Item Coversheet

STAFF REPORT - CITY COUNCIL/SUCCESSOR AGENCY/PUBLIC FINANCE AUTHORITY

Subject:Rejection of Wastewater Treatment Plant Bids for Lining Pond Number 2 and Repair of 2 Splice Boxes
Meeting Date:August 15, 2019
From:Marissa Trejo, City Manager
Prepared by:Sean Brewer, (I) Public Works & Utilities Director


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-bid the project with a smaller scope at a later date to include influent box and yard box improvements and minor site road improvements.



II.    BACKGROUND:

In July, 2019, 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 major work consists of installing an HDPE liners on the embankment of aerated pond 2 and applying a protective coating two (2) hydraulic control structures at the WWTP located on 30500 Jayne Ave. All bids came in over budget and in order to keep the construction costs within the City’s budgeted amount staff is recommending the Council reject all bids.



III.   DISCUSSION:

City Staff received and opened two bids for this project on June 27, 2019, at 2:00 p.m. one bid received from Granite Construction Company in the amount of $643,700.00 was 6% higher than the Engineer’s Estimate of $607,000.00. The second bid received from Bush Engineering, Inc. in the amount of $722,912.92 was 19% higher than the Engineer’s Estimate.

 

Staff is recommending rejecting all bids so that the financial resources may be spent to get the clarifier and digestor back online since it has been down for maintenance for over a year. Staff is still requesting the City Council authorize staff to reduce the scope by removing the HDPE liners to pond two (2) and proceed with a limited scope to include coating the two (2) hydraulic control structures.



IV.   ALTERNATIVES:

There are no recommended alternatives suggested by City Staff.

V.    FISCAL IMPACT:

The cost for lining pond #2 was going to be approximately $400,000 and that savings will be go towards ongoing maintenance at the ponds and the repairs needed to get the clarifier and digestor back online. staff will then rebid the two (2) hydraulic control structures and complete that project separately. That estimated cost based on the two recent bids could be approximately $250,000. 
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