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HomeMy WebLinkAboutItem 1b - Reject Bids for Rehabilitation of Zone 3 Pressure Reducing Station ProjectReject Bids for Rehabilitation of Zone 3 Pressure Reducing Station Project May 1, 2018 Page 1 of 2 DATE: May 1, 2018 TO: Honorable Mayor and City Council FROM: Tom Tait, Public Works Services Director By: Tiffany Lee, P.E., Associate Civil Engineer SUBJECT: REJECT ALL BIDS RECEIVED FOR THE REHABILITATION OF ZONE 3 PRESSURE REDUCING STATION PROJECT AND DIRECT STAFF TO RE-BID THE PROJECT Recommendation: Approve SUMMARY The Fiscal Year 2017-18 Capital Improvement Project budget provides for the rehabilitation of the Zone 3 Pressure Reducing Station. To ensure the City is receiving the most competitive pricing for this type of service, a formal bid process was conducted and three bids were received. All bids received exceeded the estimated budget for these services. It is recommended that the City Council reject all bids received for the Rehabilitation of Zone 3 Pressure Reducing Station Project and direct staff to re-bid the project. DISCUSSION The Public Works Services Department (“PWSD”) is responsible for the daily operation and maintenance of the City’s pressure reducing stations. The City of Arcadia’s water system includes seven pressure reducing stations. The Zone 3 Pressure Reducing Station at Baldwin Avenue and Huntington Drive, installed in 1998, provides emergency supply from Zone 2 to Zone 3. Regular inspections and maintenance of the Zone 3 Pressure Reducing Station revealed safety concerns on the existing vault and operation of the existing valves. It is necessary to upgrade the existing pressure reducing station to improve operation and replace the existing vault cover to improve pedestrian safety. A Notice Inviting Bids was published in the City’s adjudicated newspaper, and bid packages were provided to contractors that perform this type of work. On March 27, 2018, the City Clerk received three bids with the following result: Reject Bids for Rehabilitation of Zone 3 Pressure Reducing Station Project May 1, 2018 Page 2 of 2 Bidder Location Bid E&R Construction, Inc. Baldwin Park, CA $170,100 TE Roberts, Inc. Orange, CA $189,625 Minako America Corporation Gardena, CA $267,550 All bids received exceeded the estimated budget for this project of $150,000. Staff contacted Minako America Corporation about why their bid was so high and it was confirmed that there was an error in their bid. The PWSD has reviewed the bids and project design and feels that savings can be achieved by slightly revising the scope of work and re-bidding the project. ENVIRONMENTAL ANALYSIS This project is categorically exempt per the California Environmental Quality Act (“CEQA”) as an existing facility, Section 15301 of the CEQA guidelines. FISCAL IMPACT Funds in the amount of $150,000 have been budgeted in the Fiscal Year 2017-18 Capital Improvement Plan for this project. RECOMMENDATION It is recommended that the City Council reject all bids received for the Rehabilitation of Zone 3 Pressure Reducing Station Project and direct staff to re-bid the project.