HomeMy WebLinkAboutApprove Sole Source Procurement Request with Hadronex Inc., (2) rev%-tWUTo 2000 Main Street,
ti� Huntington Beach,CA
92648
City of Huntington Beach RPneo VET)
cFcUUNTY
File #: 22-925 MEETING DATE: 2/7/2023
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Al Zelinka, City Manager
VIA: Sean Crumby, Director of Public Works
PREPARED BY: Chris Davis, Senior Administrative Analyst
Subject:
Approve Sole Source Procurement Request with Hadronex Inc., dba SmartCover Systems, for
Sanitary Sewer System Manhole SmartCovers
Statement of Issue:
Submitted for City Council approval is a Sole Source Procurement Request for Hadronex Inc., dba
SmartCover Systems, in the amount of $75,000 per year for the service of Sanitary Sewer System
Manhole SmartCovers (SmartCovers).
Financial Impact:
No additional funding is requested. Sufficient funds for servicing the SmartCovers are budgeted in
the FY 2022/2023 Sewer Service Fund account 51185201 .64620.
Recommended Action:
Approve Sole Source Procurement Request with Hadronex Inc., dba SmartCover Systems, for the
servicing of SmartCovers.
Alternative Action(s):
Do not approve the Sole Source Procurement Request and direct staff accordingly. While new
technology is becoming available in the market, the City would need to test it to determine if it is
compatible with the City's system. Denial of the Sole Source Procurement Request would mean that
the Wastewater Division would but unable to service existing Smartcovers in the City's Sanitary
Sewer System, thereby decreasing the ability of City staff to respond in a timely manner to Sanitary
Sewer Overflows (SSO). SSOs can impact public health, disrupt local businesses and, if located
close to the coast, result in beach closures. Additionally, the City could be subject to fines ranging
from $50,000 to $250,000 by the Regional Water Quality Control Board for failure to adhere to
Section 4 Operations and Maintenance in the Sanitary Sewer Management Plan (SSMP).
Analysis:
City of Huntington Beach Page 1 of 2 Printed on 2/1/2023
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File #: 22-925 MEETING DATE: 2/7/2023
SmartCovers are manhole covers that help the City better manage the sanitary sewer system.
These devices transmit real time data on the level of the sewage within the sewer system via an
antenna mounted under the manhole cover. The SmartCovers are located at strategic points in the
City's sanitary sewer system and can prevent or mitigate potential Sanitary Sewer Overflows (SSOs)
by providing advance warning before the system overflows.
In the past, City staff would respond to SSOs after they had already occurred, which resulted in
extensive and costly cleanups. SSOs pose a significant threat to public health and safety, cost tens
of thousands of dollars in staff time and city resources, and have extensive reporting requirements to
the State. SSOs cause major economic impacts to neighboring residences and businesses and can
ultimately result in beach closures. SmartCovers provide advance warning of potential issues and
facilitate proactive emergency response as a standard practice. Our currently deployed SmartCovers
have helped prevent 20 potential SSOs since 2016.
This sole source procurement is requested in accordance with Chapter 3.02 of the City of Huntington
Beach Municipal Code, as there is no alternative vendor. The City first purchased SmartCovers in
2016 and has installed 31 SmartCovers to date. SmartCover Systems is the only vendor available to
service the SmartCovers in the City's inventory. This sole source request is for servicing the existing
inventory as well as to purchase any necessary replacement parts.
Environmental Status:
Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will
not result in direct or indirect physical changes in the environment do not constitute a project.
Strategic Plan Goal:
Infrastructure & Parks
Attachment(s):
1. Sole Source Justification
2. Power Point Presentation
City of Huntington Beach Page 2 of 2 Printed on 2/1/2023
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F�°� - RECEIVED
�'�° .° 9\$ CITY OF HUNTINGTON BEACH
9' = '44 Sole-Source Justification OCT 26 2022
--0invfN d (For use on all goods and services acquisitions.)
Finance Department
This justification document consists of two(2)pages. All information must be provided and all questions must be answered. The"Required
Approvals"section must include a date for each signature,as appropriate for the transaction.
Requesting Department Information
Date: October 10, 2022
Requestor Name: Bryan Arnado Division Manager: Alvin Papa
(Type names. Do not sign.)
Department: Public Works Department Head: Sean Crumby
(Type names. Do not sign. Must be same as signature below.)
Department Contact information
Contact Name: Mark Birchfield Street Address: 19001 Huntington Street, 92648
Telephone: 714-375-5041
Fax: 714-847-1067 Shipping Address: 19001 Huntington Street, 92648
Cellular phone:
Required Contact Information
Contractor/Supplier Name: Hadronex, Inc., (dba Smartcover Systems)
Contractor/Supplier Address: 2067 Wineridge Place, Suite E, Escondido
Contractor/Supplier City/State/Zip: 92029
Original Contract Amount:* Amendment Amount:* (if applicable) New Contract Amount:*
$70,000 $ $75,000 annually
(*Includes original contract and previously (*Includes original contract and all amendments,
approved amendments) (*Current amendment only) including current amendment)
Provide a brief description of the acquisition, including all goods and/or services the contractor will provide:
Sole Source requested for the service of the City's existing Smartcovers, including purchase of replacement parts for the
existing units
Contract Type and Term
Contract Type: Contract Term: What account number will be used to purchase?
Select One: ❑ Goods Begin: 07/01/2022 Business Unit: 51185201
❑ Service
® Goods&Services End: N/A Object Code: 64620
Required Approvals
Department Head Finapce Manager-Budget C jief Financial Officer Assistant City Manager
0 A•4ved ❑ Deni•d A pfgv ❑ Denied Approved 0 Denied ['Approved ❑ Denied
Signat re Signature Signature Signature
10/240/202,Z jOL�i �li? /e!/ZilZ02 Z-
to Date I Date Date
(Transactions exceeding$50,000
must be approved by City Council)
1
e9 CITY OF HUNTINGTON BEACH
- _� Sole Source Justification
CO � (For use on allgoods and services acquisitions.)
s aur�Tv� cq )
Complete responses must be provided for all of the following items.
A. THE GOOD/SERVICE REQUESTED IS RESTRICTED TO ONE SUPPLIER FOR THE REASONS STATED BELOW:
1. Why is the acquisition restricted to this goods/services/supplier?
(Explain why the acquisition cannot be competitively bid.)
In 2016,the City's-Wastewater Section of Utilities purchase Smartcovers to monitor sewer flows in the
system. In 2016, Hadronex dba SmartCover systems was the only supplier of manhole covers that
provide remote data collection on the wastewater system via manhole cover or hatch antenna. The
smartcovers can be located at strategic points throughout the system and can mitigate potential Sanitary
Sewer Overflows (SSOs) by providing warnings before the system overflows. While another vendor now
provides a similar product,this sole source is requested for the service of already purchased goods.
2. Provide the background of events leading to this acquisition.
The City currently has (31) of smartcovers in the system. These smartcovers were purchased to provide
advanced warning of potential sanitary sewer overflows at locations in the city. These smartcovers have
provided warnings of 20 potential SSOs.
3. Describe the uniqueness of the acquisition (why was the good/service/supplier chosen?).
Smartcovers are a unique tool in the wastewater industry and the City purchased these goods before any
other vendors offered the product. Smartcovers provide warning of potential SSO to allow City staff to
proactively correct the problem before it can impact the public health and safety. The City purchased
these 31 smartcovers before another vendor offered the product. Any future purchases will go through
the bid process.
4. What are the consequences of not purchasing the goods/services or contracting with the proposed
supplier?
Hadronex is the only vendor who can service the City's smartcovers. Without smartcovers,staff would be
forced to respond to an SSO after it has already occurred. SSOs pose a significant threat to public health
and safety,can cost tens of thousands of dollars in staff time and city resources for clean up and state
reporting requirements,and have major economic impacts to neighboring businesses and potential
citywide economic impacts if an SSO causes a beach closure, and could generate a negative story in the
local newspaper. Additionally,the City's wastewater permit does include language recommending the
placement of smartcovers in the City's sanitary sewer system.
5. What market research was conducted to substantiate no competition, including evaluation of other items
considered?
(Provide a narrative of your efforts to identify other similar or appropriate goods/services,including a summary of how the department
concluded that such alternatives are either inappropriate or unavailable. The names and addresses of suppliers contacted and the reasons
for not considering them must be included OR an explanation of why the survey or effort to identify other goods/services was not
performed.)
Wastewater section staff keep abreast of industry standards and emerging technologies via networking
with peers, industry conferences and journals.
2
B. PRICE ANALYSIS
1. How was the price offered determined to be fair and reasonable?
(Explain what the basis was for comparison and include cost analyses as applicable.)
As noted,there was no comparable technology at the time of the purchase. Smartcover is the only
vendor who can provide service to the product already in the City's system. Replacing these smartcovers
with a different product would be more costly than servicing the existing smartcovers in the system.
2. Describe any cost savings realized or costs avoided by acquiring the goods/services from this supplier.
- Avoids costly clean up, mitigation &reputation damage by preventing SSO's, and CSO's
-Protects the public and the environment by avoiding SSO's and CSO's
Reduces employees' risk by avoiding sending personnel to sites when not necessary
-Protects collection system and cable vault asset life
Remit completed form to: City of Huntington Beach—Purchasing Division
2000 Main Street,Huntington Beach,CA 92648-2702
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