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HomeMy WebLinkAboutItem 12d - Reject all bids for the Rehabilitation of the Pressure Reducing Station ProjectReject Bids for Rehabilitation of Pressure Reducing Station Vault Lid Project October 2, 2018 Page 1 of 3 DATE: October 2, 2018 TO: Honorable Mayor and City Council FROM: Tom Tait, Public Works Services Director By: Eddie Chan, P.E., Principal Civil Engineer SUBJECT: REJECT ALL BIDS RECEIVED FOR THE REHABILITATION OF THE 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 pressure regulating and reducing station located on the south side of Huntington Drive east of Baldwin Avenue . 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. Due to a material error in one of the bids received, rejecting all bids and going back out to bid will result in the City receiving better prices. It is recommended that the City Council reject all bids received for the rehabilit ation of the pressure regulating and reducing station and direct staff to re-bid the project. BACKGROUND The Public Works Services Department (“PWSD”) is responsible for the daily operation and maintenance of the City’s water distribution system that includes seven pressure regulating and reducing stations. The pressure regulating and reducing station located on the south side of Huntington Drive east of Baldwin Avenue was installed in 1998 and provides water under certain system conditions from one pressure zone to another pressure zone. Specifically, the Huntington Drive pressure regulating and reducing station provides water from a higher pressure zone (Zone 2) to a lower pressure zone (Zone 3) during an emergency or when water pressure in Zone 3 drops to an undesired level. Regular inspections and maintenance of the Huntington Drive pressure regulating and reducing station revealed maintenance and safety concerns that include the existing vault and lid. It is necessary to upgrade the existing p ressure reducing station to Reject Bids for Rehabilitation of Pressure Reducing Station Vault Lid Project October 2, 2018 Page 2 of 3 improve operation and replace the existing vault lid. In an effort to keep cost at a minimum, the vault lid was purchased separately. DISCUSSION 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 July 31, 2018, the City Clerk received three bids with the following result: Bidder Location Bid Humphrey Constructors Diamond Bar, CA $75,900 E & R Construction, Inc. Baldwin Park, CA $126,275 Minako America Corporation Gardena, CA $213,690 The bid documents were reviewed for content, and the contractor’s background was also investigated. During the bid evaluation process, it was found that the lowest bid submitted by Humphrey Constructors had a clerical error. The price for one of the bid items should have been $49,000, but was written as $19,000. Instead of $75,900, they intended their bid to be $105,900. Humphrey admitted that it was a clerical error and requested their bid to be withdrawn. Based upon City Attorney review, the City cannot allow the bidder to correct the error nor can the City accept the bid as -is because the error is a non-waivable material bid error. The City’s options are to reject this bid as nonresponsive and award to the next lowest responsible bidder submitting a responsive bid or reject all bids and re-bid the project. This is the second bidding effort for this project. A third bid may result in fewer bids. Nevertheless, it is not advisable to simply accept the bid of E & R Construction, as that price would extend the project slightly beyond its allotted budget. More importantly, as indicated in Humprey’s intended bid, the job can be done for less. ENVIRONMENTAL ANALYSIS This project is considered a Class 1 exemption as defined in Section 15301(b) & (d) of the California Environmental Quality Act (“CEQA”) since the project consists of the maintenance of existing public streets and restoration or rehabilitation of deteriora ted or damaged facilities to meet current standards of public health and safety. This project is categorically exempt per the California Environmental Quality Act 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. A portion has been expended already to purchase the vault lid. Specifically, 30,374.73 was used for the purchase, leaving $119,625.27 for the construction phase of the project. Reject Bids for Rehabilitation of Pressure Reducing Station Vault Lid Project October 2, 2018 Page 3 of 3 RECOMMENDATION It is recommended that the City Council reject all bids received for the Rehabilitation of the Pressure Reducing Station Project and direct staff to re-bid the project.