Title
Staff Report for a Resolution Rejecting All Bids for the Sanitary Sewer Line Replacement/Repair 2012-13 Project, Project No. 2013.0120
Staffreport
SUMMARY AND RECOMMENDATIONS
This contract provides for the repair or replacement of sanitary sewer facilities at various locations throughout San Leandro.
Staff recommends that the City Council approve a resolution rejecting all bids on the subject project.
BACKGROUND
City staff routinely inspects the condition of sewer mains and manholes. Based on those inspections, locations that have deteriorated to the point where repairs may be needed in the near future or those that require a significant amount of maintenance by Public Works were included in the scope of work for the subject project.
This project will replace defective sewer mains, reconstruct deteriorated manholes and/or manhole channels, replace deteriorated manhole frames and covers, reroute sewer mains to improve flow velocity as well as miscellaneous work items as identified on the project plans. These improvements will increase system reliability, reduce the frequency of required maintenance and improve system access to increase efficiency of maintenance operations. Existing improvements disturbed by construction will be restored at the end of this project.
Composite non-metallic manhole frames and covers will be utilized on a trial basis at several locations where sewer gases have corroded the existing metal frames and covers. Composite manhole frames and covers have not been previously used on a City project, but they are lighter than metal covers, are unattractive to metal thieves, and are corrosion resistant. The composite covers will have locks operable only with special tools to deter unauthorized access.
Analysis
This project is subject to the provisions of San Leandro Municipal Code Section 1-6-225 regarding Local Business Preference during bidding and local business participation.
Two bids, $853,395.00 and $1,048,566.00, were received on June 25, 2014. Both bids were significantly over the engineer's estimate for this work of $713,881.00.
The low bidder does not qualify as a San Leandro local business. Additionally the bidder did not meet the subcontracting or Good Faith Effort requirements specified in the ordinance, and therefore is found to be non-responsive. The second bidder, while qualifying as a San Leandro business, submitted a proposal that significantly exceeds the project budget.
After the bid opening, staff spoke with contractors on the plan holders list that elected not to submit bids for the project. Some contractors expressed difficulty in finding San Leandro subcontractors and suppliers for sewer-related construction. They also had difficulty meeting the Good Faith Effort requirements due to lack of time or unfamiliarity with this relatively new ordinance.
Staff is currently reviewing options regarding rebidding the project in the near future.
Applicable General Plan Policies
Policy 52.04: Maintain efficient, environmentally sound, and cost-effective wastewater collection and treatment services in San Leandro.
Environmental Review
This project is categorically exempt from CEQA per Section 15302 - Replacement or Reconstruction, Class 2. The Notice of Exemption was filed with the Alameda County Recorder's Office on July 22, 2013.
Fiscal Impacts
The total project cost including design, contingency and construction management is estimated to be $905,934.82.
Budget Authority
1) $500,000.00 - Water Pollution Control Enterprise Funds, Sanitary Sewer Line Replacement/Repair 2013, Account No. 593-52-253, allocated in FY 2012-13
2) $500,000.00 - Water Pollution Control Enterprise Funds, Sanitary Sewer Line Replacement/Repair 2014, Account No. 593-52-256, allocated in FY 2013-14
ATTACHMENT
ยท Bid Summary - Sanitary Sewer Line Replacement/Repair 2012-13
PREPARED BY: Kyle K. Lei, Associate Engineer, Engineering and Transportation Department