REPORT TO COUNCIL
SUBJECT
Title
Authorize the Issuance of a Purchase Order for Sewer Line On-Call Maintenance and Repair Services (F18-245)
Report
REPORT IN BRIEF
Approval is requested to authorize the issuance of a purchase order to Able Construction Group Inc. of San Jose in an amount not to exceed $200,000 for on-call maintenance and repair emergency and non-emergency sewer services. Approval is also requested to delegate authority to the City Manager to renew the purchase order for up to two additional years, subject to available funding and acceptable pricing and services.
EXISTING POLICY
Pursuant to Section 2.08.040 of the Sunnyvale Municipal Code, City Council approval is required for procurements of goods and services exceeding $100,000 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 15301 as it consists of maintenance and repair of an existing public facility involving negligible or no expansion of use beyond which presently exists.
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, five 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) and conveys wastewater to the Sunnyvale Water Pollution Control Plant by major interceptor pipelines located along Lawrence, Borregas & Mathilda Ave.
This service provides routine and emergency repairs to the sanitary sewer system and associated appurtenances and equipment to assure consistent operation and serviceability. Examples of work completed under this project include repairs to manholes, small spot or main line segment repairs, repairs or replacement of failed sewer laterals, lift station pump replacement, and CCTV camera repairs.
The ability to provide maintenance and repair of the sewer system is differentiated from other sewer main replacement projects by its intent to respond to unplanned or emergency needs that may come up during a year, whereas other replacement projects will be planned, designed, and involve sizeable contracts. This contract will be used on an as-needed basis to address unanticipated issues that require a rapid response for continued sewer system reliability. These repairs are of an urgent nature most of the time, and delay could result in adverse effects for public health and the environment should overflows occur. City Sewer staff will continue to be the first responders to any sewer emergency including making any repairs. This contract will be utilized in the event City staff is unable to do the work due lack of specialized equipment required for some repairs that are over 15 feet deep or lack of resources due to other ongoing repairs.
Bid specifications were prepared by Environmental Services Department and Purchasing staff and Invitation for Bids (IFB) No. F18-245 was directly emailed to nine known sewer repair vendors in the Bay Area and advertised to potential suppliers through the City’s DemandStar public procurement network. Sealed bids were opened on June 1, 2018. Two responsive bids were received, from Able Construction Group and Pipe & Planet Solutions Inc. As evidenced on the Bid Summary in Attachment 1, Able Construction Company has the greatest proportion of low bid items.
Staff recommends awarding one contract to Able Construction Group of San Jose.
FISCAL IMPACT
Funds will be used on as needed basis only. Total funding of $208,080 is included in FY 2018/19 for emergency repairs.
Funding Source
Wastewater Management Fund, Project 805253 - Sewer Emergency Repair and Replacement.
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) Authorize the City Manager to issue a purchase order to Able Construction Group, Inc. in an amount of $200,000, and 2) Delegate authority to the City Manager to renew the Purchase Order for two additional one-year periods, subject to available funding and acceptable pricing and services.
Staff
Prepared by: Gregory S. Card, Purchasing Officer
Reviewed by: Timothy J. Kirby, Director of Finance
Reviewed by: Ramana Chinnakotla, Director of Environmental Services
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Bid Summary
2. Draft Purchase Order