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APPROVE THE ENVIRONMENTAL COMPLIANCE PRE-APPROVED ROTATING VENDOR LIST
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve findings pursuant to Stockton Municipal Code (SMC) section 3.68.070 in support of an exception to the competitive bid process.
2. Approve a list of rotating vendors to provide necessary environmental cleanup and abatement services to the Municipal Utilities Department.
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’s (MUD) Environmental Control Division enforces water quality requirements and regulations for incoming Regional Wastewater Control Facility flows, sewage spills and discharges. When illicit spills occur, State and Federal regulations require cleanup and/or mitigation in a timely manner to prevent pollution of local rivers or streams and to safeguard public health.
On January 5, 2019, a Request for Qualifications was advertised for Emergency Spill Cleanup and Abatement Services to develop a pool of vendors. The bid opening was on January 24, 2019, and there were no respondents. The MUD staff then reviewed past practices and created a list of eligible contractors with the required state licenses that are capable of performing various environmental cleanup and abatement services. Additions will be accepted to the list on an on-going basis for contractors meeting eligibility requirements that are interested in working with the City.
The MUD seeks an exception to the competitive bid process to establish a pre-approved list of environmental cleanup and abatement contractors. If approved, the MUD will use the rotating vendor list on an as-needed basis to respond to spills or discharges that could contaminate local rivers and streams.
DISCUSSION
Background
The MUD’s Environmental Control Division (EC) enforces water quality requirements and regulations for incoming Regional Wastewater Control Facility flows. These include flows from large industrial dischargers, food service establishments, waste haulers, and other smaller industrial users. EC is responsible for conducting inspections, sampling wastewater, writing and enforcing discharge permits, and responding to and coordinating illicit spill clean-up. When illicit spills occur, State and Federal regulations require immediate cleanup and/or mitigation response to prevent environmental pollution, protect the water quality of local rivers and streams, and prevent health and safety dangers. Historically, each spill cleanup incident has been below the Council established spending limit of $75,000 per project. Over the past four fiscal years, annual cleanup service costs for spill clean-up projects varied from approximately $5,000 to $40,000.
A 2012 audit found that although each cleanup project was below Council established spending limit, the cumulative effect for each vendor may exceed that limit. The audit, in part, recommended establishing a list of vendors to perform certain services, along with formally adopted criteria by which the vendors would be selected to perform such work.
Present Situation
On January 5, 2019, a Request for Qualifications was advertised for Emergency Spill Cleanup and Abatement Services to develop a pool of vendors. The bid opening was on January 24, 2019, and there were no respondents. The MUD staff then reviewed past practices and created a list of eligible contractors with the required state licenses capable of performing the environmental cleanup and abatement. Hazardous spill cleanup is a unique area of work that requires special training and licensing for hazardous material handling and disposal, and specialized equipment to handle toxic materials. These contractors demonstrated through their past performance, training, and licensing the necessary expertise and capability to perform the needed work and have a current business license on file with the City (Exhibit 1 to the Resolution).
Although the list includes contractors that meet the set criteria and have a proven history of performance with the City, the MUD developed policy and procedures for maintaining the list, which includes how contractors may be added or removed, such as by meeting insurance, licensing, and contracting requirements. The list is intended as a prequalification process for contractors. All contractors on the list are required to sign a letter agreement with the City, have a City business license, demonstrate their ability to perform the work, hold appropriate State licensing for their industry, and maintain on file the appropriate insurance certificates. Failure to meet any of these requirements or a documented history of failure to perform is grounds for removal from the list. Any contractor removed from the list for failure to perform may be considered for reinstatement after one year from the date of removal if agreed to by City staff.
An available list of qualified cleanup and mitigation service providers is critical to meet State and Federal regulations, which require immediate response for spill containment, cleanup, and remediation. The ability to mobilize immediately is essential for protecting public health and preventing illicit spills from polluting the local rivers and streams. A list of available, qualified contractors specially licensed to manage hazardous spills is an essential tool because the public safety could be jeopardized without a timely response and the City could also be subject to fines.
FINDINGS
Pursuant to SMC section 3.68.070, Council may approve findings that support an exception to the competitive bidding process. The findings to support an exception to the competitive bid process and approve a rotating vendor list for environmental cleanup and abatement services include:
a. A competitive Request for Qualifications for Emergency Spill Cleanup and Abatement Services to develop a pool of vendors received no bids.
b. This specialized contractor list will allow the City to quickly contract with vendors during specialized spill cleanup and abatement situations.
c. The cumulative total of these purchases by the vendor may exceed the Council established spending limit due to the specialized nature of the work. During these specialized cleanup and abatement situations, the City may not be able to apply the normal purchasing threshold, bidding, and contracting requirements, but will, nevertheless, have the need to move quickly and efficiently to protect public health and safety which is in the public interest.
d. A 2012 audit finding recommended management to consider establishing grouped and approved lists into a single authorization by City Council for contracting services that cumulatively may exceed the Council limit. This pre-approved vendor list will assist MUD in handling such specialized work.
e. The scope of services is very specific, which limits the number of qualified vendors available within reasonable proximity to the City. Contractors currently qualified have been included on the list. The policy allows other contractors to be added to the list and identifies the criteria for remaining on the list.
f. The MUD policy will ensure that the opportunity for work will be fairly distributed among the qualified vendors. This policy and purchasing procedures are also in the public interest and will assist in ensuring that the specialized work is performed by the most qualified vendors.
g. Additional vendors can be added to the list in the future by submitting a written request, by holding a current City business license, signing a letter agreement, having appropriate insurance certificates on file, and submitting evidence of necessary licensure for handling hazardous materials.
h. Establishing the preapproved vendor list is not a guarantee the City will provide such specialized work to the vendors on the list, or any particular amount of work.
FINANCIAL SUMMARY
There is no direct financial impact to the City from approving a rotating list of qualified vendors to provide environmental cleanup and remediation services. The work will be funded through the annual operations and maintenance budgets for the Water, Wastewater, and Stormwater utilities, as applicable. There is no impact to the General Fund, or any other unrestricted fund, from this action.