HomeMy WebLinkAbout2010/08/17 Item 6
CITY COUNCIL
AGENDA STATEMENT
;:?}:Vf:.. CITY OF
~~~ (HUlA VISTA
8/17/10, Item-0-
SUBMITTED BY:
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA REJECTING ALL BIDS FOR THE "SEWER
REPAIR PROJECT AT CALLE MESITA,;rHIRD AVENUE, AND
LA MEDIA IN THE CITY OF CHU /A VISTA, CA (CIP NO.
SW270)"
DIRECTOR OF PUBLIC WORKS
ASSISTANT DlR~CT R OF ENGINE
CITY MANAGE /'
ASSISTANT CITY ANAGER Cr I
4/5THS VOTE: YES D NO [g]
ITEM TITLE:
REVIEWED BY:
SUMMARY
On July 21, 2010, the Director of Public Works received three (3) sealed bids for the "Sewer
Repair Project at Calle Mesita, Third Avenue, and La Media in the City ofChula Vista, CA (CIP
No. SW270)" project. The project would rehabilitate existing broken sewer mains and laterals,
repair cracked sewer lines and rehabilitate existing manholes in various locations throughout the
City. The two lowest bids received were determined to be non-responsive and the third bid was
58% higher than the lowest bid. Therefore, staff recommends that all bids be rejected and re-bid
with a larger sewer rehabilitation project.
ENVIRONMENTAL REVIEW
Not applicable.
RECOMMENDATION
Council adopt the resolution.
BOARDS/COMMISSION RECOMMENDATION
Not applicable.
DISCUSSION
The City's sewer rehabilitation program identifies problematic areas within the City's sewer
network by perfoffi1ing l11spections using closed-circuit television and then determining which
sewer mal11S require rehabilitation. Segments of pipe that are cracked are re-lined to prevent
groundwater infiltration or leaching of raw sewage into the ground, as well as stmctural failure.
Based on the results of these inspections, staff determined that the rehabilitation of existing
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8/17/10, Item~
Page 2 of 3
sewer lines within Calle Mesita, Third Avenue, and La Media Road should proceed as soon as
possible.
On July 2,2010, Public Works staff advertised the "Sewer Repair Project at Calle Mesita, Third
Avenue, and La Media Road in the City of Chula Vista, CA (C]F No: SW270)" project. The
followmg bids were received.
I CONTRACTOR I COMMENT 18
PALM ENGINEERING, INC. - SAN DIEGO, CA (NON-RESPONSIVE - DID NOT $160,413
SIGN ADDENDUM)
.
SC V ALLEY ENGINERING, INC. - EL CAJON, CA (NON-RESPONSIVE - DID NOT 8
SIGN ADDENDUM)
TC CONSTRUCTION COMPANY, INC.- 58% HIGHER COST THAN ~",;,;
SANTEE, CA APPARENT LOW BIDDER
The low bid submitted by Palm Engineering, Inc. [or $]60,413 is $43,902 below the Engineer's
estimate of $204,315; thc Engineer's estimate was based on average prices for similar types of
work completed during the last two years. However, Palm Engineering, Inc. and the second
lowest bidder, SC Valley Engineering, ]nc., both failed to sign the addendum issued before the
bid opening date of July 21, 2010. Due to the City's procedures stated in the bid package and the
addendum, a bid would be considered non-responsive and incomplete without the signed
addendum. Therefore, both Palm Engineering, Inc. and SC Valley Engineering, Inc. are
considered non- responsive.
The third lowest bidder, TC Constmction Company, ]nc., submitted a bid of $253,555, which is
$49,240 (25%) higher than the Engineer's estimate of $204,315 and 58% higher than Palm
Engineering's bid proposal. TC Construction's submitted bid is more than staff anticipated for
the work to be constmcted.
Due to the large cost differential between the apparent low bidder and the high bidder (58%
cost). and in the interest of the City, staff proposes that all bids be rejected at this time. Upon
rejection of all bids, staff will re-advertise these project locations with the SW255B Sewer
Rehabilitation Project, which is similar in scope. Further, contractors will be required to
complete these locations as their first order of work. SW255B will be advertised in late-August
2010. It is anticipated that the City will receive much more competitive bids for the work.
DECISION MAKER CONFLICT
StatT has reviewed the property holdings of the City Council and has found a conflict exists, in
that Councllmember McCann has property holdings within 500 feet of the boundaries of the
property which is the subject ofthis action.
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CURRENT YEAR FISCAL IMPACT
None at this time.
ONGOING FISCAL IMPACT
Not applicable.
ATTACHMENTS
1. Location Plats
Prepared by Poten G San Pedro, S'r Engineering Technician, Public Works Dept.
Jose Luis Gomez,-Land Surveyor/Project Manager, Public 1Vorks Dept.
J:\Engincer\A GENDA ICAS201 OI08-17-1Ql.SW270A J J JRejecllOn.doc
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8/17/10, Item~
Page 3 of 3
ATTACHMENT 1
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106-10-2010 OF 5 SHTS.
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DRAWN BY' TITLE: PR[PARED BY'
POTE:N G. SAN PEDRO CITY OF CHULA VIS I A POTE:N G, SAN PED,c1O
DAlE. \SH[ET5 S' H/ER REPAIDS APPRO'/E:DBY
06 -10- 2010 OF 5 SH TS. c: 11 \ \ 1\ GR[G TSCHCRCH
6-10
RESOLUTION NO. 2010-
RESOLUTION OF THE CITY COUNCIL OF TI-IE CITY OF
CHULA VISTA REJECTING ALL BIDS FOR THE "SEWER
REPAIR PROJECT AT CAL,LE MESITA, THIRD AVENUE,
AND LA MEDIA IN THE CITY OF CHULA VISTA, CA (CIP
NO. SW270)"
WHEREAS, on July 21, 2010, the Director of Public Works received three (3) sealed
bids for the "Sewer Repair Project at Calle Mesita, Third A venue, and La Media in the City of
Chula Vista, CA (CIP No. SW-270)" project as follows:
I CONTRACTOR I COMMENT I~
PALM ENGINEERING, INC. - SAN (NON-RESPONSIVE - DID $160,413
DIEGO, CA NOT SIGN ADDENDUM)
SC VALLEY ENGINERING, INC. - EL (NON-RESPONSIVE - DID $213,877
CAJON, CA NOT SIGN ADDENDUM)
TC CONSTRUCTION COMPANY, INC.- 58% HIGHER COST THAN $253,555
SANTEE, CA APPARENT LOW BIDDER
and;
WHEREAS, the apparent low bid by Palm Engineering, Inc. of $160,413 is $43,902
(21.5%) below the Engineer's estimate of $204,315; and
WHEREAS, Palm Engineering, Inc. and the apparent second lowest bidder, SC Valley
Engineering, Inc., both failed to sign the only addendum dated July 13,2010 prior to the bid
opening; and
WHEREAS, failure to sign the addendum renders bids submitted by Palm Engineering,
Inc. and SC Valley Engineering, Inc. non- responsive; and
WHEREAS, the lowest responsive bid submitted by TC Construction, Inc. of$253,555 is
$49,240.00 (25%) above the Engineer's estimate 01'$204,315; and
WHEREAS, the engineer's estimate was based on average prices for similar types of
work completed during the last two years; and
6-11
Resolution No.
Page 2
WHEREAS, due to the large cost differential of 58% between Palm Engineering, Inc.'s
bid and TC Construction, Inc.'s bid; and
WHEREAS, in the best interests of the City, all bids shall be rejected at this time; and
WHEREAS, staff shall re-advertise this project with SW255B Sewer Rehabilitation
Project, which is similar in scope.
NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista
does hereby reject all submitted bids received for the construction of "Sewer Repair Project at
Calle Mesita, Third Avenue, and La Media in the City of Chula Vista, CA (CIP No. SW270)"
project.
BE IT FURTHER RESOLVED that after rejecting all bids, staff shall re-advertise this
project with the SW255B Sewer Rehabilitation Project, which is similar in scope.
Presented by
Richard A. Hopkins
Director of Public Works
6-12