21-0504_STERLING WATER TECHNOLOGIES, LLC_Agenda Report_E6City of San Juan Capistrano
Agenda Report
TO: Honorable Mayor and Members of the City Council
FROM: Benjamin Siegel, City Manager
SUBMITTED BY: Charlie View, Assistant City Manager
PREPARED BY: Noreen Swiontek, Senior Management Analyst
DATE: May 4, 2021
SUBJECT: Utility Department Contract Extensions Through Fiscal Year 2021-
2022 to Accommodate the Water and Sewer Utility Annexation
Schedule
RECOMMENDATION:
1.Waive the formal request for proposal process pursuant to Municipal Code Title 3,
Chapter 4, Section 3-4.310 (e) for supplies and services associated with water and
sewer utilities operations; and,
2.Approve and authorize the City Manager to execute one-year agreement extensions
through June 30, 2022, at the current agreement rates for services and supplies
related to the water and sewer operations with the following firms:
•Brenntag Pacific Inc. for various chemical products;
•JCI Jones Chemicals Inc. for various chemical products;
•Sterling Water Technologies LLC for various chemical products;
•King Lee Chemical Company for various chemical products;
•Environmental Compliance Inspection Services (ECIS) for fats, oil, grease (FOG)
and food service establishments NPDES inspection services increasing the
agreement compensation $21,316 for one additional year;
•RT Lawrence Corporation for lockbox services increasing the agreement
compensation $4,000 for one additional year;
•NCR Payment Solutions, FL, LLC for debit and credit card processing services in
an amount not to exceed $165,000 annually; and,
•Santa Margarita Water District for water meter reading services in an amount not
to exceed $95,000 annually.
5/4/2021
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City Council Agenda Report
May 4, 2021
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EXECUTIVE SUMMARY:
The City continues to work toward transferring its water and sewer utility systems to the
Santa Margarita Water District (SMWD). Several of the City’s agreements associated with
water and sewer operations will expire on June 30, 2021. Staff has previously solicited
for, and received, bids for supplies and services from the firms noted above. Conducting
another bid solicitation process with the approaching transfer of the water and sewer utility
systems to SMWD would not be practical. Each of the firms listed above have agreed to
extend agreements with the City at the current rates established in their agreements.
Staff recommends that the term of the City’s agreements for water and sewer utilities
systems be extended to June 30, 2022, to ensure continued operational services until the
annexation is complete. In the event that the City’s water and sewer systems are
transferred to SMWD during the one-year term of the proposed amendments, the
agreements would be assigned to the successor agency or terminated upon a 30-day
notice as provided by the terms of the original agreements.
FISCAL IMPACT:
There are sufficient funds in the Utilities Department proposed budget for Fiscal Year
2021-22 to accommodate the execution of these amendments.
ENVIRONMENTAL IMPACT:
The recommended action would not be subject to CEQA pursuant to Section 15060(c)(3)
of CEQA Guidelines because the action is not a project as defined in Section 15378 of
the CEQA Guidelines, and the action would have no potential for resulting in physical
change to the environment, directly or indirectly.
PRIOR CITY COUNCIL REVIEW:
Not applicable.
COMMISSION/COMMITTEE/BOARD REVIEW AND RECOMMENDATIONS:
This item does not require commission or committee review.
NOTIFICATIONS:
Brenntag Pacific Inc.
JCI Jones Chemicals Inc.
Sterling Water Technologies LLC.
King Lee Chemical Company
Environmental Compliance Inspection Services
RT Lawrence Corporation
NCR Payment Solutions, FL, LLC
Santa Margarita Water District
City Council Agenda Report
May 4, 2021
Page 3 of 3
ATTACHMENTS:
Attachment 1 – Brenntag Pacific Inc. Amendment No. 1
Attachment 2 – JCI Jones Chemicals, Inc. Amendment No. 1
Attachment 3 – Sterling Water Technologies LLC Amendment No. 1
Attachment 4 – King Lee Chemical Company Amendment No. 3
Attachment 5 – Environmental Compliance Inspection Services Amendment No. 3
Attachment 6 – RT Lawrence Corporation Amendment No. 2
Attachment 7 – NCR Payment Solutions, FL, LLC Amendment No. 2
Attachment 8 – Santa Margarita Water District Amendment No. 2
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AMENDMENT NO. 1
AGREEMENT FOR PURCHASE OF CHEMICALS
BETWEEN
THE CITY OF SAN JUAN CAPISTRANO
AND
BRENNTAG PACIFIC, INC.
1. Parties and Date.
This Amendment No. 1 to the Agreement For Purchase of Chemicals is made and entered
into as of this 1st day of July, 2021, by and between the City of San Juan Capistrano, a municipal
organization organized under the laws of the State of California with its principal place of business
at 32400 Paseo Adelanto, San Juan Capistrano, California 92675 (“City”) and Brenntag Pacific, Inc.,
a Delaware corporation with its principal place of business at 10747 Patterson Place, Santa Fe
Springs, CA 90670 (“Supplier”"). City and Supplier are sometimes individually referred to as
“Party” and collectively as “Parties.”
2. Recitals.
2.1 Agreement. The City and Supplier have entered into an agreement entitled
“AGREEMENT FOR THE PURCHASE OF CHEMICALS” dated June 4, 2019, (“Agreement”) for
the purpose of retaining the services of Supplier to provide Ammonium Hydroxide 19%, Sodium
Permanganate 20%, and Sodium Bisulfite 25% to the City for use at its Groundwater Recovery
Plant.
2.2 Amendment Purpose. The City and Supplier desire to amend the Agreement to
extend the term of the Agreement through June 30, 2022.
2.3 Amendment Authority. This Amendment No. 1 is authorized pursuant to Section 22
of the Agreement.
3. Terms.
3.1 Amendment. Section 1 of the Agreement is hereby amended in its entirety to read as
follows:
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1. Agreement Duration. This Agreement shall commence on July 01, 2019 and
shall be in effect up to and including June 30, 2022.
3.2 Continuing Effect of Agreement. Except as amended by this Amendment No. 1, all
other provisions of the Agreement remain in full force and effect and shall govern the actions of the
parties under this Amendment No. 1. From and after the date of this Amendment No. 1, whenever
the term “Agreement” appears in the Agreement, it shall mean the Agreement as amended by this
Amendment No. 1.
3.3 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they
have each received adequate and independent consideration for the performance of the obligations
they have undertaken pursuant to this Amendment No. 1.
3.4 Severability. If any portion of this Amendment No. 1 is declared invalid, illegal, or
otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall
continue in full force and effect.
3.5 Counterparts. This Amendment No. 1 may be signed in counterparts, each of which
shall constitute an original.
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SIGNATURE PAGE
FOR AMENDMENT NO. 1
AGREEMENT FOR PURCHASE OF CHEMICALS
BETWEEN THE CITY OF SAN JUAN CAPISTRANO
AND BRENNTAG PACIFIC, INC.
CITY OF SAN JUAN CAPISTRANO
Approved By:
Benjamin Siegel
City Manager
Date
Attested By:
Maria Morris, City Clerk
Approved As To Form:
City Attorney
BRENNTAG PACIFIC, INC.
Signature
Name
Title
Date
Laura Tua
Municipal Bid Manager
April 14, 2021
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AMENDMENT NO. 3
TO THE PROFESSIONAL SERVICES AGREEMENT FOR FAT’S, OILS AND GREASE
(FOG) AND FOOD SERVICE ESTABLISHMENT (FSE) NATIONAL POLLUTION
DISCHARGE ELIMINATION SYSTEM (NPDES) INSPECTION SERVICES
BETWEEN
THE CITY OF SAN JUAN CAPISTRANO
AND
ENVIRONMENTAL COMPLIANCE INSPECTION SERVICES
1. Parties and Date.
This Amendment No. 3 to the “Professional Services Agreement For Fats, Oils and Grease
(FOG) and Food Service Establishment (FSE) National Pollution Discharge Elimination System
(NPDES) Inspection Services” is made and entered into as of this 1st day of July, 2021 by and
between the City of San Juan Capistrano, a municipal organization organized under the laws of the
State of California with its principal place of business at 32400 Paseo Adelanto, San Juan
Capistrano, California 92675 (“City”) and Environmental Compliance Inspection Services, a Sole
Proprietorship, with its principal place of business at 33322 Marina Vista Dr. Dana Point, CA 92629
(“Consultant”). City and Consultant are sometimes individually referred to as “Party” and
collectively as “Parties.”
2. Recitals.
2.1 Consultant. The City and Consultant have entered into an agreement entitled
“Professional Services Agreement For Fats, Oils and Grease (FOG) and Food Service Establishment
(FSE) National Pollution Discharge Elimination System (NPDES) Inspection Services” dated
September 5, 2017 (“Agreement”) for the purpose of retaining the services of Consultant to provide
FOG and FSE NPDES Inspections.
2.2 Amendment Purpose. The City and Consultant desire to amend the Agreement to
extend the term and increase the not-to-exceed compensation amount under the Agreement. The
parties have heretofore entered into Amendment No. 1 dated September 5, 2019 and Amendment
No. 2 dated July 1, 2020.
2.3 Amendment Authority. This Amendment No. 3 is authorized pursuant to Section 23
of the Agreement.
3. Terms.
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3.1 Amendment. Section 1 of the Agreement is hereby amended in its entirety to
read as follows:
1. Services.
Consultant shall provide the City with the services described in the Scope of Services
attached hereto as Exhibits A, A-1, and A-2.
3.2 Amendment. Section 2 of the Agreement is hereby amended in its entirety to read as
follows:
2. Compensation.
a. Subject to paragraph 2(b) below, the City shall pay for services specified in Exhibits
A, A-1, and A-2 in accordance with the Schedule of Charges set forth in Exhibits B, B-1, and
B-2, respectively.
b. In no event shall the total amount paid for services rendered by Consultant under this
Agreement exceed the sum of One Hundred Nineteen Thousand Eight Hundred and Sixty
Dollars ($119,860). This amount is to cover all printing and related costs, and the City will
not pay any additional fees for printing expenses. Periodic payments shall be made within 30
days of receipt of an invoice which includes a detailed description of the work performed.
Payments to Consultant for work performed will be made on a monthly billing basis.
3.3 Amendment. Section 5 of the Agreement is hereby amended in its entirety to read as
follows:
5. Time of Performance.
Consultant shall perform its services in a prompt and timely manner and shall commence
performance upon receipt of written notice from the City to proceed (“Notice to Proceed”).
Consultant shall complete the services required hereunder on or before June 30, 2022. The
Notice to Proceed shall set forth the date of commencement of work.
3.4 Continuing Effect of Agreement. Except as amended by Amendment No. 1,
Amendment No. 2, and this Amendment No. 3, all other provisions of the Agreement remain in full
force and effect and shall govern the actions of the parties under this Amendment No. 3. From and
after the date of this Amendment No.3, whenever the term “Agreement” appears in the Agreement, it
shall mean the Agreement as amended by Amendment No. 1. Amendment No. 2, and this
Amendment No. 3.
3.5 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they
have each received adequate and independent consideration for the performance of the obligations
they have undertaken pursuant to this Amendment No. 3.
3.6 Severability. If any portion of this Amendment No. 3 is declared invalid, illegal, or
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otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall
continue in full force and effect.
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EXHIBIT A-2
REVISED SCHEDULE OF SERVICES
Consultant shall complete all required Bi-Annual Grease Control Devise Inspections spaced out to
occur every 6 months and to begin at a city approved month once the contract is awarded.
Consultant will provide updated Excel format inspections database to the City FOG Program
Manager within two weeks of the inspection program completion.
Consultant shall complete the required ANNUAL FES-NPDES inspection to begin at a city
approved month once the contract is awarded. Consultant will provide the updated Excel format
inspections database to the City FOG/NPDES Program Manager within two weeks of the inspections
program.
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EXHIBIT B-2
SCHEDULE OF CHARGES
Item No. Description Quantity Unit Cost Total Annual
Item Cost
Total Cost for
Two Years
1.1 Grease Control
Device
Inspections (Bi-
annual)
199
Lids/devices
$ 17 per lid $6,766
($3,383 X 2)
NA
1.2 Food Service
Establishment
(FSE) NPDES
Inspections
(annual)
180 FSE’s
$ 80 per FSE $ 14,400
NA
Project Total $21,166 NA
Total In Writing:
The total Annual (2021-22) cost for the GCDI Program will be Six thousand seven hundred and
sixty six dollars per year.
The total Annual (2021-22) cost for the FSE-NPDES Program will be Fourteen thousand four
hundred dollars per year.
Hourly Rate for any meeting(s), consultation or other work relevant to the Scope of Work as
required by this proposal shall be Seventy-Five dollars ($75) per hour.
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AMENDMENT NO. 2
TO THE PROFESSIONAL SERVICES AGREEMENT
BETWEEN
THE CITY OF SAN JUAN CAPISTRANO
AND
RT LAWRENCE CORPORATION
1. Parties and Date.
This Amendment No. 2 to the Professional Services Agreement is made and entered into as
of this 1st day of July, 2021, by and between the City of San Juan Capistrano, a municipal
organization organized under the laws of the State of California with its principal place of business
at 32400 Paseo Adelanto, San Juan Capistrano, California 92675 (“City”) and RT Lawrence
Corporation, a California Corporation, with its principal place of business 7740 Painter Avenue,
Suite 100, Whittier, California 90602 (“Contractor”). City and Contractor are individually referred to
as “Party” and collectively as “Parties.”
2. Recitals.
2.1 Contractor. The City and Contractor have entered into an agreement entitled
“Professional Services Agreement” dated July 1, 2015, (“Agreement”) for the purpose of retaining
the services of Contractor to provide Lockbox Services.
2.2 Amendment Purpose. The City and Contractor desire to amend the Agreement to
extend the term for an additional one-year term ending June 30, 2022. All other terms and conditions
will remain the same as noted in the original agreement.
3. Terms.
3.1 Amendment. The following sections of the Agreement are hereby amended in their
entirety to read as follows:
Section 2 - Term.
This Agreement shall commence on the effective date and shall terminate, and all services
required hereunder shall be completed, no later than June 30, 2022, unless earlier
terminated as provided herein. Contractor shall complete the Services within the term of
this Agreement and shall meet any other established schedules and deadlines. The Parties
may, by mutual written consent, extend the term of this Agreement, if necessary, to
complete the Services.
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Section 3 - Compensation.
Total compensation for services under this Agreement shall not exceed $59,000 for the
seven-year term of the agreement, as amended, at the rates set forth in Exhibit C of the
original agreement, the effective date of which was July 1, 2015.
3.2 Continuing Effect of Agreement. Except as amended by this Amendment No. 2, all
other provisions of the Agreement remain in full force and effect and shall govern the actions of the
parties under this Amendment No. 2. From and after the date of this Amendment No. 2, whenever
the term “Agreement” appears in the Agreement, it shall mean the Agreement as amended by this
Amendment No. 2.
3.3 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they
have each received adequate and independent consideration for the performance of the obligations
they have undertaken pursuant to this Amendment No. 2.
3.4 Severability. If any portion of this Amendment No. 2 is declared invalid, illegal, or
otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall
continue in full force and effect.
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SIGNATURE PAGE FOR AMENDMENT NO. 2 TO PROFESSIONAL SERVICES
AGREEMENT
BETWEEN THE CITY OF SAN JUAN CAPISTRANO
AND
RT LAWRENCE CORPORATION
CITY OF SAN JUAN CAPISTRANO
Approved By:
Ben Siegel
City Manager
Date
Attested By:
Maria Morris, City Clerk
Approved As To Form:
City Attorney
RT LAWRENCE CORPORATION
Signature
Name
Title
Date
John Phillips
Director
4/13/2021
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Attachment 7
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3.2 Continuing Effect of Agreement. Except as amended by this Amendment No. 2, all
other provisions of the Agreement remain in full force and effect and shall govern the actions of the
parties under this Amendment No. 2. From and after the date of this Amendment No. 2, whenever
the term “Agreement” appears in the Agreement, it shall mean the Agreement as amended by this
Amendment No. 2.
3.3 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they
have each received adequate and independent consideration for the performance of the obligations
they have undertaken pursuant to this Amendment No. 2.
3.4 Severability. If any portion of this Amendment No. 2 is declared invalid, illegal, or
otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall
continue in full force and effect.
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AMENDMENT NO. 2
TO THE PERSONAL SERVICES AGREEMENT
BETWEEN
THE CITY OF SAN JUAN CAPISTRANO
AND
SANTA MARGARITA WATER DISTRICT
1. Parties and Date.
This Amendment No. 2 to the Personal Services Agreement is made and entered into as of
this 1st day of July, 2021, by and between the City of San Juan Capistrano, a municipal organization
organized under the laws of the State of California with its principal place of business at 32400
Paseo Adelanto, San Juan Capistrano, California 92675 (“City”) and Santa Margarita Water District,
a public agency with its principal place of business at 26111 Antonio Parkway, Rancho Santa
Margarita, CA 92688, (“Consultant”). City and Consultant are sometimes individually referred to as
“Party” and collectively as “Parties.”
2. Recitals.
2.1 The City and Consultant have entered into an agreement entitled “Personal Services
Agreement dated February 17, 2015, (“Agreement”) for the purpose of retaining the services of
Consultant to provide Municipal Water Meter Reading Services.
2.2 Amendment Purpose. The City and Consultant desire to amend the Agreement to
extend the Term.
2.3 Amendment Authority. This Amendment No. 2 is authorized pursuant to Section 2 of
the Agreement.
3. Terms.
3.1 Amendment. Section 2 of the Agreement is hereby amended in its entirety to read as
follows: The Term of the Agreement shall commence on the effective date and shall terminate, and
all services required hereunder shall be completed, no later than June 30, 2022.
3.2 Continuing Effect of Agreement. Except as amended by this Amendment No.2, all
other provisions of the Agreement remain in full force and effect and shall govern the actions of the
parties under this Amendment No.2. From and after the date of this Amendment No.2, whenever the
term “Agreement” appears in the Agreement, it shall mean the Agreement as amended by this
Amendment No. 2.
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3.3 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they
have each received adequate and independent consideration for the performance of the obligations
they have undertaken pursuant to this Amendment No. 2.
3.4 Severability. If any portion of this Amendment No. 2 is declared invalid, illegal, or
otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall
continue in full force and effect.
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