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Finance Committee
Meeting Date: 08/08/2023  
FROM: Bill Gallardo

Maintenance Agreement with Sancon Technologies Inc. for Placement of Cured-in-Place Pipe (CIPP) and Manhole Rehabilitation
Award as-needed contract to Sancon Technologies, Inc. (Sancon) for the placement of Cured-in-Place Pipe (CIPP) and Manhole Rehabilitation at identified locations within the City of Brea for one-year, with the ability to renew the contract for four additional one-year periods and authorize the City Manager to approve contract renewals for a not-to-exceed amount of $300,000.
On March 30, 2023, the City received three responsive bids to the RFP. Staff reviewed the proposals to determine the bidder's ability to provide sufficient staffing and equipment to perform the work at a competitive price and meet the City of Brea’s production goals and high-quality work standards.

After reviewing the qualifications and pricing of the proposals, staff ranked the bidders as follows:
  1. Sancon Technologies, Inc.
  2. Southwest Pipeline & Trenchless Corp.
  3. Insituform Technologies, LLC.
Staff found Sancon's proposal the most cost-effective and responsive to meet the needs of the City for placement of CIPP and Manhole Rehabilitation. Based upon this determination, staff recommends awarding the contract for the Placement of CIPP and Manhole Rehabilitation to Sancon for the annual relining of sewer mainlines at identified locations in the City.

Utilizing an outside contractor to perform these services is the most economical approach. The Public Works Department has considered performing this work but needs the in-house expertise, necessary equipment, and staffing to conduct this type of work without hiring additional personnel and purchasing additional equipment.
Staff posted an RFP for a CIPP and Manhole Rehabilitation contractor to the website. The City received three responsive bids.  Based on proposal reviews and price comparisons, staff recommends awarding the contract to Sancon.  This is a one-year contract with renewal for up to four additional one-year periods at the City's discretion. This recommendation is based on the ability of Sancon to meet all of the City's requirements, including pricing, responsiveness, high-level customer service, as well as the overall stability of the company. Annually, as part of the renewal consideration, staff will review the contract based on current prevailing wage rates and any Consumer Price Index (CPI) increases. 

The Public Works Department has budgeted an annual allocation of $300,000 in Fund 510 to perform this work. There is no cost to the General Fund, and no additional appropriation is needed.
Respectfully submitted: William Gallardo, City Manager
Prepared by: Jerry Mestas, Public Works Supervisor
Concurrence: Michael Ho, Director of Public Works/City Engineer
Sancon Bond
Sancon agreement

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