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HomeMy WebLinkAboutItem 11f - Reject bids for the Sewer Main Replacement ProgramReject Bids for the Sewer Main Replacement Program March 2, 2021 Page 1 of 2 DATE: March 2, 2021 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 SEWER MAIN REPLACEMENT PROGRAM AND DIRECT STAFF TO RE-PROGRAM IN THE FISCAL YEAR 2021-22 CAPITAL IMPROVEMENT PROGRAM BUDGET 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 future sewer demands. A formal bid was conducted and MNR Construction, Inc. submitted the lowest responsive bid. During the bid evaluation process, MNR Construction, Inc. requested their bid to be withdrawn due to a clerical error.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 Sewer Main Replacement Program and direct staff to re-bid the project. BACKGROUND The City of Arcadia’s 2006 Sewer Master Plan study identified sections of sanitary sewer pipe on Duarte Road as inadequate in accommodating the current high demand flows and 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 accommodate future sewer demands and alleviate the potential of a sewer back up. 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 February 2, 2021, the City Clerk received six bids with the following results: Reject Bids for the Sewer Main Replacement Program March 2, 2021 Page 2 of 2 Bidder Location Bid Amount__ __ MNR Construction, Inc. La Verne, CA $ 768,500 GRFCO, Inc. Perris, CA $ 1,017,600 GRBCON, Inc. Baldwin Park, CA $ 1,028,418 Mike Prlich & Sons, Inc. Baldwin Park, CA $ 1,093,900 Aid Builders, Inc. Los Alamitos, CA $ 1,259,350 Mladen Buntich Construction Upland, CA $ 1,455,400 All bid documents were reviewed for content. During the bid evaluation process, the lowest bidder, MNR Construction, 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 project budget of $900,000. The Public Works Services Department (“PWSD”) reviewed all bids and found that bids received were considerably higher than anticipated due to a less competitive bidding environment and increased trucking costs, which may have resulted from the pandemic. PWSD engineering staff will review the project scope and specifications to determine if changes are needed. The project will be re-programed in Fiscal Year 2021-22 Capital Improvement Program budget. 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 $900,000 have been budgeted in the FY 2020-21 Capital Improvement Program for this project. Staff will review the project scope and specifications and re-program this project in the FY 2021-22 Capital Improvement Program, making adjustments to the project scope and/or funding as needed. RECOMMENDATION It is recommended that the City Council reject all bids received for the Sewer Main Replacement Program and direct staff to re-program in the Fiscal Year 2021-22 Capital Improvement Program budget.