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REJECT ALL BIDS FOR THE THORNTON AND DAVIS ROADS SANITARY SEWER PUMP STATION REHABILITATION AND THE DON AVENUE AND SANTIAGO WAY SANITARY SEWER PUMP STATION REHABILITATION
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion to reject all bids received for construction of the Thornton and Davis Roads Sanitary Sewer Pump Station Rehabilitation, Project No. M13009, and the Don Avenue and Santiago Way Sanitary Sewer Pump Station Rehabilitation, Project No. M13010, pursuant to Stockton Municipal Code (SMC) section 3.68.160(B).
It is also 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
As part of the Capital Improvement Program, rehabilitation projects were created for the Thornton and Davis Roads Sanitary Sewer Pump Station (Thornton Road Pump Station) and the Don Avenue and Santiago Way Sanitary Sewer Pump Station (Don Avenue Pump Station). The purpose of the projects was to rehabilitate the wet wells, install permanent bypass piping, and replace the pump controls and instrumentation at each pump station.
On June 25, 2020, the City received two (2) bids for the projects. The bids were significantly higher than the engineer’s estimate. There are insufficient funds to award the project. Following an initial evaluation of the bids and project design, staff believes refining the scope and project requirements may result in obtaining bids within the available budget. Pursuant to SMC section 3.68.160(B), which states that “Within the time set forth in the specifications, the City Council shall award a contract to the lowest and best regular responsible bidder, or reject all bids,” it is recommended the City Council approve a motion to reject all bids received and rebid the projects. Staff will evaluate cost saving opportunities in the design and scope of the projects to facilitate future award of the projects within available budget.
DISCUSSION
Background
The Municipal Utilities Department (MUD) operates and maintains the City’s sanitary sewer system. Wastewater is collected by the sanitary sewer collection system and pumped by sanitary sewer pump stations to the Regional Water Control Facility for treatment and discharge.
The existing Thornton Road Pump Station is located at 8603 Thornton Road and was originally constructed in 1974. The existing Don Avenue Pump Station is located at 2414 Santiago Way and was originally constructed in 1972.
As part of the Capital Improvement Program, rehabilitation projects were created for the Thornton Road and the Don Avenue Pump Stations to rehabilitate the wet wells, install permanent bypass piping, and replace the pump controls and instrumentation at each pump station. The pump station components, while currently functioning, are past their useful life.
Present Situation
On May 30, 2020, the MUD advertised the projects in the Stockton Record and posted the projects to the City’s Bid Flash webpage. Additionally, a notice with a brief project description was mailed to 107 contractors holding Class “A” licenses and 2,911 notifications were sent through Ask Stockton.
A mandatory pre-bid conference meeting was held on June 11, 2020, with six (6) prospective bidders in attendance. A field visit was conducted after the pre-bid conference. On Thursday, June 25, 2020, two (2) sealed bids were received and publicly opened by the City Clerk with the following results:
|
COMPANY NAME |
LOCATION |
BID PRICE |
|
GSE Construction Company Inc. |
Livermore, CA |
$ 1,399,300 |
|
Swierstok Enterprise Inc., dba Pro Builders |
Orangevale, CA |
$ 955,000 |
|
Engineer’s Estimate |
|
$ 600,000 |
The bid received by the apparent low bidder, Swierstok Enterprise, Inc., doing business as Pro Builders, is 59 percent higher than the engineer’s estimate. It was determined that the significant difference between the engineer’s estimate and both contractor bids might be attributed to project requirements, escalating prices, and the lack of available contractors willing to bid the project. Staff will evaluate cost saving opportunities in the design and scope of the projects to facilitate future award of the projects within available budget.
SMC section 3.68.160(B) provides that the City Council shall award a contract to the lowest and best regular, responsible bidder or reject all bids. Since the project scope and design will be refined, and sufficient funding is not available to award a contract, staff recommends the City Council approve a motion to reject all bids and re-advertise for bids.
FINANCIAL SUMMARY
There is no impact to the City’s General Fund, or any other unrestricted fund, from the recommended action.