REPORT TO THE CITY COUNCIL
June 11, 2015
FROM: THOMAS C. ESQUEDA, Director
Department of Public Utilities
BY: MICHAEL CARBAJAL, Division Manager
Department of Public Utilities - Water Division
MARTIN WENDELS, Project Manager
Department of Public Utilities - Water Division
SUBJECT
Title
Reject all bids for the contract to Rehabilitate 16-Inch Diameter Well at Pump Station 206 - Bid File 3398 (Citywide)
Body
RECOMMENDATION
Staff recommends City Council reject all bids received for the contract to rehabilitate a 16-inch diameter well at Pump Station 206 (PS 206).
EXECUTIVE SUMMARY
The Department of Public Utilities - Water Division, solicited bids to establish a contract to rehabilitate a 16-inch diameter well at PS 206. One bid was received. The bid that was received was 129% above the Engineer's Estimate. At this time it is not feasible to award this contract and stay within an acceptable margin of the budget. Staff is re-evaluating well rehab projects to ascertain a more cost-effective approach. Purchasing is prepared to rebid upon City Council's consideration of the staff recommendation to reject all bids received to the rehabilitate the 16-inch diameter well at PS 206.
BACKGROUND
PS 206 is a 16-inch diameter, Ful-Flo cased, gravel packed well and was originally drilled in 1974 with an estimate to produce 800 gpm at normal production levels. Well video shows that the gravel pack is no longer present and has become a sand producer. PS 206 has been taken off-line until rehabilitation can take place.
A Notice Inviting Bids was published on April 1, 2015, per the City of Fresno Charter Section 1208. Fourteen Building Exchanges were faxed Notice Inviting Bids, and two specifications were distributed to prospective bidders. The bid opening was on April 21, 2015, and one bid was received for $294,574. Purchasing is prepared to immediately rebid upon Council's consideration of the staff recommendation to reject all bids received for the contract to rehabilitate 16-inch diameter well at PS 206.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act Guidelines Section 15378 the rejection of all bids does not qualify as a "project" as defined by the California Environmental Quality Act requirements.
LOCAL PREFERENCE
Local preference was not implemented because rejection of all bids does not include an award of a construction contract.
FISCAL IMPACT
As the recommendation is for rejection of all bids, there is no fiscal impact.
Attachment: Bid Evaluation