REPORT TO COUNCIL
SUBJECT
Title
Award of an On-Call Service Agreement to Telestar Instruments in the Amount of $500,000 for On-Call Services for the Water Pollution Control Plant (F24-083)
Report
REPORT IN BRIEF
Approval is requested to award an agreement to provide on-call services for the Environmental Services Department (ESD), Water Pollution Control Plant Division for an initial two-year period to Telestar Instruments, with a contract amount not to exceed $500,000. The contract will provide on-call services as required by ESD.
Approval is also requested to authorize the City Manager to increase the not-to-exceed contract amounts and to extend the term of the contracts for up to two (2) additional two (2) year periods, subject to available budgeted funding, need, and acceptable pricing and service.
EXISTING POLICY
Pursuant to Section 2.08.040 of the Sunnyvale Municipal Code (SMC), City Council approval is required for contracts exceeding $250,000.
Pursuant to Chapter 2.08 of the Sunnyvale Municipal Code, contracts for this type of service are awarded pursuant to a Request for Qualifications (RFQL) best value process, unless otherwise exempt from the competitive bidding process.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines sections 15378(b)(4) and 15378(b)(5) in that is a fiscal and organizational activity that will not result in direct or indirect changes in the environment.
BACKGROUND AND DISCUSSION
The Sunnyvale Cleanwater Program is working to rebuild the existing Water Pollution Control Plant (WPCP), which was initially built in 1956. With additions over the subsequent 15-20 years, it has grown to a tertiary treatment facility with an average dry weather flow rate of 14 million gallons per day (MGD) and a permitted average dry weather flow rate of 29.5 MGD. An asset condition assessment conducted in 2006 identified critical plant structures as at-risk and in need of immediate rehabilitation. Based on this assessment, the City began implementing several rehabilitation projects.
New Supervisory Control and Data Acquisition (SCADA) and Programmable Logic Controller (PLC) systems are currently being installed as part of the rehabilitation of the plant. On-call contractor assistance is needed to maintain, repair, and upgrade the various SCADA /PLC systems to the new standards.
A request for qualifications (RFQL) process was utilized to solicit statement of qualifications (SOQ) submittals from qualified contractors for on-call service support. The RFQL was advertised on the City’s DemandStar public procurement network and distributed to the Bay Area Builder’s Exchange on February 5, 2024. Seventeen (17) contractors requested bid documents. Two (2) responsive SOQs were received on February 29, 2024.
SOQs were reviewed and ranked by an evaluation team consisting of ESD staff. The SOQs were evaluated on their qualifications, experience, and potential resources available to assist with future projects.
Following the written evaluation of the SOQs, staff is recommending an initial two-year term for the contract with an option to extend the contract for up to two (2) additional two (2) year periods to Telestar Instruments.
FISCAL IMPACT
Budgeted funding is available in Project 833220 - Repairs to the Tertiary Process and the WPCP Maintenance Budget 14602 funded in the Wastewater Management Enterprise Fund.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the NOVA Workforce Services reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
RECOMMENDATION
Recommendation
Take the following actions:
- Award an on-call service agreement in substantially the same form as Attachment 1 to the report to Telestar Instruments in a not-to-exceed amount of $500,000;
- Authorize the City Manager to execute the contract when all necessary conditions have been met;
- Authorize the City Manager to increase the contract up to budgeted amounts;
- Authorize the City Manager to extend the contract for up to two (2) additional two (2) year periods based upon available funding, need, and acceptable pricing and service; and
- Authorize the City Manager to modify the contract compensation schedule subject to negotiated pricing.
Staff
Prepared by: David Battaglia, Purchasing Officer
Reviewed by: Tim Kirby, Director of Finance
Reviewed by: Ramana Chinnakotla, Director of Environmental Services
Reviewed by: Jaqui Guzmán, Deputy City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Draft On-Call Service Agreement