SR 01-12-2021 3D
City Council Report
City Council Meeting: January 12, 2021
Agenda Item: 3.D
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To: Mayor and City Council
From: Susan Cline, Acting Assistant City Manager, Public Works, Water Resources
Subject: Award Bid #1210205 and enter into Agreement with Southwest Pipeline and
Trenchless Corporation for Sewer Lateral Repair
Recommended Action
Staff recommends that the City Council:
1. Award Bid #12101205 to Southwest Pipeline and Trenchless Corporation for
sealing of sewer laterals for the Public Works Department;
2. Authorize the City Manager to negotiate and execute an agreement with
Southwest Pipeline and Trenchless Corporation, in an amount not to exceed
$551,000 over five years. Future year funding contingent on Council budget
approval.
Summary
The Water Resources Division operates and maintains approximately 152 miles of
wastewater collection pipelines, including more than 18,000 sewer lateral connections
to residents and businesses. As part of routine operation and maintenance of the
wastewater collection system, the Division inspects and repairs sewer laterals to
maintain reliable service. One of the repair strategies performed is to seal sewer laterals
to prevent and/or stop leaks. Approximately 20-25 sealings of sewer laterals are
completed each year. Staff recommends that the City Council authorize the City
Manager to negotiate and execute an agreement with Southwest Pipeline and
Trenchless Corporation, for sewer lateral sealing services, in an amount not to exceed
$551,000 over five years. This agreement will use funds from the Wastewater Fund,
dedicated to costs related to maintaining reliable wastewater collection service for the
city.
Discussion
During routine inspections of the City’s wastewater collection system, damaged laterals
with eroded seals are flagged by staff for repair. The damage is caused by ground
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movement (e.g. settlement) over time, tree roots, or blockages. Contractor assistance is
required periodically to repair cracked or eroded seals of private lateral connections
when specialized equipment (e.g. trenchless technologies) and/or repair material (e.g.
sealant, chemical grout, or liner) is required. The Water Resources Division uses
contractor services to repair approximately 20 to 25 laterals each year as required.
Adequate sealing of sewer laterals is essential to the efficiency and reliability of the
City’s sewer system by preventing leaks and large breaks to sewer lines.
In October 2020, the City released a request for bid to establish a contractual services
agreement for lateral sealing. Outreach was conducted by staff, prior to the close of the
bid, that included multiple email reminders and phone calls to potential bidders. One
response was received. Staff requests that Council authorize the bid award to
Southwest Pipeline and Trenchless Corporation (SPTC), in an amount of $100,000 for
FY 2020-21, and a total amount not to exceed $551,000 over five years. A purchase
order in the amount of $80,000 was previously issued in November 2020 for SPTC to
complete emergency repairs ahead of this contract award. This amount will be deducted
from the contract encumbrance following execution of a Contractual Services
Agreement.
Vendor Selection
Best and Only Bidder Southwest Pipeline and Trenchless Corporation
Submittals Received Selection Criteria
Bidder $11,816 Municipal Code SMMC 2.24.180
Evaluation Criteria
(Include all that apply)
Price; the quality of the material or services offered; the ability, capacity
and skill of the bidder to perform or provide the materials or services; the
capacity of the bidder to perform the contract or provide the service
promptly, within the time specified, and without delay or interference; the
sufficiency of the bidder’s financial resources; the ability of the bidder to
provide such future maintenance or service as may be needed; any other
factor that will further the intent set forth in Section 608 of the City Charter.
The City shall have absolute discretion in determining the applicability and
weight of the criteria listed above.
Bid Data
Date Posted Posted On
Advertised In
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
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10/19/2020 City's Online
Bidding Site Santa Monica Daily Press 12 11/12/2020
Additional Vendor Outreach & Justification to Award
Bid #12101205 was posted October 19, 2020 and originally scheduled to close November 5,
2020. Due to the lack of responses near the original deadline, the City’s procurement reached
out to vendors who downloaded the bid and extended the deadline to November 12, 2020.
Procurement conducted additional outreach to vendors who downloaded the bid to see why they
did not submit a bid even with the extended deadline. Robotic Solutions, one of the City’s
incumbent vendors for lateral connection replacement, indicated that they had missed the
deadline even after being informed that the bid due date was being extended for an additional
week.
Sewer lateral connection repair was last bid out in June 2017 whereby the City awarded three-
year agreements to Southwest Pipeline and Trenchless Corp as well as to Robotic Sewer
Solutions. These agreements expired in August 2020 with no available renewal options having
been provided by either vendor. Southwest Pipeline and Trenchless Corp was the sole bidder to
submit a response to the FY 2020-21 bid request. Their pricing submitted is within industry
standards, approximately nine percent higher than what was submitted under the two prior
agreements for lateral sealing; CT 10515 and 10516 (Oct 2017 – Aug 2020). During their
previous contract term with the City, Southwest Pipeline & Trenchless Corp provided above
satisfactory workmanship.
Financial Impact and Budget Actions
Staff seeks authority to approve available funding from the Wastewater Fund to award a
contract with Southwest Pipeline and Trenchless Corporation for sealing of lateral sewer
lines. Future year funding is contingent on Council budget approval.
Agreement Request
FY 2020-21
Request Amount Department Account # Total Contract
Amount
$100,000 51500001.550010 $551,000
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Prepared By: Kori Jones, Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. Oaks Initiative (Southwest Pipeline & Trenchless Corp)
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3.D.a
Packet Pg. 135 Attachment: Oaks Initiative (Southwest Pipeline & Trenchless Corp) (4351 : Award Lateral Connection Bid)