DATE: NOVEMBER 19, 2024
DEPARTMENT: PUBLIC WORKS DEPARTMENT
FROM: DAVID JACOBS, P.E., L.S., PUBLIC WORKS DIRECTOR
TITLE: REJECTION OF BIDS FOR THE INDUSTRIAL WASTEWATER TREATMENT FACILITY INFLUENT PUMP STATION AND ELECTRICAL IMPROVEMENTS, CIP 9317 RECOMMENDED MOTION:
A motion to approve a resolution rejecting all bids for the Industrial Wastewater Treatment Facility Influent Pump Station and Electrical Improvements, CIP 9317.
EXECUTIVE SUMMARY:
On October 15, 2024, the City received two bids for the Industrial Wastewater Treatment Facility Influent Pump Station and Electrical Improvements, CIP 9317. The two bidders are Anderson Pacific Engineering Construction Inc. and Mountain Cascade, Inc., with a total Base Bid No. 2 of $10,075,740 and $9,030,000 respectively. The engineer’s estimate for Base Bid No. 2 is $6,165,651, putting the proposals received at 63% and 46% higher than anticipated and exceeding available funding. Staff recommends rejecting all bids for the Industrial Wastewater Treatment Facility Influent Pump Station and Electrical Improvements, CIP 9317 due to insufficient funding.
BACKGROUND:
In 2020, the City applied for a storm water implementation grant through Round 2 of the State Water Resources Control Board (State Water Board) Proposition 1 Storm Water Grant Program (SWGP) for the Salinas Project to Enhance Regional Stormwater Supply (SPERSS). The goals of the SPERSS project were to enhance the City’s stormwater capture, storage, and conveyance infrastructure at the Treatment Plant 1 and Industrial Wastewater Treatment Facility (IWTF) sites. Stormwater Grant Agreement No. D2112160 was executed on October 31, 2022, with an award amount of $8,799,154. Council authorized the City Manager to execute the agreement on behalf of the City on March 30, 2021 (Resolution 22073). Council also approved a professional service agreement with E2 Consulting Engineers for design services and accepted grant funds on June 14, 2022 (Resolution 22394).
On October 15, 2024, the City received two bids for the for the Industrial Wastewater Treatment Facility Influent Pump Station and Electrical Improvements, CIP 9317. Bids were opened through Zoom, with the following results (see attached Bid Tabulation Sheet for details):
Rank
Contractor
Total Base Bid 1
Total Base Bid 2
1 Mountain Cascade, Inc.
$10,781,000
$9,030,000
2 Anderson Pacific Engineering Construction Inc.
$11,606,240
$10,075,740
Based on provisions of the Project Specifications, “Depending on available funding at the time of award, the BASIS OF AWARD shall be the lowest total of the Schedule 1 Base Bid Grand Total (or Schedule 2 Base Bid Grand Total, as noted on the Proposal. The City further reserves the right to award or reject the Base Bids or any item(s) within, depending on available funding.” The lowest bidder is Mountain Cascade, Inc. with a total Base Bid No. 1 of $10,781,000, and Base Bid No. 2 of $9,030,000. The engineer’s estimate is $6,165,651 for Base Bid No. 2, putting the proposals received higher than anticipated.
The “Notice to Bidders” informed the bidders that the City reserves the right to reject any and all Proposals and waive any irregularities to any Proposals received.
Staff is working on a reduced scope of work to fit within the grant allocation. The reduced scope of work will be packaged with the second phase of the grant work and bid in December.
Staff recommends rejecting all bids for or the Industrial Wastewater Treatment Facility Influent Pump Station and Electrical Improvements, CIP 9317.
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378). Section 15300.2 as all exceptions do not relate to the project scope of work for this project.
STRATEGIC PLAN INITIATIVE:
This project, when awarded, will addresses the current City Council’s Goals of “Economic Development”.
DEPARTMENTAL COORDINATION:
Coordination between Public Works and Maintenance Department for identification of scope of work of the project.
FISCAL AND SUSTAINABILITY IMPACT:
This action does not have a fiscal impact.
ATTACHMENTS:
Resolution
Bid Tabulation
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