REPORT TO COUNCIL
SUBJECT
Title
Award a Contract to Sanact Incorporated for Sewer Siphon Cleaning and Inspection: Phase One Project (F19-047) and Approve Budget Modification No. 10
Report
REPORT IN BRIEF
Approval is requested to award a contract in the amount of $223,025 to Sanact Incorporated of Livermore to provide sewer siphon cleaning and inspection. Approval is also requested for a 10% contingency in the amount of $22,303 and approve Budget Modification No. 10 to fund the project.
EXISTING POLICY
Pursuant to Section 2.08.040 of the Sunnyvale Municipal Code, City Council approval is required for the procurement of goods and/or services exceeding $100,000 in any one transaction.
Pursuant to Sunnyvale Charter Section 1305, at any meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by affirmative votes of at least four members so as to authorize the transfer of unused balances appropriated for one purpose to another, or to appropriate available revenue not included in the budget.
ENVIRONMENTAL REVIEW
The project is categorically exempt under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 for maintenance or repair of existing public facilities involving negligible or no expansion of use beyond which presently exists.
BACKGROUND AND DISCUSSION
Sewer siphons are sewer pipes that allow wastewater to cross under obstructions such as creeks, large underground pipelines, and major thoroughfares such as Central Expressway. Typical sewer main depths range from 5 to 8 feet below the street. Siphon pipes drop down below the obstruction, then rise back up on the other side utilizing gravity to move wastewater through the system. These low points tend to collect grease and debris, and require routine cleaning to prevent blockages and possible overflows.
Staff performs a relatively light cleaning of most of the siphons every 90 days. This includes hydro flushing and some debris removal. However, staff does not have the specialized equipment needed to perform a more thorough cleaning to remove heavy debris that accumulates over time. The scope of work for this project includes a thorough cleaning and removal of heavy debris and a video inspection at 3 siphon locations around the City.
The initial project (F18-295) to clean and inspect all Citywide sewer siphons and pipes was advertised in June of 2018 with one bid received in the amount of $1,129,480. Staff recommended the rejection of the bid (RTC No. 18-0684) due to insufficient funding. After reviewing the project, staff decided to divide the project into smaller portions and bid the work in phases.
An Invitation for Bids was advertised for competitive bidding on the City’s DemandStar public procurement network on September 25, 2018, with seven companies requesting bid documents. Sealed bids were opened on October 24, 2018, with three (3) responsive bids received. The bid summary is contained in Attachment 1. It is important to note that the low bid for projects with “optional bid items” is solely determined by the base bid amount. The lowest responsive and responsible bid was submitted by Sanact Inc., with a base bid amount of $125,025 and two optional bid items, which staff is recommending to be included in the award, totaling $98,000.
FISCAL IMPACT
The construction contract to be awarded in the amount of $223,025 plus 10% contingency. The Wastewater Management Fund includes a Project 829100 - Sanitary Sewer Siphon Cleaning and Assessment. The available budget of $101,000 is insufficient to fund this work. Therefore, staff is recommending approval of Budget Modification No. 10 to fund this contract. Staff will review the project budget going forward as part of the FY 2019/20 Recommended Budget and include adjustments as necessary.
Budget Modification No. 10
FY 2018/19
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Current |
Increase/ (Decrease) |
Revised |
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Development Enterprise Funds |
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Expenditures |
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Project 829100 - Sanitary Sewer Siphon Cleaning and Assessment |
$101,000 |
$144,328 |
$245,328 |
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Reserves |
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Capital and Infrastructure Reserve |
$4,123,661 |
($144,328) |
$3,979,333 |
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) Award a contract in substantially the same form as Attachment 2 to the report in the amount of $223,025 to Sanact Incorporated and authorize the City Manager to execute the contract when all necessary conditions have been met, 2) Approve a 10% contingency in the amount of $22,303, and 3) Approve Budget Modification No. 10 in the amount of $144,328.
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 Maintenance and Repair Agreement