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REJECT BID FOR MAINTENANCE SERVICES FOR STORMWATER UNDERGROUND TREATMENT DEVICES
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion to reject one bid received for Maintenance Services for Stormwater Underground Treatment Devices (PUR17-016) pursuant to Stockton Municipal Code section 3.68.160(B).
It is further recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this motion.
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Summary
Council is asked to reject the one bid received for the maintenance of stormwater devices due to higher than anticipated prices. The Municipal Utilities Department (MUD) relied on contractors to maintain the City-owned Stormwater Underground Treatment Devices that are located at various locations throughout the City of Stockton. This routine maintenance is required to comply with the City’s National Pollutant Discharge Elimination System Permit (NPDES) No. CAS0085324, Order R5-2016-0040, held collectively with San Joaquin County.
On June 22, 2017, the City received one bid for this project from Bio-Clean Engineering of Sacramento in the amount of $683,183 for the five-year maintenance project. The bid is $288,058 or 73 percent over the original engineer’s estimate.
Stockton Municipal Code (SMC) section 3.68.160(B) provides that the City Council shall award a contract to the lowest responsible bidder, or reject all bids. Rejecting this bid and re-advertising the project will enable staff to provide ample outreach to achieve a larger pool of participants, revise the scope of work to include only those devices that are complex in nature, and decrease the contract time. It is recommended that Council approve a motion to reject the bid received.
DISCUSSION
Background
Stormwater underground treatment devices filter contaminants, such as debris, particulate matters, sediments, and hydrocarbons (diesel, gasoline, etc.) before discharging stormwater into receiving waters. These devices are used to improve the water quality objectives complying with the NPDES permit.
The city maintains eleven (11) stormwater underground treatment devices through stormwater assessment district and stormwater utility funds.
Present Situation
The project was advertised for bids on June 10, 2017. On June 22, 2017, one bid (Attachment A) was received with the following result:
|
COMPANY NAME |
BID AMOUNT |
|
Bio-Clean Engineering (Sacramento, CA) |
$683,183 |
|
Engineer’s Estimate |
$395,125 |
Bio-Clean Engineering of Sacramento, California, the apparent low bidder, submitted a bid in the amount of $683,183, which is $288,058 or 73 percent over the engineer’s estimate. The bid was regular in all aspects and met all qualifications required; however, it is in the City’s best interest to seek a more competitive pricing structure.
In response to the high bid, staff re-evaluated each device to determine if a revised scope of work and additional outreach could achieve increased participation and more competitive pricing.
Rejecting this bid and re-advertising the project will enable staff to conduct outreach to achieve a larger pool of participants, revise the scope of work to include only those devices that are complex in nature, and decrease the contract time.
Staff recommends that Council approve a motion to reject the bid received per Stockton Municipal Code section 3.68.160(B).
FINANCIAL SUMMARY
The recommended action has no financial impact. There is sufficient funding in the following Stormwater Assessment District Fund Accounts: 074-6951-540, 074-6957-540, 074-6958-540, 074-6962-540 and the Stormwater Fund Account 441-4431-571 to re-bid this project.
Attachment A - Project Bid Abstract