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HomeMy WebLinkAboutItem 11g - Reject and Re-bid Duarte Road Sewer Capacity Improvement ProjectDuarte Road Sewer Capacity Improvement Project June 4, 2019 Page 1 of 3 DATE: June 4, 2019 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 DUARTE ROAD SEWER CAPACITY IMPROVEMENT PROJECT AND DIRECT STAFF TO RE-BID THE PROJECT Recommendation: Approve SUMMARY The City of Arcadia’s 2006 Sewer Master Plan study identified and prioritized sections of sanitary sewer pipe that are flowing at or above design capacity. Based on the study, the section of sewer pipe on Duarte Road between Baldwin Avenue and the connection point to the Los Angeles County Sanitation District (“LACSD”) sewer trunk pipe at Holly Avenue needs to be replaced in order to accommodate peak sewer flows. The Fiscal Year 2018-19 Capital Improvement Program budget allocates funding to replace the existing 12-inch sewer pipe with a 16-inch sewer pipe. To ensure that the City is receiving the most competitive prices and quality service for this work, a fo rmal bid was conducted and Vasilj, Inc. submitted the lowest responsive bid. During the bid evaluation process, Vasilj, Inc. requested their bid to be withdrawn due to a clerical error. All other bids received exceeded the estimated budget. It is recommended that the City Council reject all bids received for the Duarte Road Sewer Capacity Improvement Project and direct staff to re-bid the project. BACKGROUND In 2006, the State Water Resources Control Board adopted the Waste Discharge Requirement Program for all publicly-owned sanitary sewer collection systems in California with more than one mile of sewer pipeline. Under this program, the City was required to prepare and implement a Sewer Syst em Management Plan (“SSMP”). The SSMP identifies routine preventative operation and maintenance activities that assist the City in achieving a goal of zero sewer system overflows. This is accomplished through annual inspections, routine cleaning of the se wer pipes, repair of broken pipes, and replacement of pipes flowing above their design capacity. Duarte Road Sewer Capacity Improvement Project June 4, 2019 Page 2 of 3 The City of Arcadia’s 2006 Sewer Master Plan study identified section s of sanitary sewer pipe on Duarte Road as inadequate in accommodating the current high demand flows and is at risk of experiencing sewer overflows. The existing 12-inch sewer pipe along Duarte Road between Baldwin Avenue and the connection point to the LACSD sewer trunk pipe needs to be replaced with a 16-inch sewer pipe to alleviate the potential of a sewer back up and overflow. 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 May 14, 2019, the City Clerk received five bids with the following results: Bidder Location Bid Amount Vasilj, Inc. Irwindale, CA $ 724,350 GRBCON, Inc. Baldwin Park, CA $ 798,478 Mike Prlich & Sons, Inc. Baldwin Park, CA $ 849,600 GRFCO, Inc. Brea, CA $ 993,000 MNR Construction, Inc. La Verne, CA $ 1,143,700 All bid documents were reviewed for content and the contractor’s background was investigated. During the bid evaluation process, the lowest bidder, Vasilj, Inc. requested their bid to be withdrawn due to a clerical error. The price for one of their bid items should have been more than what they indicated. All other bids received exceeded the estimated budget for this project of $750,000. The Public Works Services Department (“PWSD”) reviewed all bids and found that the cost of Polyethylene pipe material increased significantly due to high global demand for this pipe material. PWSD engineering staff will work on revising the scope of work to bring the project within budget, and rebid 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 $750,000 have been budgeted in the FY 2018-19 Capital Improvement Program for this project. Duarte Road Sewer Capacity Improvement Project June 4, 2019 Page 3 of 3 RECOMMENDATION It is recommended that the City Council reject all bids received for the Duarte Road Sewer Capacity Improvement Project and direct staff to re -bid the Project.