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HomeMy WebLinkAboutItem 1h - Reject bids for Fiber Optics and re-bidGALIFORntq��r' August 5, 1903 STAFF REPORT Public Works Services Department DATE: July 1, 2014 TO: Honorable Mayor and City Council FROM: Tom Tait, Public Works Services Director By: Jan Balanay, Senior Engineer Assistant Carmen Masud, Management Analyst SUBJECT: REJECT ALL BIDS RECEIVED FOR THE FIBER OPTICS PROJECT AND DIRECT STAFF TO RE -BID Recommendation: Approve SUMMARY The Fiscal Year 2013 -14 Capital Improvement Plan ( "CIP ") includes the extension of conduit and fiber optic cable from Live Oak Avenue at Sixth Avenue to the Public Works Services Department ( "PWSD ") Service Center. PWSD conducted a formal bid for this project and received four bids. All bids received were significantly higher than the project's approved budget. It was determined that re- designing and re- bidding the project will allow the City to receive bids within the approved budget amount. It is recommended that the City Council reject all bids received for the Fiber Optics Project and direct staff to re -bid. BACKGROUND In 2004, the City of Arcadia completed an Intelligent Transportation System ( "ITS ") Master Plan to develop a short and long -range traffic management program. The ITS Master Plan included installation of a fiber optic network which later provided fiber optic connections that improved the City's data and telecommunication system. At that time, sufficient funds were unavailable to extend the fiber optic conduit to the PWSD Service Center. Currently, PWSD is linked to the City's computer network through copper wires known as T -1 lines. These old wires are slower than needed for modern communications needs and result in system down -time, delays in transmitting information, and occasional dropped transmissions. For instance, running regular financial reports on the City's servers located at City Hall can take hours at the PWSD Service Center, while a fiber optic connection would allow the report to be completed in minutes. If the connection is lost while the report is being run, it must often be restarted, costing significantly more time. Reject Bids for the Fiber Optics Project July 1, 2014 Page 2 of 3 In 2012, the City Council authorized the City Manager to enter into a contract to complete Phase 2 of the ITS Plan which extended the fiber optic network to Live Oak Avenue at Sixth Avenue. This enabled PWSD to extend the network to the PWSD Service Center. DISCUSSION The Fiscal Year 2013 -14 CIP includes the extension of conduit and fiber optic cable from Live Oak Avenue at Sixth Avenue to the PWSD Service Center, and will allow PWSD to install and upgrade to the latest technology to improve communication efficiency and reliability. PWSD conducted a formal bid for this project. A Notice Inviting Bids was published in the City's adjudicated newspaper and bid packages were distributed to contractors that perform this type of work. The City Clerk publicly opened four sealed bids on June 3, 2014, with the following results: RANK FIRM LOCATION TOTAL BID 1 Ferreira Construction Co, Inc. Chino $426,596 2 Select Electric, Inc. Poway $510,835 3 PTM General Engineering Riverside $586,685 Services, Inc. 4 VCI Construction, Inc. Upland $759,023 The Fiscal Year 2013 -14 CIP budget for this project is $275,800. This estimate was based on the best unit cost information available during the budgeting period and for the scope of work that was expected at that time. Bids received for this project were considerably higher than anticipated as existing and future field conditions changed, encroachments onto and through adjoining public agency jurisdictions, and a less competitive bidding environment affected the bidder's costs. In order to stay within the project's approved budget, the scope of work from the original bid specifications will need to be revised to include smaller conduit size, possible re- routing of the conduit, or the possibility of installing cable in existing third -party conduits or poles. It is anticipated that revising the bid specifications and re- bidding this project will enable the City to receive bids within the project's approved budget. Reject Bids for the Fiber Optics Project July 1, 2014 Page 3 of 3 FISCAL IMPACT Funds in the amount of $275,800 have been budgeted in the Fiscal Year 2013 -14 Capital Improvement Program for the Fiber Optics Project. Approving the project as bid would require at least an additional $150,000 allocation. It is believed that the project scope can be modified to bring the project within budget. RECOMMENDATION It is recommended that the City Council reject all bids received for the fiber optics project and direct staff to re -bid. Approved: Dominic La77ar t6 City Manager