1 of 2April 19, 2022, Item #6DATE: TO: FROM: CONTACT: SUBJECT: Summary: AG EN DA REPORT City of Poway April 19, 2022 Honorable Mayor and Members of the City Council Robert Manis, Director of Development Services /JA. Jeff Beers, Special Projects Engineer ~ (858) 668-4624 or [email protected] CITY COUNCIL Rejection of Received Bid for the Caustic Soda Tank Rehabilitation Project; Bid No. 22-005, and Direction to Staff to Re-Scope and Re-Advertise the Project A Notice Inviting Bids was duly advertised on February 10, 2022, for the Caustic Soda Tank Rehabilitation project. One bid was received and opened on March 3, 2022. The single bid exceeded the project budget. Per Municipal Code Section 3.28.070 (E), at its sole discretion, the City Council may reject all bids presented and re-advertise for bids in accordance with California Public Contract Code Section 20166. Recommended Action: It is recommended that the City Council reject the received bid and authorize staff to proceed with the re-scoping and re-advertisement of the project. Discussion: The scope of work included the rehabilitation of an existing caustic soda tank at the Lester J. Berglund Water Treatment Plant. This entailed the removal and replacement of all the connecting nozzles and removing and relining the interior of the tank. On March 3, 2022, the City received a single bid for $90,398.00 from AToM Engineering Construction, Inc. The bid exceeded the project budget by $40,398.00. Staff evaluated awarding the project as scoped to the contractor who submitted the bid, against the possibility of rescoping the project to replace the tank in its entirety. Both options would require a budget transfer or appropriation of additional funds prior to award of bid. Rehabilitating the tank would extend its lifespan by five to eight years whereas a new tank has a lifespan of 20 years. In comparing the two options, the tank would need to be rehabilitated two to three times in the same lifespan of a new tank depending upon how long the rehabilitation extended the life. While the cost of a new tank is estimated to be approximately $150,000.00, this is less than the cost of multiple rehabilitations.
2 of 2April 19, 2022, Item #6Environmental Review: This action is not subject to review under the California Environmental Quality Act (CEQA). Fiscal Impact: None. Public Notification: None. Attachments: None. Reviewed/ Approved By: Assistant City Manager Reviewed By: Alan Fenstermacher City Attorney Approved By: Ch ·s H tin -City Manager