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ADOPT A RESOLUTION RESCINDING THE MAY 13, 2025, CITY COUNCIL ACTION AUTHORIZING A FIVE-YEAR CONTRACT WITH ALPHA ANALYTICAL LABORATORIES AND APPROVING A FOUR-YEAR CONTRACT WITH BSK ASSOCIATES FOR AS-NEEDED REGULATORY TESTING SERVICES (CITYWIDE)
recommended action
RECOMMENDATION
It is recommended that the City Council approve a resolution to:
1. Rescind the action taken by the City Council at the May 13, 2025, meeting authorizing a five-year contract with Alpha Analytical Laboratories; and
2. Authorize a four-year contract with BSK Associates of Stockton, California, for As-Needed Regulatory Testing Services in an amount not-to-exceed $1,487,750 (Exhibit 1 to the Resolution).
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
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Summary
On May 13, 2025, the City Council approved a motion authorizing a five-year contract with Alpha Analytical Laboratories, Inc. (Alpha) to provide as-needed regulatory testing services in a total not-to-exceed amount of $1,486,133.
Over the past year, staff observed several performance issues, and Alpha’s service quality declined. As a result, staff recommends rescinding the City’s approval of Alpha’s contract and approving a separate four-year, not-to-exceed $1,487,750 contract with BSK Associates of Stockton, California, for As-Needed Laboratory Services.
DISCUSSION
Background
The Municipal Utilities Department (MUD) is comprised of three enterprise funds, including Water, Wastewater, and Stormwater Utilities.
Water, Wastewater, and Stormwater Utilities are regulated for the protection of public health and the environment. Title 23 of the Cal. Code Regs. regulates water treatment and distribution operations. The National Pollution Discharge Elimination System (NPDES) permits establish regulations for wastewater treatment and stormwater pollution prevention. Each regulation prescribes the nature and type of analytical testing required to monitor MUD operations.
The Cal. Code Regs. requires testing of well and surface source water and ongoing distribution system samples for organic chemicals, inorganic chemicals, physical, and microbiological analyses. The required monitoring schedules vary based on the sample, and some results may initiate additional testing requirements or increased frequency of testing.
The NPDES permits require treated wastewater, biosolids, and stormwater to undergo organic, inorganic, physical, microbiological, and toxicological analyses prior to being discharged into the San Joaquin River. A list of each proposed test and the estimated annual quantity required are identified in Attachment B.
Federal and State regulations require accurate, dependable, and timely reporting of laboratory results. Errors or significant delays in analytical reporting may result in violations and potential fines.
While the MUD lab and staff are certified to perform many of the required tests, additional support is necessary to supplement department capabilities when the turnaround time or volume of necessary tests cannot be met in-house. A contract for laboratory services also ensures the completion of all required tests in the event MUD equipment malfunctions.
Alpha has provided regulatory testing services to MUD since January 1, 2020.
A Request for Sealed Bids was publicly advertised on January 16, 2025, in The Record and on the City Bid Flash webpage. The bid identified seven specific areas of testing for which qualified laboratories could submit bids. All respondents and their subcontractors are required to have and maintain certification with the State of California Environmental Laboratory Accreditation Program (ELAP). Additionally, a courtesy notice was sent to six labs familiar to the City. On Thursday, February 20, 2025, two labs submitted electronic bids that were regular in all respects, met City requirements and included proper certifications; Alpha Analytical and BSK Associates.
On May 13, 2025, the City Council approved Motion 2025-05-13-1214 authorizing a five-year contract with Alpha to provide as-needed regulatory testing services in a total not-to-exceed amount of $1,486,133. This not-to-exceed cost includes testing services that staff normally perform in-house, allowing for coverage in the event of equipment failure or other extenuating circumstances.
Staff met with the vendor in June 2025 to discuss ongoing issues and ways to improve performance under the new contract. However, problems continued, and Alpha was not meeting the contract expectations regarding required testing and scheduling.
As a result, staff now recommends rescinding the current contract and awarding the work to the next lowest bidder.
Present Situation
Staff contacted BSK Associates to confirm whether they would honor their originally submitted pricing. After review, BSK agreed to honor the prices shown below.
|
Task # |
Description |
Task Price |
|
1 |
Routine WW Monitoring |
$40,867.00 |
|
2 |
Hazardous Waste Characteristics |
$1,452.00 |
|
3 |
Priority Pollutants |
$2,398.00 |
|
4 |
Biosolids |
$1,978.00 |
|
5 |
Title 22 Drinking Water |
$78,638.00 |
|
6 |
Effluent Characterization |
$28,830.00 |
|
7 |
Industrial Waste & Wastewater Hauler Testing |
$201,445.00 |
|
|
TOTAL PRICE |
$355,608.00 |
The contract amount includes a three percent increase beginning in year two to account for potential future price adjustments.
FINANCIAL SUMMARY
The cost of $1,487,750 covers laboratory services for the remaining four-year term. The first year of the contract is estimated at $355,608. The FY 2026-27 Annual Budget includes sufficient funding in the Laboratory Services accounts for both the Laboratory and Environmental Control divisions (6519-000-630022-600-000-00-65-000-000, and 6519-000-630022-610-000-00-65-000-000, 6521-000-630022-610-000-00-65-000-000 and 6521-000-630022-620-000-00-65-000-000, respectively).
Funding for subsequent years will be budgeted in the same accounts and remain subject to City Council approval as part of the annual budget development process.
This action has no impact on the General Fund or any other unrestricted funds.