REPORT TO COUNCIL
SUBJECT
Title
Award of Contract to Able Construction Group, Inc. in the Amount of $600,000 for Sewer Line On-Call Maintenance and Repair Services (F24-257)
Report
REPORT IN BRIEF
Approval is requested to award a contract in an amount not to exceed $600,000 with Able Construction Group, Inc. of San Jose for Sewer Line On-Call Repair and Maintenance Services for the Environmental Services Department for an initial three-year period. Approval is also requested to authorize the City Manager to modify and renew the contract for two (2) additional one-year periods subject to available budget and if pricing and service remain acceptable to the City.
EXISTING POLICY
Pursuant to Section 2.08.040 of the Sunnyvale Municipal Code (SMC) Council approval is required for the procurement of goods and/or services greater than $250,000 in any one transaction.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.
BACKGROUND AND DISCUSSION
The City’s sanitary sewer system consists of approximately 300 miles of sewer mains (ranging from 4-48 inches in diameter), over 9,800 feet of force mains, 5 pump stations, 5,287 manholes and over 29,500 laterals. The system serves the residents and businesses of Sunnyvale as well as 1,200 customers in the City of Cupertino (Rancho Rinconada). It conveys wastewater to the Sunnyvale Water Pollution Control Plant by major interceptor pipelines located along Lawrence Expressway, and Borregas and Mathilda Avenues.
The City is responsible for making repairs to the sanitary sewer system and associated appurtenances and equipment to ensure consistent operation and serviceability. Examples include repairs to manholes, small spot or mainline segment repairs, repairs or replacement of failed sewer laterals, lift station pump replacement, and Closed Circuit Television (CCTV) camera repairs.
These repairs are usually of an urgent nature. Delays could result in adverse effects on public health and the environment should overflows occur. The on-call contractor will assist staff in conducting such repairs as needed.
The Invitation for Bids was posted on the City’s DemandStar public procurement network on August 8, 2024. It was directly provided to known contractors specialized in sewer line maintenance and repairs in the Bay Area. Sealed bids were publicly opened on August 28, 2024, with one responsive bid received (See Attachment 1 - Bid Summary).
The City recommends awarding a contract to Able Construction Group with a proposed value of $600,000. This recommendation is based on a comprehensive evaluation of bid pricing, the company's flexibility, and its ability to provide timely access to materials, ensuring that operational needs can be met efficiently as they arise. These services will be used on an as needed basis to cover most unanticipated emergencies and equipment failures to maintain services and avoid sewer overflows.
FISCAL IMPACT
Available budget is appropriated in Fund 6081 - Wastewater Management Fund under Project 805253 - Sewer Emergency Repair and Replacement. A project summary is included as Attachment 3.
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 a three-year contract to Able Construction Group, Inc. for sewer line on-call maintenance and repair services in a not-to-exceed contract amount of $600,000;
- Authorize the City Manager to execute the contract when all necessary conditions have been met;
- Authorize the City Manager to amend the not-to-exceed amount, subject to available budget; and
- Authorize the City Manager to renew the contract for two (2) additional one-year periods if pricing and service remain acceptable to the City.
Levine
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $250 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
A check in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
___ Contract or franchise
EXEMPT FROM THE LEVINE ACT
_x Competitively bid contract
___ Labor or personal employment contract
___ General policy and legislative actions
Staff
Prepared by: David Battaglia, Purchasing Officer
Reviewed by: Dennis Jaw, Interim Director of Finance
Reviewed by: Ramana Chinnakotla, Director of Environmental Services
Reviewed by: Jaqui Guzmán, Deputy City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Bid Summary
2. Draft On-Call Services Agreement
3. Budget Summary Project 805253 - Sewer Emergency Repair and Replacement