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SR 01-12-2021 3D City Council Report City Council Meeting: January 12, 2021 Agenda Item: 3.D 1 of 4 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 3.D Packet Pg. 131 2 of 4 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 3.D Packet Pg. 132 3 of 4 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 3.D Packet Pg. 133 4 of 4 Prepared By: Kori Jones, Administrative Analyst Approved Forwarded to Council Attachments: A. Oaks Initiative (Southwest Pipeline & Trenchless Corp) 3.D Packet Pg. 134 3.D.a Packet Pg. 135 Attachment: Oaks Initiative (Southwest Pipeline & Trenchless Corp) (4351 : Award Lateral Connection Bid)