REPORT TO COUNCIL
SUBJECT
Title
Action to Approve Payments to Shape, Inc., PAC Machine Company, and TrueBlue Automation Services for Lick Mill Storm Pump Station Emergency Pump Repairs and Rental Services, Related Budget Amendments, and Accept this Post-Emergency Report
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The Department of Public Works (DPW) and Water and Sewer Utility Department (WSUD) operate and maintain 21 storm drain pump stations (SDPS) located mainly in the northern portion of the City. The SDPS are critical infrastructure for providing flood protection by moving water more efficiently than gravity alone and enabling water to be moved from lower to higher levels. Each pump station has one or more pumps installed in a wet well that are engineered to discharge stormwater collected through a series of catch basin inlets and underground storm drain pipelines to a water body.
The Lick Mill SDPS located at 449 Montague Expressway collects stormwater from 620 acres of land area and drains into the Guadalupe River. It has the capacity to move 105,500 gallons per minute (gpm) of storm water into the Guadalupe River through a series of 48-inch reinforced concrete pipes with three submersible pumps.
DISCUSSION
Overview of the Emergency Event
During a storm event on January 22, 2024 the WSUD received an emergency alert for a high-water level alarm in the wet well at Lick Mill SDPS. After some investigation it was discovered that the contractor replacing the emergency generator at the site disconnected electrical components to the pump controls which resulted in the pumps not starting and minor flooding on Lick Mill Boulevard. During this event only two of the three pumps were in service, Pump 1 was previously not working and had been removed for repairs. The electrical contractor responded and reconnected Pumps 2 and 3, but when the pumps were turned on they ran in reverse direction because the electrical contractor did not reconnect the pumps properly. This caused the power cables and access cable to become twisted in the pump shaft resulting in damage to Pumps 2 and 3 requiring them to be removed and repaired. Pump 2 was removed first and is in the process of being rebuilt. Pump 3 will be removed and repaired once Pump 2 is installed and operational.
Because this event happened during the rainy season, it was imperative that staff act quickly to get the problem resolved prior to the next set of storms. The City contacted TrueBlue Automation Services to diagnose and repair the pump controls and Shape, Inc. to remove, diagnose, and repair pumps 2 and 3. These pumps are very large and require a crane to remove them so they can be trucked to Shape’s facilities for the necessary assessment and repair. Taking into consideration the storm events forecasted at the time of the incident, the length of time required to remove and repair the pumps, and flooding potential, it was necessary to install temporary pumps to discharge storm water from the pump station into the Guadalupe River. Staff reached out to several companies and PAC Machine Company was able to quickly respond and provide the temporary pumps and piping systems necessary to mitigate the risk of flooding. Two 12-inch above ground pumps and one 10-inch submersible pump were placed on site to keep the pump station in operation. The City also obtained an emergency permit from Valley Water to install temporary piping up and over the levee so the storm water could be discharged into the Guadalupe River.
City staff has logged over 470 labor hours at Lick Mill SDPS since January 22, 2024 working to diagnose, repair, and keep the site operational. The temporary pumps have logged over 350 run hours since being installed and have maintained the specified wet well water levels, successfully mitigating any potential flooding.
Emergency Purchase
Given the risk of flooding in the Lick Mill SDPS catchment area, staff determined that the situation met the definition of an “emergency purchase” under Section 2.105.260(a) of the Santa Clara City Code (City Code). The City Code states “In the case of an emergency involving the threatening of lives, property or welfare of the people of the City or the property of the City, the City Manager and/or his/her designee may purchase supplies, materials or equipment without formal bidding, as formal bids would be an “idle act” in such an emergency and may contract for general services which the City Manager and/or his/her designee deems necessary for the purpose of meeting such emergency.” DPW, WSUD, the City Manager’s Office (CMO) and the Finance Department (FIN) coordinated to obtain the necessary equipment and resources on an emergency basis. Through this process the City authorized Shape, Inc., PAC Machine Company, and TrueBlue Automation Services to dispatch crews and equipment to install a temporary pumping solution and repair the damaged pumps and electric controls on a time and material basis. TrueBlue Automation Services was already under contract with WSUD for pump control repair services, but the City did not have agreements in place with the other two vendors so emergency purchase orders were put in place. The CMO provided updates to the Council on the status of the emergency and on February 17, 2024, an email was also distributed to the City Council describing the efforts that were being undertaken to mitigate the situation. The following is a summary of estimated expenditures to be paid to each contractor for services provided:
• $155,000 -TrueBlue Automation Services for pump controls diagnosis and repairs
• $325,000 -Shape, Inc. for emergency removal, diagnostics and pump repairs
• $205,000 to PAC Machine Company for temporary pumps and discharge piping
Pursuant to City Code Section 2.105.260(c), the City Manager and/or his/her designee shall provide a post-emergency report to the City Council on the use of any reserve amounts expended for the emergency purchase. DPW does not have available funding in its operating budget to cover this unplanned emergency expense, so a Budget Amendment is requested to allocate the necessary funds to pay the contractors listed above.
For the Council’s information, a separate agenda item concerns a declaration of “urgent necessity” for the emergency repair of pavement on four City streets. Street replacement and repair work qualifies as a “public works” contract subject to Charter Section 1310, which requires the Council to make an “urgent necessity” declaration after the work has been performed. However, the emergency repair and replacement of water pumps at the Lick Mill storm drain pump station do not qualify as “public works” under the Charter, and so instead of utilizing the “urgent necessity” provisions of the Charter, this item provides a “post-emergency report” to the Council pursuant to the procurement ordinance.
Cost Recovery Efforts
DPW is coordinating with the City Attorney’s Office (CAO) to explore avenues for cost recovery including reimbursement by the electrical contractor. However, any cost recovery that can be obtained will not occur prior to the commencement of FY 2024/25 so a FY 2023/24 Budget Amendment is necessary to prevent overspending during the current fiscal year.
ENVIRONMENTAL REVIEW
The actions being considered are subject to a statutory exemption from the California Environmental Quality Act (“CEQA”) pursuant to California Public Resources Code section 21080(b) because they involve emergency repairs to public service facilities necessary to maintain service.
FISCAL IMPACT
The costs paid to Shape, Inc. and TrueBlue Automation Services for emergency repairs and PAC Machine Company for temporary pumps has not been finalized as work is still ongoing. The estimated cost for these services is projected to be $685,000. The budget amendment below allocates funding from the General Fund Budget Stabilization Reserve to the Storm Pump Motor and Control Replacement Project in the Storm Drain Capital Fund for the emergency services as DPW did not allocate budget for this emergency work in the project budget. Any funds recovered from the contractor will be used to replenish the Budget Stabilization Reserve (BSR). Any unused funds will be returned to the BSR after invoices are finalized.
Budget Amendment
FY 2023/24
|
|
Current |
Increase/ (Decrease) |
Revised |
|
General Fund (001) |
|
|
|
|
Transfers To |
|
|
|
|
Storm Drain Capital Fund |
$0 |
$685,000 |
$685,000 |
|
|
|
|
|
|
Ending Fund Balance |
|
|
|
|
Budget Stabilization Reserve |
$54,299,297 |
($685,000) |
$53,614,297 |
|
|
|
|
|
|
Storm Drain Capital Fund (535) |
|
|
|
|
Transfers From |
|
|
|
|
General Fund - Budget Stabilization Reserve |
$0 |
$685,000 |
$685,000 |
|
|
|
|
|
|
Expenditures |
|
|
|
|
Storm Pump Motor and Control Replacement Project |
$763,961 |
$685,000 |
$1,448,961 |
COORDINATION
This report has been coordinated with the Finance Department, Water Sewer Utility Department and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Approve estimated payment of $155,000 to TrueBlue Automation Services to diagnose and repair the pump controls at the Lick Mill SDPS;
2. Approve estimated payment of $325,000 to Shape, Inc. for emergency removal, diagnostics and repairs to pumps 2 and 3 at the Lick Mill SDPS;
3. Approve estimated payment of $205,000 to PAC Machine Company to supply temporary pumping capacity at the Lick Mill SDPS;
4. Approve the following FY 2023/24 budget amendments:
A. In the General Fund, establish a transfer to the Storm Drain Capital Fund and decrease the Budget Stabilization Reserve in the amount of $685,000 (five affirmative Council votes required for the use of unused balances) and
B. In the Storm Drain Capital Fund, recognize a transfer from the General Fund - Budget Stabilization Reserve and increase the Storm Pump Motor and Control Replacement Project in the amount of $685,000 (five affirmative Council votes required to appropriate additional revenue).
5. Note and file this Post-Emergency Report pursuant to Santa Clara City Code Section 2.105.260(c).
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Jovan D. Grogan, City Manager