REPORT TO COUNCIL
SUBJECT
Title
Authorize Modification of an Existing Contract and Award of Contract for Chronic Toxicity Testing Services at the Water Pollution Control Plant (F14-102)
Report
REPORT IN BRIEF
Approval is requested to modify an existing five-year contract with Pacific Eco-Risk Environmental Consulting and Testing for chronic toxicity testing services, increasing the value by $25,000, from $480,000 to $505,000. The existing contract expires September 15, 2014. Approval is also requested to award a new three-year contract beginning September 16 to Pacific Eco-Risk in the amount of $284,460, and to delegate authority to the City Manager to extend the contract for an additional two-year period in the amount of $220,540. The total value of the new five-year contract will not exceed $505,000.
ENVIRONMENTAL REVIEW
N/A
BACKGROUND AND DISCUSSION
Following a Request for Proposals (RFP) process, the City Council approved a three-year contract in the amount of $290,000 to Pacific Eco-Risk in September 2009 for toxicity testing to meet National Pollutant Discharge Elimination System (NPDES) permit requirements (RTC No. 09-224). As part of the approval, Council also delegated authority to the City Manager to renew the contract for two additional one-year periods, which added $95,000 per year for a total of $480,000.
Due to accelerated monitoring and Toxicity Identification Evaluation (TIE) studies required by the NPDES permit, an additional $25,000 is required for the final year of the contract, bringing the grand total to $505,000. The additional testing was in response to persistent toxicity detected in the WPCP effluent in recent months.
Customarily, and consistent with best practice, services such as toxicity testing are competitively bid every five to seven years through the RFP process. When the RFP was conducted in 2009, three firms submitted proposals: Block Environmental Services, Pacific Eco-Risk, and ToxScan. At that time, ToxScan, Inc. was awarded a backup contract in the amount of $75,000 under the City Manager's award authority.
Both Block Environmental and ToxScan are now closed, with Pacific Eco-Risk the only known firm in the area who can provide the level of specialized biological testing required to meet the NPDES permit regulations (which the City's Lab is not certified to perform). Additionally, Pacific Eco-Risk is the only aquatic toxicology laboratory in California that is nationally accredited (NELAP), and operates under a rigorous quality assurance program.
In light of these factors, it is recommended that a new three-year contract be awarded to Pacific Eco-Risk, with an option to renew for an additional two years. Section 2.08.070(b)(1) of the Sunnyvale Municipal Code allows a competitive bid exemption for this type of specialized service.
FISCAL IMPACT
The total value of the current, amended contract will be $505,000. This includes the original three year contract amount of $290,000, the two (2) one-year extensions totaling $190,000, and the requested increased contract amount of $25,000. The new agreement will not exceed $505,000 over the five-year period. This includes $284,460 for the first three years, and $220,540 for the final two years. The last two years of the agreement are higher on an annualized basis because specialized effluent testing in the estimated amount of $30,900 will be needed for the NPDES permit renewal at some point within this time period.
If an additional toxicity testing firm can be identified, a backup contract may be awarded under the City Manager's contract award authority.
Budgeted funds are available in operating program 366 (Regulatory Programs).
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
1) Approve modification to an existing contract with Pacific Eco-Risk to increase the not-to-exceed amount value by $25,000, to a total of $505,000; 2) Award a three-year contract to Pacific Eco-Risk in an amount not-to-exceed $284,460; and 3) Delegate authority to the City Manager to extend the contract for a an additional two-year period in an amount not-to-exceed $220,540, provided that pricing and service remain acceptable to the City.
Staff
Prepared by: Pete Gonda, Purchasing Officer
Reviewed by: Timothy J. Kirby, Assistant Director, Department of Finance
Reviewed by: John Stufflebean, Director, Environmental Services
Reviewed by: Robert A. Walker, Assistant City Manager
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Draft Third Amendment
2. Draft Agreement for Services