June 18, 2024, Item #7DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA REPORT Cityof.Poway June 18, 2024 Honorable Mayor and Members of the City Council Julie Procopio, Director of Development Servicq Miguel Solano, Assistant Engineer (858) 668-4653 or [email protected] fl\jt CITY COUNCIL Rejection of Received Bid for the Fiscal Year 2023-24 Water Valve Replacement Project, Bid No. 24-008, and Direction to Staff to Re-Scope and Re-Advertise the Project A Notice Inviting Bids was duly advertised on May 2, 2024, for the Fiscal Year {FY) 2023-24 Water Valve Replacement project. One bid was received and opened on May 16, 2024, and it 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 the City Council reject the received bid and authorize staff to proceed with the re-scoping and re-advertisement of the project. Discussion: This annual program replaces non-functioning water distribution valves identified by staff during routine field maintenance and inspection. For FY 2023-24 ten valves, located in various parts of the distribution system, have been identified by the Public Works Utilities Division to have aged beyond the end of their reliable service life. On May 16, 2024, the City received a single bid for $544,774.00 from Kay Construction Company, Inc. The engineer's estimate for the advertised project is $181,000.00, which was based on historical cost for similar projects. The single bid received is $363,774.00, or 200 percent, over the engineer's estimate. Since the City reserves the right to reject the bid, and there is a significant difference between the engineer's estimate for the low bid that was received, staff recommends City Council reject all bids. The project scope will be adjusted, and the work will be rebid in July. Staff reached out to the list of potential bidders and learned the multiple water valve locations coupled with the limited construction window played a significant role in the receipt of only one bid. The new 1 of2
June 18, 2024, Item #7scope will reduce the number of water valve locations in order to reduce the number of times the contractor will need to re-mobilize and will extend the construction window providing additional time for the work to be completed. Environmental Review: This action is not a "project" as defined under Section 15378(b)(S) of the California Environmental Quality Act (CEQA) State Guidelines; therefore, no environmental review is required. Fiscal Impact: None. Public Notification: None. Attachments: None. Reviewed/Approved By: ( ,;;.j Jt~,l,~1 L.--~·-··-·-·····-·-;, Wendy Ka)erman Assistant City Manager 2 of2 Reviewed By: Alan Fenstermacher City Attorney Approved By: Chris Hazeltine City Manager