DATE:
June 7, 2022
TO:
Mayor and Council Members
Chair and Board Members, Hesperia Water District
FROM:
Nils Bentsen, City Manager
BY:
Rachel Molina, Assistant City Manager
David Burkett, Project Construction Manager
SUBJECT:
Reject all Bids for I-15 Corridor Utility Improvements – Phase II
RECOMMENDED ACTION
It is recommended that the City Council and Board of Directors of the Hesperia Water District reject all bids submitted for the I-15 Corridor Utility Improvements – Phase II project.
BACKGROUND
In 2014, the City annexed the I-15 freeway corridor south from Highway 395 to the summit at Oak Hills. As part of this annexation, the City is required to construct the water and wastewater infrastructure to serve the corridor. The improvements under Phase I included construction of new water and wastewater pipe lines in Mariposa Road and Caliente Road from approximately the I-15 & 395 junction to the Ranchero Road interchange. Phase II of the project includes construction of a new wastewater lift station, proposed near the Union Pacific Railroad tracks off Caliente Road, and construction of a new water pump station. The annexation agreement included a requirement that all improvements were to be completed in three years; however, budget constraints have prevented this work from proceeding on the timeline originally proposed.
ISSUES/ANALYSIS
This project was advertised for bids beginning on March 29, 2022. More than 4,000 contractors were notified about the project while over 160 contractors accessed the bid documents through Public Purchase, the City’s online bidding platform. Bids were received, opened, and publicly read on May 5, 2022.
The City received the following two bids:
R.I.C. Construction Company, Inc.
Hesperia, CA
$9,803,185
Christensen Bros. Gen. Engineering
Apple Valley, CA
11,731,885
After review of the submitted bids, staff has determined that the total costs for the project have substantially exceeded the original estimates. Therefore, staff is recommending that the City Council and Board of Directors reject the submitted bids. Subsequently, staff will review the scope of work, apply value engineering, and determine if site improvements and mechanical equipment in the pump station and lift station can be reduced to the minimum requirements needed to provide sewer and water service to the I-15 corridor and re-advertise the project for bids.
With this thorough engineering review it is expected that new bids for the project will be considerably lower and construction of the project may proceed.
FISCAL IMPACT
There is no fiscal impact upon rejection of all submitted bids. On June 15, 2021 the City Council adopted the Fiscal Year 2021-22 Capital Improvement Program (CIP) Budget that included the I-15 Corridor Utility Improvements – Phase II project under Construction Order No’s. 8077 (water) and 9021 (sewer). The current adopted CIP budget for this project is $4,600,000.
ALTERNATIVE(S)
Provide alternative direction to staff.
ATTACHMENT(S)
None
City of Hesperia STAFF REPORT City of Hesperia STAFF REPORT City of Hesperia
STAFF REPORT
City of Hesperia
STAFF REPORT
Staff Report to the Mayor and Council Members
Chair and Board Members, Hesperia Water District
Reject all Bids for I-15 Corridor Utility Improvements – Phase II June 7, 2022