and effect.
[SIGNATURES ON FOLLOWING PAGE]
Item 1I - Page 6
SIGNATURE PAGE TO AMENDMENT NO. 1 (A9186) BY AND BETWEEN THE CITY OF
PALM SPRINGS AND NALCO COMPANY LLC
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates
stated below.
CONTRACTOR:
By:___________________________ By:____________________________________
Signature Signature
(2nd signature required for Corporations)
Date: Date:
CITY OF PALM SPRINGS:
APPROVED BY CITY COUNCIL:
Date: _______ Item No.
APPROVED AS TO FORM: ATTEST:
By: ___________________________ By:
City Attorney City Clerk
APPROVED:
By: _______________________________ Date:
City Manager – over $50,000
Deputy/Assistant City Manager – up to $50,000
Director – up to $25,000
Manager – up to $5,000
Item 1I - Page 7
ATTACHMENT B
Item 1I - Page 8
Item 1I - Page 9PUBLIC INTEGRITY DISCLOSURE APPLICANT DISCLOSURE FORM 1. Name of Entity 2. 3. 4. Nalco Company, LLC Address of Entity (Principle Place of Business) 1601 West Diehl Road Naperville, IL 60563-1198 Local or California Address (if different than #2) State where Entity is Registered with Secretary of State Delaware If other than California, is the Entity also registered in California? n Yes rx7 No 5. Type of Entity D Corporation [i] Limited Liability Company D Partnership D Trust D Other (please specify) 6. Officers, Directors, Members, Managers, Trustees, Other Fiduciaries (please specify) Note: If any response is not a natural person, please identify all officers, directors, members, managers and other fiduciaries for the member, manager, trust or other entity Christophe Beck ___________________ [i] Officer D Director D Member D Manager [name] D General Partner D Limited Partner · •Other ___________ _ Scott Kirkland ___________________ ~ Officer D Director D Member D Manager [name] D General Partner D Limited Partner •Other ____________ _ Angela Busch ___________________ D Officer D Director D Member [i] Manager (Revised 09 13 18) [name] D General Partner D Limited Partner D Other _____________ _ CITY OF PALM SPRINGS -PUBLIC INTEGRITY DISCLOSURE APPLICANT DISCLOSURE FORM Page 1 of 2
Item 1I - Page 107. Owners/Investors with a 5% beneficial interest in the Aoolicant Entity or a related entity EXAMPLE JANEDOE 50%, ABC COMPANY, Inc. [name of owner/investor] [percentage of beneficial interest in entity and name of entity] A. The Vanguard Group, Inc. 7.5% [name of owner/investor] [percentage of beneficial interest in entity and name of entity] B. Blackrock Fund Advisors 4.24% [name of owner/investor] [percentage of beneficial interest in entity and name of entity] C. Wellington Management Co. LLP 3.98% [name of owner/investor] [percentage of beneficial interest in entity and name of entity] D. SSgA Funds Management, Inc. 3.90% [name of owner/investor] [percentage of beneficial interest in entity and name of entity] E. Aristotle Capitol Management LLC 1.86% [name of owner/investor] [percentage of beneficial interest in entity and name of entity] I DECLARE UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT. Signature of Disclosing Party, Printed Name, Title Date (Revised 09 13 18) CITY OF PALM SPRINGS -PUBLIC INTEGRITY DISCLOSURE APPLICANT DISCLOSURE FORM Page 2 of 2
Item 1I - Page 11Signature: ~~.J---:-.1..lqd~a._ __ _ Email: gary.hagler@ecolab.com