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Home My WebLink About03/15/2005, C5 - LABORATORY ANALYSIS SERVICES 2005-2006 council M° D�°3�s-oma j Acjenda Repout Ilam N.W. ^� CITY OF SAN LUIS OBISPO C' FROM: John Moss,Utilities Director Prepared By: Jim Autry, Water Reclamation Facility Supervisor SUBJECT: LABORATORY ANALYSIS SERVICES 2005-2006 CAO RECOMMENDATION 1. Approve contract with Fruit Growers Laboratory, Inc. (FGL) in the amount of$72,674 for Laboratory Analysis Services. 2. Reject two lowest bids as unable to meet contract specifications. DISCUSSION In November 2004, the CAO approved Invitation for Bids (IFB) #90504 for Water and Wastewater Laboratory Analyses Services and authorized staff to advertise for bids. Bid proposals were received and opened on January 6, 2005. The bid summary, including the lowest responsible bid, is shown in Table 1 below. This contract was to begin February 1, 2005 and continue through January 31, 2007 with the option for a one year contract extension by mutual agreement. The lowest two bids, American Scientific Labs, LLC and Del Mar Analytical, were not able to meet the description of work as outlined in the bid specification and opted to withdraw their bids. American Scientific could not meet the legally required sample tracking procedures, also known as chain of custody, and Del Mar could not guarantee Quality Assurance and Quality Control (QA/QC) for some of its analysis. In two previous IFB processes for laboratory analysis services, (2001-2002 and 2003-2004), contracts were awarded to the lowest responsible bid and in both instances the lowest bidding laboratories were unable to fully meet the description of work as outlined in the bid specification. In 2001-2002, the low bid was repeatedly unable to provide sufficient Quality Assurance and Quality Control which violated the bid specification and ultimately lead to legally indefensible data analyses. Additionally, analytical results were altered without re-analysis, once again providing the City with legally indefensible data analyses. In 2003-2004, the low bid laboratory was unable to fully comply with the packaging, shipping, and chain-of-custody reports as outlined in the description of work in the bid specifications. Improper preservatives were used for some sample containers, sample hold times were missed, and analytical reports were not consistent with chain-of- custodies. All of these items were not consistent with the description of work as outlined in the bid specifications and lead to legally indefensible data analyses. This resulted in significant staff time documenting deficiencies, tracking analyses, terminating contracts and preparing award to next lowest responsible bidder, in both cases FGL. 1 Laboratory Analysis Services 2005-2006 Page 2 The analyses received from contract laboratories becomes a record of WRF compliance with its NPDES discharge permit, copies of which are filed monthly with the Environmental Protection Agency, Regional Water Quality Control Board, and Department of Health Services. Receiving analyses data from contract laboratories which has not been properly sampled, preserved, tracked, and analyzed places the City in jeopardy of violating its discharge permit. FGL has been the contract laboratory for water and wastewater analyses for the City since 1995. They have been extremely reliable in providing the City with competent laboratory services.. Laboratories other than FGL have not shown the flexibility and professional quality necessary to provide the service that the Water Reclamation Facility and Water Treatment Plant demand. Staff is requesting that FGL be awarded the two year contract for 2005-2007 with the option for two, two year extensions, by mutual agreement, with prices not to increase by more than the percentage change in the US consumer price index (CPI). This would ensure the City exceptional laboratory analysis services through the next two Financial Plans. Staff will evaluate the performance of FGL prior to any contract extensions and will initiate an IFB process should FGL not be in full compliance with the description of work as outlined in the bid specification. Table I: 2005 Laboratory Analyses Services Bids Laboratory Water Plant WRF Total American Scientific Labs LLC $22,960 $38,610 $61,570 Del Mar Analytical $16,632 $49,736 $66,368 FGL Environmental 1 $19,622 1 $53,052 $729674 Creek Environmental Labs $17,306 $60,070 $77,376 CONCURRENCES The City Attorney's Office concurs with this recommendation. FISCAL IMPACT There is adequate budget for laboratory services for the Water Reclamation Facility through the end of the 2004-2005 fiscal year (see Table 2 below.). The Water Treatment Plant will need an additional $3,500 in budget to fund laboratory services through June 30, 2005. This amount will be transferred from water fund general carryover to the Water Treatment Plant lab services account. The laboratory analysis services costs listed in Table 1 above will be utilized in the development of the 2005-07 budget. The use of two, two year contract extensions and CPI price adjustments will be used in future budget development. ��z Laboratory Analysis Services 2005-2006 J Page 3 Table 2: Water and Wastewater Lab Analysis Budget FACILITY Available funding Additional Budget to January 1 to June 30, fund Activity to Total 2005 6/30/05 Water Treatment Plant 2,500 3,500 6,000 Water Reclamation Facility 14,000 0 14,000 TOTAL $16,500 $3,500 1 $20,000 ALTERNATIVES Council could decide to continue with our current two year lFB cycle for laboratory analysis services. Staff'does not recommend this alternative as past attempts and this current attempt at competitive bidding, has not yielded another contractor capable of meeting the City's requirements. Attachments 1. Contract 4 s' -3 Attachment 1 AGREEMENT THIS AGREEMENT is made and entered into in the City of San Luis Obispo on February 15, 2005 by and between the CITY OF SAN LUIS OBISPO,a municipal corporation,hereinafter referred to is City,and Fruit Growers Laboratories Inc.(FGL),hereinafter referred to as Contractor. WITNESSETH: WHEREAS, in November 2004, City invited bids for Laboratory Analyses Services per Specification No.90504. WHEREAS, pursuant to said invitation, Contractor submitted a proposal that was accepted by City for said Laboratory Analyses Services. NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained,the parties hereto agree as follows: 1. TERM. The term of this Agreement shall be from the date this Agreement is made and entered, as first written above; until January 31, 2007. At that tune the City may option to extend this contract for two years (February 1, 2007 thm January 31;2009) with pricing by mutual agreement not to increase by more than the percentage change in the US consumer price index. •City also options to an additional two year contract beginning February 1,2009. 2. INCORPORATION BY REFERENCE. City Specification No. 90504 and Contractor's proposal dated January 6,2005 are hereby incorporated in and made a part of this Agreement. 3. CITY'S OBLIGATIONS. For providing Laboratory Analyses Services as specified in this Agreement, City will pay and Contractor shall receive therefore compensation in a total sum not to exceed$72,674. 4. CONTRACTOR'S OBLIGATIONS. For and in consideration of the payments and agreements hereinbefore mentioned to be made and performed by City, Contractor agrees with City to provide Laboratory Analyses Services as outlined in Specification#90504. 5. AMENDMENTS. Any amendment, modification or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the CAO of the City. b: COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral agreement, understanding or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement, understanding or representation be binding upon the parties hereto. 7. NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered or certified mail addressed as follows: City Finance Department City of San Luis Obispo 990 Palm Street San Luis Obispo,CA 93401 Contractor Fruit Growers Laboratories Inc. 853 Corporation Street Santa Paula,CA 93060 8. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor do covenant that each individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such party. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written. ATTEST: CITY OF SAN LUIS OBISPO By: City Clerk Mayor APPROVED AS TO FORM: CONTRACTOR 17 By: City rney �S�5