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CITY COUNCIL AGENDA ITEM NO. 8

Meeting Date: February 13, 2007

Subject/Title: Adopt a Resolution to reject the bids received for Well #15, CIP Project No. 562-56310, and direct staff to readvertise, rebid the project and return to City Council for award of the contract.

Prepared by: Public Works: P. Eldredge

Submitted by: Public Works: B. Grewal

RECOMMENDATION
Adopt a Resolution to reject the bids received for Well #15, CIP Project No. 562-56310, and direct staff to readvertise, rebid the project and return to City Council for award of the contract.

PREVIOUS ACTION
On August 23, 2005, by Resolution No. 2005-202, City Council authorized the City Manager to execute a Professional Services Agreement with Kimley-Horn and Associates, Inc. to provide design services in the amount of $118,198.05, plus contingency for the site design of Well #15, CIP Project No. 562-56310.

On May 23, 2006, by Resolution No. 2006-115, City Council adopted the City’s 2006/07 – 2010/11 Capital Improvement Program (CIP), which included Well #15, CIP Project No. 562-56310.

BACKGROUND
Well #15 is located across from the City of Brentwood’s Corporation Yard on Elkins Way. The well itself has been drilled and established, along with the pump, motor and associated piping. This well site improvement project includes a new control system, chemical systems, permanent power and permanent fencing. The City contracted with Kimley-Horn and Associates for the design services and preparation of the contract documents.

Staff advertised the Well #15 project on December 18, 2006, and held the bid opening on January 23, 2007, at 2:00 p.m. A total of five bids were received and all bids exceeded the project budget for construction. Specifically, there were three bid items that far exceeded the Engineer’s estimate (sewerline, prefabricated fiberglass buildings and programming), which precluded staff from recommending the award of this contract. Staff recommends all bids be rejected and requests authorization to readvertise the project. Prior to readvertising the project, staff will review the existing scope of the project to determine if it can be modified to reduce the overall construction cost, such as removing the three items above from the scope of work.

The five bids were:

Albay Construction, Inc. $776,000
Manito Construction $746,900
McGuire and Hester $733,720
TNT Industrial Contractors, Inc. $731,550
NCCI, Inc. $692,613

FISCAL IMPACT
The 2006/07 – 2010/11 CIP Budget contains approximately $600,000 in the construction phase of the Well #15 project. Should it be determined that the scope of work cannot be reduced or if there is little value obtained from any potential reductions, staff will amend the project budget accordingly and bring it to City Council for consideration. Funds are available in the project budget to cover the minimal costs of readvertising and reproducing additional contract documents and plan sets for sale.

Attachments:
Resolution

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD TO REJECT THE BIDS RECEIVED FOR WELL #15, CIP PROJECT NO. 562-56310, AND DIRECT STAFF TO READVERTISE, REBID THE PROJECT AND RETURN TO CITY COUNCIL FOR AWARD OF THE CONTRACT.

WHEREAS, on August 23, 2005, by Resolution No. 2005-202, City Council authorized the City Manager to execute a Professional Services Agreement with Kimley-Horn and Associates, Inc. to provide design services for the site design of Well #15, CIP Project No. 562-56310; and

WHEREAS, the project was advertised beginning December 18, 2006, and bids were opened on January 23, 2007; and

WHEREAS, a total of five bids were received and all exceeded the project budget for construction.

NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Brentwood does hereby reject the bids received for Well #15, CIP Project No. 562-56310, and directs staff to readvertise, rebid the project and return to City Council for award of the contract.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the 13th day of February 2007 by the following vote:
 

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