REQUEST FOR CITY COUNCIL AND
CORONA UTILITY AUTHORITY ACTION
DATE: 01/17/2024
TO: Honorable Mayor and City Council Members
Honorable President and Board Members
FROM: Utilities Department
SUBJECT:
Title
MAINTENANCE/GENERAL SERVICES AGREEMENT WITH GOLDEN BELL PRODUCTS, INC. FOR MANHOLE PEST CONTROL SERVICES
End
EXECUTIVE SUMMARY:
This staff report requests City Council approval of a Maintenance/General Services Agreement with Golden Bell Products, Inc. in the amount of $125,000. Golden Bell Products, Inc. will provide the City of Corona Utilities Department with manhole pest control services utilizing Insecta brand product on an as needed basis.
RECOMMENDED ACTION:
Recommended action
That the City Council:
a. Authorize the City Manager, or his designee, to execute the Maintenance/General Services Agreement with Golden Bell Products, Inc. for the purchase of pest control services utilizing Insecta brand product in the amount of $125,000 per fiscal year and authorize the extension of the agreement with three (3) optional one-year renewal periods.
b. Make a determination under Corona Municipal Code Section 3.08.140(B) based upon reasons provided in the “Basis for Determination of Competitive Bidding” section of this report.
c. Authorize the City Manager, or his designee, to negotiate and execute non-substantive extensions, purchase orders, change orders and amendments up to 10% of total contract cost or $12,500 as authorized by Corona Municipal Code Section 3.08.060(J).
That the Corona Utility Authority review, ratify, and to the extent necessary, direct that the City Council take the above actions.
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BACKGROUND & HISTORY:
The Utilities Department (UD) operates and maintains more than 400 miles of sewer collection lines and more than 9,800 manhole structures. The pest-control maintenance of the sewer collection system and treatment is a vital service to ensure keeping sewer manholes free of cockroaches and other pests. An infestation in a manhole makes completing routine and preventative maintenance on the structures difficult. Abatement and mitigation are a priority of sewer collection system maintenance due to frequent customer service requests on the matter.
The UD has used Insecta for pest control against cockroaches within the City’s sewer collections systems for several years and have been thoroughly satisfied with its performance as well as the application process, safety, and skill demonstrated by Golden Bell technicians. As part of an ongoing yearly maintenance program, the UD sets a goal to spray 5,000 manholes annually. Manholes are generally grouped by location and sprayed once every two years.
Golden Bell Products, Inc. has provided services and products that are used in sewer manholes for the control of cockroaches since October of 1998, when the first test area was treated in the State of California. Over the past 20 years, Golden Bell Products, Inc. has provided this service with minimal price increases.
The rate schedule on past fiscal years for the City of Corona Utilities Departments is:
ANALYSIS:
Insecta is the only product of its type for use in sewer manholes and Environmental Protection Agency (EPA) regulations approved. Traditional control methods are not feasible due to reapplication, duration, and effectiveness. It was discovered that other insecticide options were less effective and required frequent application, ranging from every 30-90 days.
BASIS FOR DETERMINATION OF COMPETITVE BIDDING
Staff believes that Competitive Bidding has been accomplished for this item pursuant to Corona Municipal Code (CMC) Section 3.08.140(B), which states as follows:
“No competitive market. When the purchasing agent and the authorized contracting party, with the approval of the City Manager, determines, in accordance with applicable law, that a competitive market does not exist and that no competitive advantage will be gained by the public bidding process.”
Golden Bell Products, Inc. has the sole source right for the application and distribution within the State of California, according to JABco from the Insecta Manufacturing Company. Additionally, Golden Bell Products, Inc. is licensed by the California Agricultural Department of Pesticide Regulation holding a Qualified Applicator License (QAL) license with the required categories A, C, N and a pest-control business license.
Insecta is a formulated product, which is produced in an EPA-approved establishment. The product comes ready to use and since it is polymerized; there is no field mixing required. This product is used with an application method where it locks the chemical into a non-evaporating latex coating lasting several times longer than conventional spray applications. Insecta has proven to be effective standing up to the eighteen-month guarantee provided by Golden Bell Products, Inc. and the product manufacturer.
The following are the rates for treating more than 1000 manholes per year:
|
FISCAL YEAR (FY) |
PRICE PER MANHOLE |
|
FY 2024 |
$24.75 |
|
FY 2025 |
$25.75 |
|
FY 2026 |
$26.75 |
Staff recommends approval of the Maintenance/General Services Agreement with Golden Bell Products, Inc. for manhole pest control services, utilizing Insecta brand products, in the amount of $125,000.
FINANCIAL IMPACT:
Funding for the recommended actions is available in the Fiscal Year 2024 Utilities Department operating budget. Future funding requests will be recommended through the annual budget process.
ENVIRONMENTAL ANALYSIS:
This action is exempt pursuant to Section 15378 (b)(2) of the Guidelines for the California Environmental Quality Act (CEQA), which states that CEQA does not apply to continuing administrative or maintenance activities. This action is a continuing administrative and maintenance activity, including the purchasing of pest-abatement supplies and services, of the City’s existing wastewater lines and manhole cover facilities. Moreover, Insecta, the pest-abatement product proposed to be use, was registered on December 21, 2015 with United States Environmental Protection Agency (EPA) under the Federal Insecticide, Fungicide and Rodenticide Act and was accepted on March 15, 2016 by California Department of Pesticides Regulation. Therefore, no environmental analysis is required.
PREPARED BY: AFTAB HUSSAIN, MAINTENANCE MANAGER
REVIEWED BY: TOM MOODY, DIRECTOR OF UTILITIES
Attachments:
1. Exhibit 1 - Manufacturer sole source letter
2. Exhibit 2 - Maintenance/General Services Agreement