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HomeMy WebLinkAbout08 - Water Main Master Plan Replacement - Reject All Bids for Contract No. 4920 (CAP14-0031)CTY OF F NEWPORT BEACH City Council Staff Report April 28, 2015 Agenda Item No. 8 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: David A. Webb, Public Works Director- (949) 644 -3330, dawebb @newportbeachca.gov PREPARED BY: Alfred Castanon, Associate Civil Engineer PHONE: (949) 644 -3314 TITLE: Water Main Master Plan Replacement — Reject All Bids for Contract No. 4920 (CAP14 -0031) ABSTRACT: Staff received ten construction bids for the Water Main Master Plan Replacement project, with all but one bid being significantly higher than the project cost estimate. Staff believes the best course of action is to reject all bids, re -scope and re- advertise the project. RECOMMENDATION: a) Reject all bids received for Contract No. 4920; and b) Direct staff to review the scope of work and re- advertise for bids. FUNDING REQUIREMENTS: No fiscal impact. DISCUSSION: At 11:00 a.m. on March 25, 2015, the City Clerk opened and read the following bids for this project: BIDDER TOTAL BID AMOUNT Low Minako American Corp. dba Minco Construction $ 1,180,170.00 2 MNR Construction, Inc. $ 1,440,450.00 3 T.E. Roberts Inc. $ 1,521,850.00 4 GCI Construction, Inc. $ 1,539,105.00 5 Paulus Engineering, Inc. $ 1,544,255.00 a 6 JA Salazar Construction & Supply Corp. 7 Beador Construction Company 8 J. De Sigio Construction, Inc. 9 Kana Pipeline, Inc. 10 Mike Bubalo Construction Co.. Inc. $ 1 ,731,700.00 $ 1,944,750.00 $ 2,124,750.00 $ 2,220,000.00 $ 2,628,000.00 While reviewing the bid for the apparent low bidder, Minako American Corporation, staff discovered a mistake for the slip - lining bid item. Staff discussed this with the contractor and they acknowledged underestimating the cost for the line item. Since then, the contractor has submitted a letter requesting the city to rescind their bid. Bids two through ten were substantially higher than the $1,200,000 engineer's estimate. The engineer's estimate was developed using similar work and final cost information from the last water main replacement project in 2010, and adjusted for market inflation. With City Council's approval, staff intends to re -scope the bid package and possibly minimize slurry seal and concrete pavement replacement requirements. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this project exempt from the California Environmental Quality Act ( "CEQA ") pursuant to Section 15302 (replacement of existing facilities involving negligible expansion of capacity) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Description Attachment A - Location Mai) UN �� O W VA E 9 CF 2f S FOURTH AVENUE THIRD AVENUE LIN SECOND AVENUE i i i ATTACHMENT A EPEE H Eu Hm do IH I ;��� I==� EEi E-1 EEII EE1 F=l EEJ CORONA DEL MAR COMMUNITY WATER MAIN MASTER PLAN REPLACEMENT LOCATION MAP J - - - - - - CITY OF NEWPORT BEACH PUBLIC WORKS DEPARTMENT Is a, I COOY�imtlf"keolkR CHANNELPLACE PARK RIVO ALTO RIVER AVE Q Q Q ZIP° ; Q BALBOA BLVD r lfj WEST NEWPORT BEACH COMMUNITY WATER MAIN MASTER PLAN REPLACEMENT LOCATION MAP CITY OF NEWPORT BEACH PUBLIC WORKS DEPARTMENT C -4920 1 4/28/15 ai