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