AGENDA ITEM
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: CARLO TOMAINO
CITY MANAGER
BY: THOMAS BEKELE
PUBLIC WORKS DIRECTOR
SUBJECT:
title
GENERAL SERVICES AGREEMENT WITH GRACE ENVIRONMENTAL INCORPORATED FOR VALVE EXERCISING SERVICES
summary
Summary:
The City Council will consider entering into a three-year General Services Agreement with Grace Environmental Incorporated (GEI) for a not-to-exceed amount of $220,035. The scope of work includes exercising 1,597 valves located within the City’s water pipeline network, conducting a thorough condition assessment, and executing the associated flushing of pipeline segments. The proposed contract would provide the City with the ability to regularly exercise valve infrastructure, which is an industry best practice to maintain high water quality standards and reduce emergency maintenance related to leaks.
Strategic Plan Goal(s):
Goal No. 4 Infrastructure: Maintain and improve the City’s physical infrastructure, water system, and recreational spaces.
recommendation
Recommendation:
Authorize the City Manager to enter into a General Services Agreement with GEI for a three-year term contract for a not-to-exceed amount of $220,035, in a form approved by the City Attorney. This agreement encompasses the comprehensive exercising of all 1,597 valves within the City’s water pipeline network, conducting a thorough condition assessment, and performing the associated flushing of pipeline segments.
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Fiscal Impact:
Regular valve exercising and flushing is an industry-standard recommendation to maintain the valve’s useful life, safety, and operation. Valve exercising and flushing are tasks typically performed by Water Operations staff. However, due to a staffing shortage, the Water Department budget has accrued savings of approximately $160,000 in Fiscal Year (FY) 2023-24 Salaries & Wages account (500-40-5110) as of December 2023. A portion of these accrued savings will offset this critical scope of work during the first year of the proposed contract. Staff will evaluate the proposed ongoing contract costs for the latter two fiscal years relative to the Water Fund’s expected cash flow, debt service obligations, and recommend an appropriation through the budget adoption process as necessary.
Background:
The Public Works Water Division manages a network of potable water pipelines, stretching over 50 miles, with diameters ranging from 4 to 20 inches. This system includes 1,597 valves, essential components that require consistent inspection and exercising. Regular valve operation is a vital maintenance activity, playing a key role in preserving water quality and facilitating the overall upkeep and replacement of the pipeline infrastructure.
Defective valves in water distribution systems create significant challenges related to maintaining water quality and preventing leaks. The primary issue stems from the reduced flow of water through these valves, leading to stagnation in certain areas of the system. Stagnant water is a favorable environment for the growth of bacteria and other microorganisms, which can compromise the safety and quality of the water supply. This stagnation is particularly concerning in parts of the system with low usage, where water can remain stationary for extended periods.
Another consideration to regularly exercise valves is the impact on water pressure within the system. Partially closed valves can cause irregular pressure patterns, leading to both high and low-pressure zones. High pressure can strain the system, potentially causing leaks and bursts in the pipes. Low pressure can create conditions that allow contaminants to infiltrate the system through cracks or joints that are not completely sealed. Proper exercising reduces the likelihood that valves will seize, rust, or otherwise deteriorate over time thereby improving the lifespan of each valve. Valves that operate at full capacity are extremely critical to the system as these allow for the safe and efficient shutdown of water mains during water services replacements, water main replacements, emergency leak repairs, and other critical maintenance activities.
Analysis:
In past practices, City staff attempted to exercise up to 200 valves a year. The primary reasons for the lack of consistent valve exercising stems from limitations associated with staffing, the need for extensive traffic control, and overlapping priorities. Another factor was the need for advanced coordination with businesses and residents, and other flushing requirements. These factors, along with variable staffing levels, made it difficult for staff to carry out valve exercising activities effectively and efficiently. By contracting this work, the City can create a more effective valve exercising program and accurately identify valves that are not fully operational and document these efforts using a Geographic Information System (GIS). This approach not only assists in tracking non-functional valves but also prioritizes replacement based on urgency and budget availability. This method streamlines the process, ensuring more effective maintenance and management of the City's water infrastructure and water quality. Staff’s proposed approach would help maintain high water quality and maintenance standards.
Last year, the City experienced a series of leaks that required emergency repair. As noted above, the proposed valve exercising program is a recommended best practice that would reduce the potential occurrence of emergency leaks due to water pressure issues. Over the past year, staff has continued reviewing its practices and identified opportunities to incorporate best practices that are financially sustainable, reduce emergency repair costs, and maintain high water quality standards. Recognizing the urgency to maintain the City’s water infrastructure, staff recommends applying the exemption allowed in the Signal Hill Municipal Code (SHMC) (below) to waive the formal bidding process for services over $50,000.
Section 3.2.120 (I) Exemption to procurement method.
Best Interest of City. Except where otherwise prohibited by law, when the city council or city manager authorizes the award and execution of contracts for goods, services, and public projects subject to the dollar limits consistent with this chapter, without following the required procurement methods, provided that the city council or city manager finds that such award is in the best interest of the city, or of the public health, safety, and welfare.
Informal Bidding RFP Circulation Process:
On November 30, 2023, the City issued an Informal Request for Proposals (RFP) due to the urgency and specialized nature of this work (Attachment A). Valve exercising and flushing necessitates specialty equipment, including a valve truck with specialized software, staff trained in valve exercising operation and torque calibration, as well as expertise in traffic control. Staff conducted the RFP process in accordance with SHMC section 3.20.080 (B), as allowed for an informal quotation process.
The City notified five qualified vendors known for performing similar work, of this bid opportunity and requested their submission of proposals by the deadline of December 15, 2023, at 5:00 P.M. Two qualified vendors submitted a proposal that met the project requirements; the tabulation on the following page represents the response from each vendor.
Staff reviewed GEI’s proposal and determined GEI can fully execute the project’s scope of work and may potentially be able to assist concurrently with the State mandated lead and copper sampling at a future time, contingent on budget and priorities (Attachment B). GEI provided the lowest cost proposal with the best qualifications to perform the work. GEI is also a Department of Industrial Relations (DIR) registered contractor and a local Disabled-Veteran-Owned Small Business.
Upon the execution of the proposed contract, staff would work closely with GEI to start the valve exercising and flushing process as a priority service, with work expected to begin February, 2024 (Attachment C). As noted earlier, staff recommends a three-year contract to secure the best pricing but will evaluate the proposed ongoing costs relative to the Water Fund’s ability to support these services based on expected cash flow projections.
Reviewed for Fiscal Impact:
_________________________
Sharon del Rosario
Attachments:
A. Request for Proposal
B. Proposal from GEI
C. Agreement with GEI