I. RECOMMENDATION:
It is recommended that the Coalinga City Council reject all bids for the Wastewater Treatment Plant (WWTP) Improvements Project and redirect staff to reduce project scope, revise plans and specifications, and to re-advertise the project for bids.
II. BACKGROUND:
In July, 2018, the Coalinga City Council directed staff to prepare engineering plans and specifications and authorized a call for bids for the WWTP Improvements Project. The project included Rehabilitation/Replacement of 5 hydraulic control structures and piping, furnish and install 4 slide gates and Restoration of embankments at wastewater ponds No. 1 and No. 2.
All bids came in over budget; in order to keep the construction costs within the City’s budgeted amount staff is recommending the Council reject all bids. Should the Council approve the recommendation to rebid; staff will reduce the scope of work and revise the plans and specifications in an effort to obtain bids in conformance with the budget parameters.
III. DISCUSSION:
City Staff received and opened two bids for this project on November 8, 2018, at 2:00 p.m. one bid received from Bush Engineering, Inc. in the amount of $1,397,223.10 was 54% higher than the Engineer’s Estimate of $906,000.00. The second bid received from Granite Construction Company in the amount of $1,734,700.00 was 92% higher than the Engineer’s Estimate.
Staff recommends Council reject all bids and direct staff to reduce the scope of work and revise the plans and specifications in an effort to obtain bids in conformance with the budget parameters.
Schedule:
The following is the revised project schedule for WWTP Improvement Project:
First Day of Advertisement (Re-Bid)
Bid Opening 02/12/2019
Contract Award 02/21/2019
Begin Construction 03/04/2019
End Construction 08/26/2019
IV. ALTERNATIVES:
The alternative to this council action is to accept the low bid and award the project over budget – staff does not recommend. Staff believes that by reducing the scope of work and re-advertising the project will result in lower bids.
V. FISCAL IMPACT:
This project will be funded from the Sewer Fund Account. The General Fund is not affected by this recommendation.
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