HomeMy WebLinkAbout2004-06-28 City Council (3)C ty
City of Palo Alto
Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: PUBLIC WORKS
DATE:JUNE 28, 2004 CMR:329:04
SUBJECT:REJECT THE BIDS FOR THE 2004 STREET MAINTENANCE
PHASE 2 CAPITAL IMPROVEMENT PROGRAM PROJECT PE-
86070
RECOMMENDATION
Staff recommends that Council reject al! bids received for construction of the 2004 Street
Maintenance Phase 2 Capital Improvement Project PE 86070, (Attachment A).
BACKGROUND
Annually, Public Works Engineering manages the resurfacing and reconstruction of
various city streets. The candidate streets are surveyed and rated biannually by a
computerized pavement management system. The annual project budget ranges from
$1.8M to $2M and averages approximately eight lane miles of resurfacing, street
reconstruction and concrete pavement repair and approximately eight lane miles of slurry
sealing. Phase 1 of the 2004project was awarded by the Council on April 19, 2004
(CMR:226:04) and will provide Portland cement concrete street repair work only.
DISCUSSION
The annual street maintenance program is funded by revenue fi’om non-local sources
including State gas tax and the Traffic Congestion Relief Fund. Use of these non-local
funding sources results in a requirement for the contractor and their subcontractors to pay
prevailing wage rates and provide documentation in the form of certified payrolls. State
law specifies that the City must include any prevailing wage requirement in the notice to
bidders. Due to a clerical error the prevailing wage requirement was omitted from the
project bid documents. In order to comply with State law notice requirements as well as
to ensure a "level playing field" for bidders, the Council must reject all bids received on
the Street Maintenance Program Phase 2 Project.
Staff will begin the process to readverfise this project with the prevailing wage rate
wo"~ "’~s~,,.~;~" m" the bid~v~..o~.a-o-m"’~o Staff p!ans *- ............. ~",-, to ~,,,,,oa~~ a ~~..,,~,~,~o~""~"a~6"" +.~
award the Phase 2 street maintenance contract in late July. This will pose a month delay
in the start of construction. Staff discussed this situation with the apparent low bidder,
Granite Construction, and it informed staff it plans to submit a bid for the project.
CMR:329:04 Page 1 of 2
Bid Process
A notice inviting formal bids for the 2004 Street Maintenance Phase 2 project was issued
on May 6, 2004, and sent to 12 builders’ exchanges and 31 contractors. The bidding
period was 27 days and bids were received from 3 qualified contractors on June 1, 2004.
See Attachment A for
add/alternates #1, #2,
$2,172,847.
a summary of all bids received on the project. Bids (including
#3, #4) ranged from a low of $2,076,535 to a high bid of
Bid Name/Number
Proposed Length of Project
Number of Bids Mailed to Contractors
Summar7 of Bid Process
2004 Street Maintenance/PE 86070
130 Calendar days
31
Number of Bids Mailed to Builder’s Exchanges
Total Days to Respond to Bid
12
27
Pre-Bid Meeting?No
Number of Company Attendees at Pre-Bid N/A
Meeting
Number of Bids Received:3
Bid Price Range i Low bid of $2,076,535 to $2,172,847
RESOURCE IMPACT
This recommendation has no fiscal impact.
POLICY IMPLICATIONS
This recommendation does not represent any change to existing City policies.
ATTACHMENTS
Attachment A: Bid Summary
PREPARED BY:
DEPARTMENT HEAD:
CITY MANAGER APPROVAL:
AMES
Senior Engineer
GLENN S. ROBERTS
Director of Public Works
EMIL UHARiNgON
Assistant City Manager
CMR:329:04 Page 2 of 2
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