That the Utility Authority:
A.  Approve to waive formal bid requirements per La Habra Municipal Code, Section 4.20.070 (B); and

B.  Approve and authorize the Executive Director to execute an agreement with Golden Bell Products, Inc., in the amount of $55,687.50 to spray the interior shaft of 2,250 sewer manholes with pesticide for roach control.

The City's sewer system is a network of approximately 125 miles of sanitary sewer mains with 2,250 manholes uniformly spaced throughout the entirety of the network.  Manholes serve as points of access for routine cleaning, inspection, and the ventilation of sewer gasses. Due to the nature of sewer systems, they provide an effective environment in which cockroaches can thrive. Cockroaches can be carriers of more than 20 species of pathogenic bacteria, including E-coli, salmonella, and dysentery.  During the late summer/early fall seasons, both adult cockroaches and new nymphs are present in sewer systems.  The nymphs will often migrate out of the sewer system during the late summer/fall through ventilation holes in manholes covers, looking for new food sources.

A proven method for the control and elimination of cockroaches in sewer systems is the application of a pesticide known as INSECTA.  The pesticide is a spray-on insecticidal latex coating that is applied to the top seven feet of the interior wall of a sewer manhole shaft.  When cockroaches come into contact with INSECTA, they will die within a 48-hour period.  INSECTA is an Environmental Protection Agency approved chemical manufactured by JABco and is the only spray-on insecticidal latex coating product registered for use in sewer systems. 

JABco has granted sole distribution, and application rights within California to Golden Bell Products, Inc. (Golden Bell).  Golden Bell has used INSECTA throughout California since 1998 and has provided effective roach control services for the City of La Habra since 2014.  Golden Bell provides insect control services to more than 85 agencies in California, including all sewer agencies in Orange County, and warrants each application for 18 months against roach infestation.
Staff recommends waiving formal bid requirements per LHMC, Section 4.20.070 (B), since the goods and services can be obtained through only one vendor, and award a contract to Golden Bell to apply INSECTA to all sewer manholes in La Habra.

Award of this contract will have no impact on the General Fund.  The Sewer Enterprise Fund's Fiscal Year 2021-2022 Annual Operating Budget has approved funding for this expenditure in the amount of $55,687.50.