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AUTHORIZE A FIVE-YEAR PROFESSIONAL SERVICES CONTRACT WITH ALPHA ANALYTICAL LABORATORIES, INC FOR LAB SERVICES
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Accept the Specifications and Addenda for the Request for Sealed Bids for Municipal Utilities Department Laboratory Services, PUR 25-022.
2. Authorize a five-year contract with Alpha Analytical Laboratories, Inc of Elk Grove, California, to provide laboratory services in a total amount not-to-exceed $1,486,133.
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 motion.
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Summary
The Municipal Utilities Department (MUD) is comprised of three enterprise funds including Water, Wastewater, and Stormwater Utilities.
The Water Utility provides drinking water service to the northern and southern regions of the Stockton Metropolitan Area, with the California Water Service Company and San Joaquin County serving the central region.
The Wastewater Utility includes a sanitary sewer collection system of approximately 900 miles of gravity sewer main, 554 miles of lower lateral pipe, 27 pump stations, and 30 miles of pressurized force main that route sewage to the Regional Wastewater Control Facility (RWCF) for treatment. The system collects sewage from properties within the City, special districts outside the City, and certain areas within San Joaquin County.
The Stormwater Utility consists of 74 pump stations, over 600 miles of pipeline, and 22,500 drain inlets that route stormwater from city streets into local basins and waterways.
Title 23 of the California Code of Regulations (Cal. Code Regs.) regulates Water Utility operations and requires testing of both well and surface source water, and frequent distribution system samples for organic chemicals, inorganic chemicals, physical, and microbiological analyses.
The Wastewater Utility and Stormwater Utility are regulated by the National Pollution Discharge Elimination System (NPDES) Permits. Each regulation prescribes the nature and type of analytical testing required to monitor MUD operations.
If approved by the City Council, this action will authorize a five-year contract (Attachment A) for contract laboratory services to perform required water tests with the most responsive and competitive bidder, Alpha Analytical Laboratories, Inc (Alpha Analytical) of Elk Grove, California, in the amount of $1,486,133.
DISCUSSION
Background
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 testing, 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.
Present Situation
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 the following electronic bids that are regular in all respects, meet City requirements and include proper certifications:
Test Type |
Company name |
|
Alpha Analytical |
BSK Associates |
Routine Wastewater Monitoring |
$20,980 |
$40,867 |
Hazardous Waste Characteristics |
$1,560 |
$1,452 |
Priority Pollutants |
$2,514 |
$2,398 |
Biosolids |
$1,693 |
$1,978 |
Title 22 Drinking Water |
$74,692 |
$78,638 |
Effluent Characterization |
$24,816 |
$28,830 |
Industrial Waste & Wastewater Hauler Testing |
$153,665 |
$201,445 |
Total |
$279,920 |
$355,608 |
The amounts shown on the bid schedule above reflect the annual fee for the estimated testing required. The quantity of each test was estimated for comparative purposes, as these services are to supplement the testing capabilities of the MUD lab.
There was a calculation error on the bid summaries for both companies (Attachment C). The amounts have been corrected and shown in the above table. Prices reflect the cost of testing performed by the contract labs and not in-house. The annual costs throughout the contract term with the lowest bidder, Alpha Analytical, are shown in the table below. These costs assume a maximum cost increase of three percent (3%) per year and are rounded to the nearest dollar.
Bidder |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
Total |
Alpha Analytical |
$279,920 |
$288,318 |
$296,967 |
$305,876 |
$315,052 |
$1,486,133 |
Staff recommend authorizing a five-year contract with Alpha Analytical of Elk Grove, California, to provide laboratory services in a total amount not-to-exceed $1,486,133.
FINANCIAL SUMMARY
The total cost of $1,486,133 is for contract laboratory services throughout the five-year term of the contract. Funds for the first year of the contract will be available following City Council approval of the FY 2025-26 Annual Budget from the Laboratory Services accounts for both the Laboratory and Environmental Control. Funds for future services will be budgeted in the same accounts and presented to the City Council for approval during the annual budget process.
This action has no impact on the General Fund or any other unrestricted funds.
Attachment A - Alpha Analytical Laboratories, Inc Contract
Attachment B - Proposed Tests and Estimated Annual Quantities
Attachment C - Bid Summary