Title
Adopt a Resolution Rejecting All Bids for the Sanitary Sewer Point Repairs 2022 Project, Project No. 2022.0120
Staffreport
COUNCIL PRIORITY
• Public Safety
• Infrastructure
SUMMARY
This project provides for construction of sanitary sewer line repairs at various locations within the San Leandro sewer service area. Four bids were received for construction. None of the bidders have an office in San Leandro that would qualify them as a local business per the Local Inclusion Policy Ordinance. None of the bidders met the Local Business Participation Goal by subcontracting with San Leandro businesses for 25% of the contract value, and none of the bidders provided documentation that demonstrated completion of the required good faith efforts to meet the local business participation goal.
RECOMMENDATIONS
Staff recommends rejecting all bids from the February 28, 2023 bid opening for the subject project, and rebidding the project at a later date.
BACKGROUND
City staff routinely inspects the condition of the sanitary sewer main lines and manholes in the City’s service area. The sanitary sewer point repair project is based upon inspections that have identified locations of defects or deteriorated facilities to the point that repairs are needed or may be needed soon. Locations that require a significant amount of repetitive maintenance by Public Works, if within the proximity of a repair project, are also included in the scope of work.
This project will repair and replace defective sanitary sewer main lines, rehabilitate, upgrade, and reconstruct deteriorated manholes, and replace undersized access structures with full-sized standard manholes. These improvements, when completed, will increase the system’s reliability, reduce the frequency of required maintenance, improve the efficiency of maintenance operations, and reduce the risk of sewage overflows. Existing improvements disturbed by the construction will be restored at the end of the Project.
A total of four bids were received on February 28, 2023, ranging between $1,084,275 and $2,089,497. The pre-bid engineer’s estimate for construction was $1,036,063. All the bids were deemed non-responsive because the bids did not comply with the City’s Local Business Preference policy. None of the bids met the local business participation goal by subcontracting with San Leandro businesses for 25% of the contract value, and none included documentation that demonstrated completion of the required good faith efforts to meet the local business participation goal.
This project is subject to the provisions of the Community Workforce Agreement (CWA). Each bidder was advised of the agreement in writing and verbally at the mandatory pre- bid meetings. All the bidders signed the Community Workforce Agreement commitment form.
Analysis
None of the bids complied with the Local Business Preference policy. Staff recommends rejecting all bids. Post-bid discussions with the bidders attributed their inability to comply with the above-mentioned policies to lack of effort by the bidders. Staff anticipates that rebidding this project will result in more effort to involve San Leandro businesses and residents. Staff intends to aggressively encourage the bidders to use all means available to include San Leandro businesses in this project.
Rejection of the bids will delay the sewer repair work by approximately ten weeks. The project includes sewer repair work on nine streets that are scheduled for street sealing this summer, delay in completion of the sewer repairs is likely to result in delay of the street seal work on those streets until summer 2024.
Alternatively, the City could waive the local business preference policy thereby making all the bids responsive and award the project to the lowest responsive bidder.
Current Agency Policies
• Maintain and enhance San Leandro’s infrastructure.
Applicable General Plan Policies
• Policy CSF 6.4: Wastewater Collection and Treatment. Maintain efficient, environmentally sound, and cost-effective wastewater collection and treatment services in San Leandro.
Environmental Review
This project is categorically exempt from the California Environmental Quality Act (CEQA) per Section 15301 Class 1(b) of the CEQA guidelines.
Summary of Public Outreach Efforts
The Notice to Bidders was published in the Daily Review, the South County Post, and Visión Hispana. Staff also notified twenty-three builders’ exchanges and construction data firms, as well as a list of contractors that asked to be notified of bidding opportunities via email. The project is described on the Engineering and Transportation Department website.
Two mandatory pre-bid meetings were held on February 15, 2023, and February 16, 2023. The intent of these meetings was to inform bidders of the project details, including the City’s Local Inclusion Ordinance and address any questions bidders may have.
New notifications and mandatory pre-bid meetings will be held for the project during the rebid.
Financial Impacts
The cost of this Water Pollution Control Plant Enterprise fund project is detailed below. The budget authority section has details on funding types, accounts, and authorizations. CIP accounts are carried forward for five years or until the work is complete, whichever occurs first.
Design and Bid: $100,000
Construction Contract and Construction Contingency (Estimate): $1,301,130
Construction Management and Inspection: $91,396
Total $1,492,526
Budget Authority
Sufficient funds are included in the Fiscal Year 2022-2023 Enterprise Fund budget for the project:
Account No. Source Fiscal Yr. Amount
593-52-277* WPCP Enterprise Fund FY2020-2021 $308,000
593-52-530 WPCP Enterprise Fund FY2021-2022 $750,000
593-52-531 WPCP Enterprise Fund FY2023-2023 $750,000
Total Proposed Project Funding $1,808,000
*Amount listed represents funds available for this contract and is less than the amount appropriated.
ATTACHMENTS
• Attachment A: Resolution
• Attachment B: Bid Summary
PREPARED BY: Robert Magno, Assistant Engineer, Engineering and Transportation Department