REPORT TO COUNCIL
SUBJECT
Title
Action on Award of a Purchase Order to Pump Repair Service Co. for the Purchase and Installation of a New Pump and Motor at Water Well Station 23 and Related Budget Amendment and a Class 1 Categorical Exemption Under CEQA
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The Water and Sewer Utilities Department (Department) is responsible for providing dependable supply of safe, potable water for the residents and businesses in Santa Clara. Today, the City’s water supply comes from 20 active groundwater wells and water purchased from the Santa Clara Valley Water District (Valley Water) and the San Francisco Public Utilities Commission (SFPUC).
Due to the current drought, wholesale water supplies from the Valley Water and SFPUC have been significantly reduced as water has become scarce throughout the region. In addition, the City has lost a number of wells from decommissioning of aging wells. To offset the shortfall, the Department is proposing to reactivate Water Well Station 23 (Well-23) which has been out of service since September 2018. To reactivate the well, staff determined that the existing pump and motor need to be replaced.
DISCUSSION
Pursuant to City Code Section 2.105.140(d), a formal Request for Bids (RFB) was conducted, with award recommendation to the lowest responsive and responsible bidder. In September 2022, the City issued a RFB which was posted on the City’s e-procurement system. Three responsive bids were received as follows:
|
Bidder |
Bid Amount |
|
Pump Repair Service Co. |
$289,960 |
|
Maggiora Bros Drilling |
$314,292 |
|
PumpMan NorCal |
$334,538 |
Staff recommends award of purchase order to Pump Repair Service Co. as the lowest responsive, responsible bidder. The bid amount of $289,960 includes all labor, equipment, tools, and materials to remove the existing pump and motor, conduct well videos, perform a downhole mechanical cleaning if required, and install the new pump and motor. The amount does not include applicable sales taxes.
Upon completion of work, Well-23 is expected to produce 1,600 gallons of potable water per minute.
ENVIRONMENTAL REVIEW
The action being considered is exempt from formal environmental review under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15301(b) (Class 1 - “Existing Facilities”) as the activity consists of the operation, repair, and maintenance of existing public structures, facilities, and mechanical equipment, including publicly owned utilities, involving negligible or no expansion of the existing use.
FISCAL IMPACT
A budget amendment appropriating funds from the Water Utility Fund’s unrestricted fund balance to the capital outlay budget is necessary to provide funds for this purchase. The amendment is detailed in the table below:
Budget Amendment
FY 2022/23
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Water Utility Fund |
|
|
|
|
Expenditure |
|
|
|
|
Capital Outlay |
$0 |
$289,960 |
$289,960 |
|
|
|
|
|
|
Ending Fund Balance |
|
|
|
|
Unrestricted Ending Fund Balance |
$4,140,933 |
($289,960) |
$3,850,973 |
COORDINATION
This report has been coordinated with the Finance Department and the 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 or via 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. Adopt a Class 1 Categorical Exemption Under CEQA Guidelines Section 15301(b);
2. Authorize the City Manager to award a Purchase Order to Pump Repair Service Co. for the purchase and installation of a new pump and motor for Water Well Station 23 in an amount of $289,960 plus applicable sales taxes;
3. Authorize the City Manager to execute change order(s) not to exceed $30,000 as contingency and subject to the appropriation of funds; and
4. Approve the FY 2022/23 budget amendment in the Water Utility Fund to appropriate $289,960 from the unrestricted ending fund balance to the capital outlay budget (five affirmative Council votes required for the use of unused balances).
Staff
Reviewed by: Gary Welling, Director, Water & Sewer Utilities
Approved by: Rajeev Batra, City Manager