HomeMy WebLinkAbout2023-03-07; Municipal Water District; ; Reject Bids Received and Authorize the Secretary of the Board to Re-Advertise for Bids for the El Fuerte and Maerkle Motorized Valves ProjectCA Review GH
Meeting Date: March 7, 2023
To: President and Board Members
From: Scott Chadwick, Executive Manager
Staff Contact: Dave Padilla, Utilities Engineering Manager
dave.padilla@carlsbadca.gov, 442-339-2356
Sean Diaz, Utilities Senior Engineer
sean.diaz@carlsbadca.gov, 442-339-2350
Subject: Reject Bids Received and Authorize the Secretary of the Board to Re-
Advertise for Bids for the El Fuerte and Maerkle Motorized Valves Project
Districts: 2, 3
Recommended Action
Adopt a resolution rejecting the bids received and authorizing the Secretary of the Board of
Directors to re-advertise for bids for the El Fuerte and Maerkle Motorized Valves Project.
Executive Summary
The project will install new motorized valves and actuators1 on existing water transmission
mains that will:
•Allow remote operation of the water system through the Carlsbad Municipal Water
District Supervisory Control and Data Acquisition system
•Improve water operations and worker safety
The project improvements will be added to the El Fuerte Street pipeline at Rancho Pancho and
the Maerkle Reservoir.
The district received three bids for the project. Staff determined that the three bids are not
nonresponsive because they did not include a required form.
Given that all three bids were determined to be nonresponsive, and all three bids exceeded the
engineer’s estimate by 42% or more, staff recommend the Carlsbad Municipal Water District
(CMWD) Board reject the bids received, consistent with Carlsbad Municipal Code Section
3.28.080 - Construction projects, subsection (I)(3).
1 An actuator is the device that “actuates,” or moves, a valve open or closed.
March 7, 2023 Item #6 Page 1 of 6
MUNICIIPAL WATER D IISTRIC'f
Staff Report
Explanation & Analysis
The El Fuerte and Maerkle Motorized Valves Project, Capital Improvement Program Project
Nos. 5007, 5009 and 5050 will install new motorized valves, which are specialized, critical items
for the project. The triple-offset, metal-seated butterfly valves and electric motor actuators are
subject to supply constraints, long procurement schedules and high costs.
Nov. 15, 2022 - CMWD Board of Directors adopted Resolution No. 1689, approving the plans
and specifications, and authorizing staff to advertise for construction bids for the project.
Nov. 23, 2022 - Staff issued a notice inviting bids for the project.
Jan. 18, 2023 - The district received three bids.
The three bids received exceeded the engineer’s estimate of $1,667,500 by 42% or more, as
follows:
Metro Builders & Engineers Group, Ltd. $2,375,034
CCL Contracting, Inc. $2,502,700
Orion Construction Corporation $2,787,000
Considering the importance of having the bidder specify the valves and actuators intended for
use, the bid provisions required contractors to submit a completed form with the bid, called a
“Listing of Manufacturers,” to identify the manufacturers for valves and actuators to be used in
the project. The form was issued as part of an addendum during the bid advertisement and
incorporated into the bid documents. Staff determined all three bids lacked the required form
and determined all of the bids to be nonresponsive.
Staff will revise the bid provisions to include the Listing of Manufacturers form in the checklist
of required documents to be submitted with the bid, to increase the likelihood of receiving
responsive bids. Staff will re-advertise the project with the intent to solicit additional bids.
Staff recommend rejecting the bids received and readvertising the project.
Fiscal Analysis
Funding for the project has been appropriated from the following enterprise funds.
Cathodic Protection Program
Capital Improvement Program Project No. 5007
Total appropriation to date $1,796,700
Total expenditures and encumbrances to date -$209,100
Total available funding $1,587,600
Maerkle Facility Improvements
Capital Improvement Program Project No. 5009
Total appropriation to date $2,735,200
Total expenditures and encumbrances to date -$1,505,600
Total available funding $1,229,600
March 7, 2023 Item #6 Page 2 of 6
The total available funding is $3,617,300. However, not all of the available budget for Capital
Improvement Program Project No. 5007 is appropriated for this particular valve project.
Options
Staff provide the following options for the CMWD Board’s consideration:
1. Adopt a resolution rejecting the bids received and authorizing the Secretary of the
Board of Directors to re-advertise for bids for the El Fuerte and Maerkle Motorized
Valves Project, Capital Improvement Program Project Nos. 5007, 5009 and 5050
Pros
• Provides an opportunity to solicit new bids
• Re-bidding is expected to yield responsive bids in conformance with the bid
requirements
• Avoids the likelihood of bid protests
Cons
• Delays start of construction of necessary improvements
2. Do not adopt the resolution
Pros
• None identified
Cons
• Three nonresponsive bids would have been submitted with no action taken, and
contractors would likely protest
• Further delays start of construction of necessary improvements
• Further increases in construction costs may occur due to inflation and supply
chain issues
Staff recommend Option 1 for the CMWD Board’s approval.
Next Steps
With the CMWD Board’s approval, staff will revise the bid provisions for the project and re-
advertise with a new bid solicitation. Staff will evaluate the bids received and the lowest
responsive and responsible bidder will be identified. Staff will then return to the CMWD Board
with a recommendation to award a construction contract, which is expected to be in summer
2023.
The estimated construction duration is 18 months. Staff anticipate completion of construction
in spring 2025.
Normally closed valve (install motorized valve)
Capital Improvement Program Project No. 5050
Total appropriation to date $985,000
Total expenditures and encumbrances to date -$184,900
Total available funding $800,100
March 7, 2023 Item #6 Page 3 of 6
Environmental Evaluation
The City Planner has determined that rejecting all bids is exempt from environmental review
per California Environmental Quality Act Guidelines Section 15270 (a); which states that CEQA
does not apply to projects which a public agency rejects or disapproves. With respect to re-
advertisement for bids, the City Planner has also determined the project is within the scope of
the adopted 2019 Water Master Plan Program Environmental Impact Report and related
addenda as stated in CMWD Board of Director’s Resolution No. 1689 adopted Nov. 15, 2022.
Exhibit
1. CMWD Board resolution
March 7, 2023 Item #6 Page 4 of 6
RESOLUTION NO. 1699
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD
MUNICIPAL WATER DISTRICT OF THE CITY OF CARLSBAD, CALIFORNIA,
REJECTING THE BIDS RECEIVED AND AUTHORIZING THE SECRETARY OF THE
BOARD OF DIRECTORS TO RE-ADVERTISE FOR BIDS FOR THE EL FUERTE AND
MAERKLE MOTORIZED VALVES PROJECT
WHEREAS, the Carlsbad Municipal Water District Board has determined that it is necessary,
desirable and in the public interest to install new motorized valves and accuators on existing water
transmission mains for the El Fuerte and Maerkle Motorized Valves Project, Capital Improvement
Program Project Nos. 5007, 5009 and 5050, or Project; and
WHEREAS, on Nov. 15, 2022, the Carlsbad Municipal Water District Board adopted Resolution
No. 1689, approving the plans and specifications, and authorizing the advertisement of bids for the
Project; and
WHEREAS, an addendum to the bid provisions required the bidders to include a "Listing of '
Manufacturers" form to identify the manufacturers for valves and actuators to be used in the Project;
and
WHEREAS, on Jan. 18, 2023, staff received three bids for construction of the Project; and
WHEREAS, the bids received for the project were deemed non-responsive for failing to include
the required Listing of Manufactures form; and
WHEREAS, it is necessary, desirable and in the public interest for the Carlsbad Municipal Water
District Board to follow the provisions in Carlsbad Municipal Code, or CMC, Section 3.28.080(1)(3),
whereby the Carlsbad Municipal Water District Board, at its discretion, may reject all bids received; and
WHEREAS, staff will revise the bid provisions to include the Listing of Manufacturers form in the
checklist of required documents to be submitted with the bid; and
WHEREAS, staff recommend rejecting all bids and re-advertising the Project; and
WHEREAS, the City Planner has determined that rejecting all bids is exempt from environmental
review per California Environmental Quality Act, or CEQA, Guidelines Section 15270 (a); which states
that CEQA does not apply to projects which a public agency rejects or disapproves; and
WHEREAS, the City Planner has also determined the project is within the scope of the adopted
2019 Water Master Plan Program Environmental Impact Report and related addenda as stated in
CMWD Board of Director's Resolution No. 1689 adopted Nov. 15, 2022.
Exhibit 1
March 7, 2023 Item #6 Page 5 of 6
NOW, THEREFORE, BE IT RESOLVED by the Carlsbad Municipal Water District Board of the City
of Carlsbad, California, as follows:
l.That the above recitations are true and correct.
2.That the bids received on Jan. 18, 2023, for the El Fuerte and Maerkle Motorized Valves
Project are rejected in accordance with CMC Section 3.28.080 (1)(3).
3.That the Carlsbad Municipal Water District Board authorizes the Secretary of the Board
of Directors to return to the bidders any bid bonds received.
4.That the Carlsbad Municipal Water District Board authorizes the Secretary of the Board
of Directors to re-advertise bids for the El Fuerte and Maerkle Motorized Valves Project
for.
PASSED, APPROVED AND ADOPTED at a Special Meeting of the Board of Directors of the
Carlsbad Municipal Water District of the City of Carlsbad on the 7th day of March, 2023, by the
following vote, to wit:
AYES:
NAYS:
ABSTAIN:
ABSENT:
Blackburn, Bhat-Patel, Acosta, Burkholder, Luna.
None.
None.
None.
KEITH BLACKBURN, President
l / SHERRY FREISINGER, Secretary rv
(SEAL)
March 7, 2023 Item #6 Page 6 of 6