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Home My WebLink About2007/05/01 Item 11 CITY COUNCIL AGENDA STATEMENT 4/24/07, Item /1 ITEM TITLE: RESOLUTION REJECTING BIDS FOR THE "FUEL TANK REPLACEMENT AT THE JOHN LIPPITT PUBLIC WORKS CENTER, IN THE CITY OF CHULA VISTA, CA (GG-187)" PROJECT DIRECTOR OF GENERAL SERVICES ~ ~, A DIRECTOR OF PUBLIC WO~OPERAtIONS;,,/ INTERIM CITY MANAGER dl 4/5THS VOTE: YES 0 NO [8J SUBMITTED BY: REVIEWED BY: BACKGROUND At 2:00 p.m. on Thursday, January 25, 2007 the Director of General Services received sealed bids for the "Fuel Tank Replacement at the John Lippitt Public Works Center, in the City of Chula Vista, CA (GG-187)" project. The work consists of removal and replacement of two 20,000-gallon existing fuel tanks located at the John Lippitt Public Works Center including demolition, labor, material, equipment and transportation necessary to complete the project. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act and has determined that the project qualifies for a Class 2 categorical exemption pursuant to Section 15302 (Replacement or Reconstruction) ofthe State CEQA Guidelines. Thus, no further environmental review is necessary. RECOMMENDATION Council adopt resolution rejecting bids for the "Fuel Tank Replacement at the John Lippitt Public Works Center, in the City ofChula Vista, CA (GG-187)" project. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION The project provides for the removal and replacement of two 20,000-gallon fuel tanks below ground at the John Lippitt Public Works Center. There have been numerous repairs to the existing fuel tanks that were installed during the original construction of the former SDG&E facility. 11-1 4/17/07, Item~ Page 2 of 2 The engineering services of Gary Engineering, Inc. were retained for the preparation of the project's scope of work and plans. Staff advertised the project on January 5, 2007. Staffreceived and opened bids on January 25, 2007 from nine (9) contractors to perform the work as follows (listed in order of base bid amount): Contractor Base Bid Ahrens Corporation - San Diego, CA $398,106.00 Jenal Engineering - Lemon Grove, CA $426,463.00 JEM Industries - Tustin, CA $454,289.00 Insight Environmental, Engineering & Construction, Inc. - Diamond Bar, CA $459,786.00 Western Pump, Inc. - San Diego, CA $498,993.00 Jauregui & Culver, Inc. - Escondido, CA $499,995.74 Angus Asphalt, Inc. - Santee, CA $507,842.76 California Hazardous Services, Inc. - Santa Ana, CA $544,938.00 Fleming Environmental, Inc. - Buena Park,CA $549,750.00 The low bid by Ahrens Corporation is higher than the project's range of $295,000 to $310,000. Based on the bids received, there are not enough funds in the project to move forward. At this time, staff is recommending to redesign the below ground fuel tanks with above ground fuel tanks. Gary Engineering recommends not placing the fuel tanks below ground due to the inherent maintenance and repairs associated with this type of installation. Gary Engineering has made a strong recommendation to place the fuel tanks above ground for ease of repairs and maintenance and a reduction in installation costs. Upon confirmation and availability of funds, the project will be re-advertised and re-bid with the above ground design. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet ofthe boundaries of the property, which is the subject of this action. FISCAL IMPACT There will be minor staff costs to re-bid the project. ATTACHMENTS None. Prepared by: Dick Thompson. Sr. Building Project Supervisor. General Services Dept. M:IGeneral ServiceslGS AdministrationlCouncil AgendalGG 187 Fuel Tank Rplcmt @ PWCIReject bids Al13.doc 11-2 RESOLUTION 2007- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA REJECTING BIDS FOR THE "FUEL TANK REPLACEMENT AT THE JOHN LIPPITT PUBLIC WORKS CENTER, IN THE CITY OF CHULA VISTA, CA (GG-I87)" PROJECT WHEREAS, the Director of General Services received sealed bids for the "Fuel Tank Replacement at the John Lippitt Public Works Center, in the City of Chula Vista, CA (GG-187)" project. on January 25, 2007; and WHEREAS, the work consists of removal and replacement of two 20,000-gallon existing fuel tanks located at the John Lippitt Public Works Center including demolition, labor, material, equipment and transportation necessary to complete the project; and WHEREAS, the engineering services of Gary Engineering, Inc. were retained for the preparation of the project's scope of work and plans; and WHEREAS, bids were received from nine (9) contractors to perform the work as follows (listed in order of base bid amount): Contractor Base Bid Ahrens Corporation - San Diego, CA $398,106.00 Jenal Engineering - Lemon Grove, CA $426,463.00 JEM Industries - Tustin, CA $454,289.00 Insight Environmental, Engineering & Construction, Inc. - Diamond Bar, CA $459,786.00 Western Pump, Inc. - San Diego, CA $498,993.00 Jauregui & Culver, Inc. - Escondida, CA $499,995.74 Angus Asphalt, Inc. - Santee, CA $507,842.76 California Hazardous Services, Inc. - Santa Ana, CA $544,938.00 FleminG' Environmental, Inc. - Buena Park,CA $549,750.00 ; and WHEREAS, the low bid by Ahrens Corporation is higher than the project's range of $295,000 to $310,000; and WHEREAS, based on the bids received, there are not enough funds in the project to move forward; and WHEREAS, staff is recommending to redesign the below ground fuel tanks with above ground fuel tanks; and 11-3 WHEREAS, Gary Engineering recommends not placing the fuel tanks below ground due to the inherent maintenance and repairs associated with this type of installation and has made a strong recommendation to place the fuel tanks above ground for ease of repairs and maintenance and a reduction in installation costs; and WHEREAS, upon confirmation and availability of funds, the project will be re-advertised and re-bid with the above ground design. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby rejecting bids for the "Fuel Tank Replacement at the John Lippitt Public Works Center, in the City ofChula Vista, CA (GG-187)" Project. Presented by Approved as to form by Jack Griffin Director of General Services 0\ ~ · 4)\~~\ \ .~'\~,~~ Ann Moore City Attorney \ 11-4