HomeMy WebLinkAbout2019-06-11; Public Financing Authority; ; Rejection of all bids received for The Crossings at Carlsbad Municipal Golf Course Lake Refurbishment ProjectPUBLIC FINANCING AUTHORITY
Staff Report
Meeting Date:
To:
From:
Staff Contact:
June 11, 2019
Chair and Board Members
Scott Chadwick, City Manager
Kyle Lancaster, Interim Parks & Recreation Director
kyle.lancaster@carlsbadca.gov or 760-434-2941
CA Review ~
Subject: Rejection of all bids received for The Crossings at Carlsbad Municipal Golf
Course Lake Refurbishment Project
Recommended Action
Adopt a Resolution rejecting all bids received for The Crossings at Carlsbad Municipal Golf
Course Lake Refurbishment Project {Contract No. PWS 19-690 PKS).
Executive Summary
The existing liners in two engineered lakes at The Crossings at Carlsbad Municipal Golf Course
(Golf Course) are leaking and need to be replaced. This project is to install new, high quality
geomembrane liners, and concrete aprons -at the edge of the lakes, which secure the liners.
On March 12, 2019, the Carlsbad Public Financing {Authority) approved the contract
documents, plans and specifications for The Crossings at Carlsbad Municipal Golf Course Lake
Refurbishment Project {Contract No. PWS 19-690 PKS), and authorized the City Clerk to
advertise the project for public bids (Resolution No. 77). On April 23, 2019, three sealed bids
for the project were received. Following a detailed review of the bids received, staff is
recommending the two lowest bids be rejected due to errors that constitute material
deviations. Staff is recommending the third bid also be rejected, as a matter of budgetary
discretion. Staff is thus recommending the Authority reject all bids received, consistent with
Carlsbad Municipal Code section 3.28.080{G)(3).
Discussion
Two engineered lakes are part of the original design of the Golf Course, which opened in the
summer of 2007. The larger, centrally located lake, has a size of approximately 2.6 acres, and a
capacity of approximately 7.6 million gallons of recycled water. This lake serves as the Golf
Course's primary irrigation source. The second lake has a size of approximately .8 acre, and a
capacity of approximately 1.45 million gallons of recycled water. It consists of a two-level,
decorative waterfall feature, which is visible from the intersection of College Boulevard and
Palomar Airport Road.
The existing liner in each lake is over 11 years old and needs to be replaced due to splits in
several locations, causing the loss of water, and the sedimentation of the lakes. The existing
liners have surpassed their ten-year warranty period, and their expected useful life. This
refurbishment project includes removal of the existing lake liner; minor re-grading and re-
June 11, 2019 Item #7 Page 1 of 6
compaction of the subsurface; removal of the aquatic planter shelves; minor repairs of the
shoreline; installation of high-quality geomembrane liner and the pouring of a concrete apron
at the edge of each lake to secure the liner in place. The geomembrane liner specified is a
heavyweight, 30-millimeter, reinforced polyethylene product.
On March 12, 2019, the Authority approved the contract documents, plans and specifications
for The Crossings at Carlsbad Municipal Golf Course Lake Refurbishment Project (Contract No.
PWS 19-690 PKS), and authorized the City Clerk to advertise the project for public bids. On
March 13, 2019, the project was advertised for bids, and on March 28, 2019, a mandatory pre-
bid meeting/tour was held at the project site. On April 23, three sealed bids for the
construction of the project were received. The bid amounts are reflected in the table below.
BIDDER BID AMOUNT
Performance Plumbing & Mechanical, Inc. $617,928.00
Dick Miller, Inc. $631,165.12
Whillock Contracting, Inc. $909,891.60
Following a detailed review of the bids received, staff determined that the bid from
Performance Plumbing & Mechanical, Inc. (Performance Plumbing), and the bid from Dick
Miller, Inc. (Dick Miller), were non-responsive due to errors. Staff's opinion is the errors are not
minor irregularities which the Authority could consider waiving. Rather, staff's opinion is that
the errors constitute material deviations -i.e., deviations that could have affected the amount
of the bidder's bid or given the bidder an advantage or benefit not provided to other bidders.
The attached bid review summary provides descriptions of the errors contained within the
Performance Plumbing bid and the errors contained within the Dick Miller bid, and the reasons
for staff's opinion that the errors constitute material deviations (Exhibit 2). Staff is therefore
recommending the Authority reject the bids from Performance Plumbing and Dick Miller.
The bid from Willock Contracting, Inc. (Willock Contracting) was $386,266 higher than the
engineer's construction estimate, and $291,963 and $278,726 higher than the bids of
Performance Plumbing and Dick Miller, respectively, for construction of the project. In
deference to budget discretion, staff is recommending the Authority also reject the bid of
Willock Contracting.
Fiscal Analysis
The estimated construction cost for this project is $523,525. Sufficient funds to cover the
estimated construction cost are available in the Golf Course Fund. A formal appropriation of
funds will be requested when staff return to the Authority for award of a construction contract.
Next Steps
Staff will review the bidding provisions and forms for the projects, make any revisions that may
reduce the potential for bidder errors/omissions, and re-advertise the projects for bids. The bid
solicitation period will be at least 30 days. Staff will then evaluate the responsive bids received,
and subsequently return to the Authority with a recommendation to award a construction
contract. The project is expected to be completed within 90 days after the award of a
construction contract.
June 11, 2019 Item #7 Page 2 of 6
Environmental Evaluation (CEQA)
This project has been determined to be exempt from environmental review per CEQA
Guidelines Section 15301, restoration or rehabilitation of deteriorated or damaged structures,
facilities, or mechanical equipment.
Public Notification
This item was noticed in accordance with the Ralph M. Brown Act and was available for public
viewing and review at least 72 hours prior to the scheduled meeting date.
Exhibits
1. Authority Resolution
2. Bid Review Summary
June 11, 2019 Item #7 Page 3 of 6
RESOLUTION NO. 78
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD PUBLIC
FINANCING AUTHORITY REJECTING ALL BIDS RECEIVED FOR THE
CROSSINGS AT CARLSBAD MUNICIPAL GOLF COURSE LAKE
REFURBISHMENT PROJECT (CONTRACT NO. PWS 19-690 PKS)
EXHIBIT 1
WHEREAS, on March 12, 2019, the Carlsbad Public Financing Authority (Authority) approved
the contract documents, plans and specifications for The Crossings at Carlsbad Municipal Golf Course
Lake Refurbishment Project (Contract No. PWS 19-690 PKS), and authorized the City Clerk to advertise
the project for public bids (Resolution No. 77); and
WHEREAS, on April 23, 2019, three sealed bids for the project were received; and
WHEREAS, staff is recommending the two lowest bids be rejected due to errors that constitute
material deviations; and
WHEREAS, staff is recommending the third bid also be rejected, as a matter of budgetary
discretion; and
WHEREAS, staff recommends the Authority resolve that it is desirable and in the public interest
to reject all bids received, in accordance with the provisions of Carlsbad Municipal Code 3.28.080{G)(3).
NOW, THEREFORE, BE IT RESOLVED by the Public Financing Authority Board of the City of
Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. The bids received on April 23, 2019 for The Crossings at Carlsbad Municipal Golf Course
Lake Refurbishment Project (Contract No. PWS 19-690 PKS) are rejected, in accordance
with Carlsbad Municipal Code section 3.28.080 (G)(3).
3. The City Clerk is authorized to return to the respective bidders all bid bonds received.
June 11, 2019 Item #7 Page 4 of 6
PASSED, APPROVED AND ADOPTED at a Special Meeting of the Public Financing Authority of the
City of Carlsbad on the 11th day of June, 2019, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Hall, Blackburn, Bhat-Patel, Schumacher, Hamilton.
None.
None.
J~J{fl£
\ BARBARA ENGLESON, Secretary
(SEAL)
June 11, 2019 Item #7 Page 5 of 6
THE CROSSINGS AT CARLSBAD MUNICIPAL GOLF COURSE LAKE REFURBISHME NT PROJECT
BID REVIEW SUMMARY
Contract No.: PWS 19-960 PKS Bid Open ing: April 23, 2019
Language from Notice Inviting Bids:
UNIT PRICES AND COMPUTATION OF BIDS
EXHIBIT 2
All bids are to be computed on the basis of the given estimated quantities of work, as indicated in
this proposal, times the unit price as submitted by the bidder. In case of a discrepancy between
words and figures, the words shall prevail. In case of an error in the extension of a unit price, the
corrected extension shall be calculated and the bids will be computed as indicated above and
compared on the basis of the corrected totals.
All prices must be in ink or typewritten. Changes or corrections may be crossed out and typed or
written in with ink and must be initialed in ink by a person authorized to sign for the Contractor.
Bids Received:
..
BIDDER BID AMOUNT
Performance Plumbing & Mechanical, Inc. $617,928.00
Dick Miller, Inc. $631,165.12
Whillock Contracting, Inc. $909,891.60
Performance Plumbing & Mechanical, Inc.
Bid Line Items Nos. A-9, A-10, A-12 : The bidder's extensions do not equal the unit price times the estimate
quantity (this is the case when you use the unit price in words or dollars).
Staff can't correct the extensions based on the language under "Unit Prices and Computation of Bids" under
the Notice Inviting Bids. These are computational/arithmetic errors that are material in nature because they
would be grounds for a mistaken bid under Public Contracting Code {PCC) section 5103. While the City has
discretion to waive inconsequential errors, the city cannot waive these as such because the bidder is entitled
to release its bid without forfeiture under the PCC, and therefore has an unfair advantage not available to
other bidders.
Dick Miller, Inc.
Bid Line Item No. A-3: The bidder wrote "Ten-Thousand Dollars" in words, but inco rrectly listed $15,000 in
total amount.
Bid Line Item Nos. A-9 through A-13 and A-16: The bidder listed incorrect unit price in words (listed total
extension price instead). Under "Unit Prices and Computation of Bids" in the Notice Inviting Bids, "in case of a
discrepancy between words and figures, the words shall prevail." The incorrect unit prices in words is what
staff must view as the bid "unit prices". The bid has computational/a rithmetic errors that are material in
nature because they would be grounds for a mistaken bid under PCC section 5103. The city cannot waive these
types of errors as inconsequential because the bidder is entitled to release its bid without forfeiture under the
PCC, and therefore has an unfair advantage not available to other bidders.
June 11, 2019 Item #7 Page 6 of 6