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ADOPT A RESOLUTION TO APPROVE FINDINGS AND AUTHORIZE CONTRACT AMENDMENT NO. 5 WITH ALPHA ANALYTICAL LABORATORIES, INC. FOR REGULATORY TESTING SERVICES
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RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve findings pursuant to Stockton Municipal Code Section 3.68.3070 which justify and support an exception to the competitive bidding process.
2. Authorize the City Manager to execute a six-month contract extension with Alpha Analytical Laboratories, Inc. of Elk Grove, California for $70,750 to provide contract laboratory services to support regulatory testing requirements.
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
The Municipal Utilities Department (MUD) operations are regulated under Title 22 of the California Code of Regulations (Cal. Code Regs.) for Water, the National Pollution Discharge Elimination System (NPDES) permits for Wastewater and Stormwater, and Title 40 Code of Federal Regulations (CFR) Part 403, for the Industrial Pretreatment Program. Each regulation prescribes the nature and type of analytical testing required to monitor operations.
On December 10, 2019, by Motion 2019-12-10-1109, the City Council authorized a five-year contract with Alpha Analytical Laboratories, Inc. (Alpha Analytical) of Elk Grove, California for $265,635. The current contract will expire on December 31, 2024. Amendments No. 1 through No. 4 added services for the Environmental Control Division, increased compensation, and revised the not-to-exceed contract amount to $623,883.
If approved, this action will authorize contract Amendment No. 5 (Exhibit 1 to the Resolution) with Alpha Analytical for $70,750 for contract laboratory services to support regulatory testing requirements. The extension increases the not-to-exceed contract amount to $694,633.
DISCUSSION
Background
Title 22 of the Cal. Code Regs. requires testing of both well and surface source water and distribution system samples for organic chemicals, inorganic chemicals, and physical and microbiological analyses on an ongoing basis. The required monitoring schedules vary based on the sample, and some results may initiate additional testing requirements or increase testing frequency. In addition, organic, inorganic, physical, microbiological, and toxicological analyses are required on treated wastewater, biosolids, and receiving water to meet the NPDES permit requirements for discharge into the San Joaquin River.
The Industrial Pretreatment Program Enforcement Response Plan prescribes actions against noncompliant industrial users. Such enforcement actions may range from monetary penalties to sewer service termination for more serious offenses. These enforcement actions are often based on results provided by the laboratory contracted by the City to analyze samples of industrial wastewater discharges. The accuracy of the results are critical to support enforcement penalties and are dependent upon the analysis being performed by an independent laboratory. The City’s industrial users are billed the actual charges for the laboratory analytical work.
On December 10, 2019, by Motion 2019-12-10-1109, the City Council authorized a five-year contract with Alpha Analytical Laboratories, Inc. (Alpha Analytical) for $265,635. The contract was executed on January 9, 2020, and will expire on December 31, 2024.
The following is a summary of amendments to the original contract agreement:
• Amendment No. 1 was approved under City Manager authority in May 2021, which modified the scope of work to include contract laboratory services for the MUD Environmental Control Division for Fiscal Years 2020-2021 and 2021-2022, and increased compensation by $64,048.
• Amendment No. 2 was approved on April 19, 2022 by Motion 2022-04-19-1209. The City Council authorized a cost increase, an increase in compensation by $163,300, and revised the not-to-exceed contract amount to $492,983 for the five years.
• Amendment No. 3 was approved under City Manager authority in August, 2023. Compensation was increased by $66,400, and the not-to-exceed contract amount was revised to $559,383.
• Amendment No. 4 was approved under City Manager authority in November 2024, which increased compensation by $64,500 and revised the not-to-exceed contract amount to $623,883.
Present Situation
The contract with Alpha Analytical will expire on December 31, 2024. Negotiations with the Central Valley Regional Water Quality Control Board (Regional Board) for a new NPDES permit for the Regional Wastewater Control Facility are ongoing, and it is expected the City will receive the new NPDES permit within the next few months. To include additional sampling requirements, staff recommend extending the contract with Alpha Analytical for six (6) months. In addition, by extending the contract until June 30, 2025, the solicitation of future contracts for laboratory services will better align with the fiscal year budget development efforts in the department.
Findings
Pursuant to Stockton Municipal Code Section 3.68.070, the City Council may approve findings which support and justify an exception to the competitive bidding process. The following findings support and justify an exception:
1. The vendor is an Environmental Laboratory Accreditation Program (ELAP) State-certified laboratory and has provided consistently accurate results and services.
2. Extending the contract for six (6) months will allow staff to include any new sampling requirements from the new NPDES Permit in the bid process.
3. Aligning the contract with the fiscal year allows for improved budgeting and planning in the department.
FINANCIAL SUMMARY
The new contract amendment of $70,750 is for laboratory services throughout the extended term of the contract. With this amendment, the not-to-exceed contract amount will increase to $694,633. Funds are available from the Laboratory and Environmental Control Divisions Laboratory Services accounts for Fiscal Year 2024-25.
This action has no impact to the General Fund, or any other unrestricted fund.