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SR 11-28-2017 3B City Council Report City Council Meeting: November 28, 2017 Agenda Item: 3.B 1 of 3 To: Mayor and City Council From: Susan Cline, Director, Public Works, Water Resources Subject: Reject All Bids for Water / Wastewater Instrumentation Maintenance Services Recommended Action Staff recommends that the City Council: 1. Reject all bids for Bid #4288 for Water/Wastewater instrumentation maintenance services. 2. Direct staff to reissue a bid in order to obtain the best bidder for Water/Wastewater instrumentation maintenance services. Executive Summary Contractor services are required to maintain and ensure the accuracy of equipment used to monitor and control systems at City water treatment and wastewater facilities, wells, and pumping and distribution networks. Two bids were received in response to a City Notice Inviting Bids for such services issued on September 11, 2017. One bidder did not possess a contractor’s license, and the other bid far exceeded the available budget for these services. Staff recommends rejecting both bids and re-advertising the bid with improved vendor outreach efforts. Section 2.24.100(a) of the Municipal Code requires Council approval to reject all bids and re-advertise. Background The City owns and operates facilities and equipment in Santa Monica and West Los Angeles for the production, treatment and distribution of potable and non-potable water; and to control the flow of wastewater as a part of systems serving approximately 93,000 residents and 18,000+ water/sewer accounts. Instrumentation and equipment at these sites include chemical controllers, flow meters, pressure transmitters, pump controls, recorders, tank level indicators and valve controllers. Contractor services are required to keep this equipment in good working order to ensure the accuracy of readings and maximize safety. If not properly calibrated, errors in measuring and controlling liquid and 2 of 3 chemical flows may occur, inadvertently leading to water quality issues, overflows/spills and poor data reported to state and local entities for regulatory and informational purposes. Sites requiring services include: Arcadia Water Treatment Plant - 1228 S. Bundy Drive, Los Angeles, CA Charnock Treatment Facility - 11375 Westminster Avenue, Los Angeles, CA Moss Avenue Pump Station - 1623 Appian Way, Santa Monica, CA Santa Monica Urban Runoff Recycling Facility - 1625 Appian Way, Santa Monica, CA 3 potable water reservoirs in Santa Monica and Los Angeles 10 water production wells in Santa Monica and Los Angeles Discussion The City utilizes contractor services for the maintenance and repair of equipment used to monitor and control systems at City water treatment and wastewater facilities, wells, and pumping and distribution networks. On September 11, 2017, the City published a Notice Inviting Bids #4288 for Water / Wastewater instrumentation maintenance and repair services in accordance with City specifications. The bid was posted on the City’s online bidding site, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. A total of 27 vendors downloaded the bid, and two bids were received on October 4, 2017. Gold Coast Environmental did not possess a contractor’s license as required by the City, and Telstar Instruments’ cost of $647,000 per year for instrumentation calibration services, excluding repairs, exceeded the budget available for these services. Municipal Code Section 2.24.100(a) requires formal rejection of proposals to re- advertise. Therefore, staff recommends that Council reject the two proposals received and direct staff to refine and re-advertise the bid. 3 of 3 In an effort to engage additional bidders, staff would perform additional outreach efforts to instrumentation vendors, review/refine contractor licensing and certification requirements, and require a mandatory pre-bid conference and job walk at the Arcadia Water Treatment Plant to ensure firms have complete information on City service requirements and the available budget for the requested services. Financial Impacts and Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action. Prepared By: Kevin Nagata, Senior Administrative Analyst Approved Forwarded to Council