REPORT TO COUNCIL
SUBJECT
Title
Award of Contract to Karbonous, Inc. in the Amount of $308,865.55 for the Repair of Dual Media Filters at the Water Pollution Control Plant (F24-228) and Find the Action Exempt Under the California Environmental Quality Act (CEQA) Pursuant to CEQA Guidelines Section 15301(b)
Report
REPORT IN BRIEF
Approval is requested to award a Maintenance and Repair Contract in the amount of $308,865.55 to Karbonous, Inc. of City of Industry, California for the repair of the Dual Media Filters at the Water Pollution Control Plant. Approval is also requested for a 10% contingency in the amount of $30,886, and authorization for the City Manager to execute the contract and a contract amendment to increase the maximum compensation up to the not-to-exceed contingency amount, subject to available budgeted funding.
EXISTING POLICY
Pursuant to Section 2.08.040 of the Sunnyvale Municipal Code, Council approval is required for the procurement of goods and/or services greater than $250,000 in any one transaction.
ENVIRONMENTAL REVIEW
This project is categorically exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guideline Section 15301(b) for the maintenance, repair, or minor alteration of an existing facility involving negligible or no expansion of use beyond that which presently exists.
BACKGROUND AND DISCUSSION
The Dual Media Filters (DMF) play a crucial role in wastewater treatment, serving as polishing filters before the disinfection process. These filters have been in continuous operation for over 30 years. Each DMF contains a filtration media composed of gravel, sand, and anthracite, which typically has a lifespan of 10 to 15 years.
The media in DMF 3 was last replaced in 2013 and has now reached the end of its service life. A media study conducted on April 22, 2024, confirmed its deteriorated condition. To restore optimal performance, this project will involve replacing the nozzles, support gravel, and filter media, as well as applying corrosion protection to extend the filter's longevity.
An Invitation for Bids (IFB) for the rehabilitation of the DMFs was issued on November 13, 2024, through the DemandStar public procurement network as well as directly provided to known contractors specialized in maintenance and repair of media filters. Twenty-one construction contractors downloaded the documents.
Sealed bids were publicly opened on January 22, 2025. The City received 3 bids, and the lowest responsive and responsible bid was submitted by Karbonous, Inc. in the amount of $308,865.55 (Attachment 1 Bid Summary).
FISCAL IMPACT
Budgeted funds are available in Project 830220 - Repairs to the Tertiary Process and PP20201 - Wastewater Equipment. A budget financial summary for each project is included as Attachments 3 and 4 to the report.
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 City Hall 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 Maintenance and Repair Contract to Karbonous, Inc. in the amount of $308,865.55 to provide repair services for one Water Pollution Control Plant dual media filter in substantially the same form as Attachment 2 to the report;
- Authorize the City Manager to execute the contract when all the necessary conditions have been met;
- Approve a 10% contingency in the amount not to exceed $30,886.00;
- Authorize the City Manager to execute an amendment to the contract to increase maximum compensation up to the not-to-exceed contingency amount if needed, subject to available budgeted funding; and
- Find the above actions categorically exempt under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301(b).
Levine Act
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 $500 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
An “X” 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
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
___ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: David Battaglia, Purchasing Officer
Reviewed by: Matthew Paulin, Director of Finance
Reviewed by: Ramana Chinnakotla, Director of Environmental Services
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Bid Summary
2. Draft Maintenance and Repair Contract
3. Project Budget Summary Sheet P20201 - Wastewater Equipment
4. Project Budget Summary Sheet 830220 - Repairs to the Tertiary Process