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Home My WebLink About1989-09-05; City Council; 10245; Rejection bids and Readvertise bids-Agua HediondaCIT" OF CARLSBAD - AGENDA BILL # O I O< OO .//? ^ * / **C"""^ADM r*s &\ ^i *J liTO.9/05/89 DEPT. MP TITLE: REJECTION OF BIDS AND AUTHORIZATION TO READVERTISE BIDS FOR CONSTRUCTION OF THE AGUA HEDIONDA SEWAGE PUMP STATION, PROJECT NO. 3303 DEPT. HD.X2Z^1 CITY ATTY\TA CITY MQR^y RECOMMENDED ACTION: Adopt Resolution No. »/" s* rejecting all construction bids and authorizing the City Clerk to readvertise for bids for the construction of improvements to the Agua Hedionda Sewage Pump Station, Project No. 3303. ITEM EXPLANATION: On June 20, 1989, the City Council adopted Resolution No. 89-186, authorizing the advertisement of improvements and capacity expansion to the existing Agua Hedionda Sewage Pump Station, Project No. 3303. The facility transmits sewage from the City of Vista and the northern end of the City of Carlsbad to the Encina Water Pollution Control Facility. The existing Agua Hedionda Pump Station is owned by the City of Vista (61.5%) and the City of Carlsbad (38.5%), however, operated by Encina. The present 24.5 MGD (million gallons per day) capacity of the pump station is inadequate for present peak wet weather flows. By replacing two (2) small obsolete pumps, the sewage pump station's capacity can be increased to 34.5 MGD. The City of Carlsbad Sewer Master Plan forecasts the peak flow at build-out to be 30.7 MGD. The additional capacity provides a desirable margin of safety in the event flows exceed the forecasts. The improvements to the Agua Hedionda Sewage Pump Station include two (2) new 8,000 gallon per minute pumps with variable frequency motor drives, a new system control panel, enhanced remote monitoring and emergency alarms, a mechanical bar screen to remove debris, two (2) new standby generators, and a 400,000 gallon overflow basin. These improvements will expand the station's capacity to meet future demand, reduce maintenance costs, and improve reliability. Additionally, the overflow basin will preclude discharge into Agua Hedionda Lagoon in the event of an emergency or equipment breakdown. On August 16, 1989, the following two (2) bids were received by the City: Hunter Corporation $ 998,500 Cal Southwest Corporation, Inc. $1,098,000 The Purchasing Officer and Municipal Projects staff have spent considerable time reviewing the two (2) submitted bids for the project. Upon review, the bids reveal the following: , ^ */ ^Page 2 of Agenda Bill No. The bid submitted by the Hunter Corporation did not include the required unit prices for the numerous bid line items. Hunter submitted solely a total project cost bid. Staff considers the lack of unit price designations for each bid line item a material error in the bid submitted by the Hunter Corporation. The low bid submitted for the project is $178,500 over the engineer's estimate. The second bid submitted for the project is $278,000 over the engineer's estimate. Section 21208 of the Public Contracts Code, which governs public agency contracts, enables the local jurisdiction in its discretion to reject all bids and elect to abandon the project, accomplish the project with the public agency's employees, or readvertise for bids. It is staff's recommendation that the City Council reject both bids submitted for the project for the above two (2) reasons and readvertise for bids for the construction of the project. The City of Vista has been contacted and agrees with the staff recommendation. The improvements to the Agua Hedionda Sewage Pump Station are considered specialty work in that only those firms familiar with sanitary engineering public works projects tend to competitively bid their construction. In order to encourage bid response during the second advertisement of bids, staff has proceeded to modify the construction documents to include the restructuring of the phasing to enable installation of the containment/spill basin after April 1, 1990, in accordance with the conditions contained in the City's Coastal Development Permit issued by the California Coastal Commission for the project. The current approach was to construct the basin prior to November 1, 1989, so as to avoid the winter rainy season. Additionally, the project's design engineers, Wilson Engineering, Incorporated have identified two (2) major items which will be bid as additive alternatives thereby providing flexibility in the award and closing the gap between the potential total bid prices and the engineer's estimate. FISCAL IMPACT: Funds in the amount of $350,000 have been appropriated to project account number 512-820-1850-3303. Project costs will be shared between the City of Vista and the City of Carlsbad in proportion to their respective ownership percentages (61.5% and 38.5%). Staff will make a recommendation to the Council regarding additional funds, if required, at the time of award of the construction bid and approval of the Vista/Carlsbad agreement. Page 3 of Agenda Bill No. /^ *? r ^ EXHIBITS; 1. Location Map 2. Resolution No. o/~ ° rejecting all construction bids and authorizing the City Clerk to readvertise for bids for the construction of improvements to the Agua Hedionda Sewage Pump Station, Project No. 3303. 3. Letter dated August 24, 1989, from the Purchasing Officer to the Hunter Corporation. 4. Letter dated August 24, 1989, to Cal Southwest Construction, Incorporated . 5. Plans and specifications are on file in the Municipal Department . LOCATION MAP HIGHWAY 78 AQUA HEDIONDA LIFT STATION IL^PALOMAR AIRPOPT ROAD PROJECT NAME AGUA HEDIONDA LIFT STATION PROJ. NO. 3303 EXHIBIT 1 1 RESOLUTION NO. 89-323 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, REJECTING 3 ALL CONSTRUCTION BIDS, AND AUTHORIZING THE CITY CLERK TO READVERTISE FOR BIDS 4 FOR THE CONSTRUCTION OF THE AGUA HEDIONDA SEWAGE PUMP STATION. PROJECT NO. 3303 5 6 WHEREAS, the City Council of the City of Carlsbad, 7 California, has determined it is necessary and in the public 8 interest to construct an upgrade of the Agua Hedionda Sewage Pump 9 Station; and 10 WHEREAS, the two (2) construction bids received by the 11 City of Carlsbad on August 16, 1989, have been reviewed by the City 12 and both determined to be in excess of the identified engineer's 13 estimate for the project as well as one (1) bid not containing the 14 required unit costs for each bid line item as prescribed in the 15 Notice of Advertisement for Construction Bids and bid documents for 16 said project; and 17 WHEREAS, modified plans and specifications for the IQ furnishing of all labor, materials, tools, equipment, 19 transportation and other expenses necessary or incidental for said 20 projects, have been prepared and are on file in the Municipal 21 Projects Department of the City of Carlsbad; and 22 WHEREAS, the City Council of the City of Carlsbad, 23 California, has appropriated funds for the construction of said 24 projects; and 25 WHEREAS, the City Council of the City of Carlsbad, in its 26 discretion and in accordance with the provisions of the Public 27 Contracts Code may elect to reject all submitted bids for said 28 project. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California as follows: 1. That the above recitations are true and correct. 2. That the City Council of the City of Carlsbad, California, in accordance with the provisions of the Public Contracts Code and for the reasons hereinabove stated, hereby rejects all bids received for the project. 3. That the modified plans and specifications as hereby presented are approved. 4. That the City Clerk of the City of Carlsbad is hereby authorized and directed to publish, in accordance with law, Notice to Contractors inviting bids for the construction of the above referenced sewage pump station. PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City Council held on the 5th day of September 1989 by the following vote, to wit: AYES: Council Members Lewis, Kulchin, Pettine, Mamaux and Larson NOES: None ABSENT: None t/t'""CLAUDE A. LEWIS, Mayor ATTEST: / ALETHA L. RAUTENKRANZ, City Clerk (SEAL) City of Carlsbaday •^•••••••••••••••^••••••••••••iB August 24, 1989 T.K. Johnson Hunter Corporation 2451A Impala Drive Carlsbad CA 92008 RE: Agua Hedionda Pump Station Dear Mr. Johnson: The review of the bids for the above referenced project has been completed by the City Engineer and th« Municipal Projects Manager. Their recommendation to the City Council on September 5th, will be to reject the bids and readvertise for the project. This action is based upon the following: - Unit prices were omitted on the bid submitted by Hunter Corporation. - The low bid was approximately $200,000 over the engineer's estimate. - The Public Contract code allows the City Council to reject and readvertise for bids. If you have any questions concerning the staff's recommendation to the city Council, please call me at the number listed below. Pure RP/bf i-letcher Officer c: City Engineer Municipal Projects Manager 1200 Carlsbad Village Drive Carlsbad, California 92008-1989 * (619) 434-2803 Citv of Carlsbad i^ii^.K.^i.1. August 24, 1989 Janes A. Rangers Cal Southwest Construction, Inc. 123 Roosevelt Avenue National City, CA 92050 RE: Agua Hedionda Pump station Dear Mr. Rangers; The review of the bids for the above referenced project has been completed by the city Engineer and the Municipal Projects Manager. Their recommendation to the city Council on September 5th, will be to reject the bids and readvertise for the project. This action is based upon the following; - Unit prices were omitted on the bid submitted by HunterCorporation. - The low bid was approximately $200,000 over the engineer's estimate. - The Public Contract Code allows the city Council to rejectand readvertise for bids. If you have any questions concerning the staff's recommendation to the City Council, please call me at the number listed below. Very truly yours, Ruth>Tletcher ^ Purchasing Officer RP/bf c: City Engineer Municipal Projects Manager 12OO Carlsbad Village Drive * Carlsbad. California 92008-1989 - (619)434-2803