REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Travis Hopkins, City Manager
VIA: Chau Vu, Director of Public Works
PREPARED BY: Chris Davis, Senior Management Analyst
Subject:
title
Approve Sole Source Procurement Request with Hadronex Inc., dba SmartCover Systems, for Sanitary Sewer System Manhole SmartCovers (SmartCovers)
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Statement of Issue:
The City Public Works Utility Division uses manhole covers that transmit information on sewage levels beneath the covers. The city has purchased and are currently using Hadronex Inc., dba SmartCover Systems to provide the advanced manholes and maintenance services for the manholes. The City Council is requested to approve a Sole Source Procurement with Hadronex Inc., in the amount of $100,000 per year for four years, for the purchase of SmartCover sanitary sewer system manhole covers and related maintenance services.
Financial Impact:
No additional funding is requested. Sufficient funds for servicing SmartCovers are budgeted in the FY 2025/26 Sewer Service Fund account 51185201.64620.
Recommended Action:
recommendation
Approve Sole Source Procurement Request with Hadronex, Inc., dba SmartCover Systems, for the servicing of SmartCovers.
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Alternative Action(s):
Do not approve the Sole Source Procurement Request and direct staff accordingly.
Analysis:
SmartCovers are advanced manhole covers that help the City more effectively manage its sanitary sewer system. These devices transmit real-time data on sewage levels via an antenna mounted beneath the manhole cover. Strategically placed throughout the City’s sewer system, SmartCovers provide early warnings that help prevent or mitigate potential Sanitary Sewer Overflows (SSOs) before they occur.
Previously, City staff could only respond to SSOs after they had already occurred, often resulting in extensive and costly cleanups. SSOs pose serious threats to public health and safety, can cost tens of thousands of dollars in staff time and City resources, and require detailed reporting to the State. They can also negatively impact nearby homes and businesses and may lead to beach closures. By enabling early detection, SmartCovers allow the City to implement proactive emergency responses. Since their deployment in 2016, SmartCovers have helped prevent 20 potential SSOs.
This sole source procurement request complies with Chapter 3.02 of the Huntington Beach Municipal Code, as there is no alternative vendor. The City first purchased SmartCovers in 2016 and currently has 37 units in service. This request is for the continued servicing of the existing inventory and the purchase of any necessary replacement parts.
Although new technologies may enter the market, any alternative system would require compatibility testing with the City’s infrastructure. Not approving this sole source request would prevent the vendor from servicing existing SmartCovers, thereby reducing staff’s ability to respond promptly to SSOs. Such delays could endanger public health, disrupt local businesses, and, if near the coastline, result in beach closures. Furthermore, the City could face fines between $50,000 and $250,000 from the Regional Water Quality Control Board for failing to comply with Section 4: Operations and Maintenance of the Sanitary Sewer Management Plan (SSMP).
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:
Non Applicable - Administrative Item
Attachment(s):
1. Sole Source Justification
2. Power Point Presentation