HomeMy WebLinkAbout2003-04-14 City Council (5)City of Palo Alto
Manager’s Rep r
TO:
FROM:
DATE:
SUBJECT:
HONORABLE CITY COUNCIL
CITY MANAGER
APRIL 14, 2003
REJECTION OF BIDS
PAGE MILL,
RECEIVED ON
ARASTRADERO AND
DEPARTMENT: UTILITIES
CMR:211:03
MARCH 18, 2003 FOR
LYTTON STATION
PRESSURE REELIEF VALVES REPLACEMENTS PROJECT
RECOMMENDATION
Staff recommends that Council reject all bids received on March 18,
Mill, Arastradero and Lytton Station PRV replacements.
2003 for the Page
BACKGROUND
Staff prepared a nd bid a contract for t he replacement of pressure relief v alves (PRV),
flow meters and other piping equipment, all of which have exceeded their useful lives, at
three of the pressure regulating stations serving the City’s water distribution system.
Replacement of the equipment will save the City operation and maintenance costs, as
well as increase system reliability and accuracy.
A notice inviting formal bids for the project was sent to eight builders exchanges and 5
contractors. The bidding period was 21 calendar days. A mandatory pre-bid conference
was held on March 4, 2003, with six prospective bidders attending. Two bids were
received. One contractor, who was present at the pre-bid meeting, did not submit a bid
because the project was outside their expertise.
Attachment A shows the engineer’s estimate as well as the two bids received. The
estimated ~’and total of bid items, including base bid and add additional bid items, was
$135,000.
CMR:211:03 Page 1 of 2
DISCUSSION
Staff recommends that the Council reject the bids for the following reasons:
The low bid significantly exceeded the $135,000 engineer’s estimate. Award of
the project was to be based on the wand total of bid items (base bid plus all
alternates). The high bid was $270,200 and the low bid was $208,475. The low
bid significantly exceeded the engineer’s estinaate of $135,000, by over 50%
The bid response of two bidders is too small to assure that the bids represent
current market prices. It is staff’s opinion that the bid prices are very high for the
project work.
Staff will revise the project specifications and rebid the project.
NATTACHME~ TS
A:Bid Summary
B:Project Location Map
PREPARED BY:
DEPARTMENT HEAD:
CITY MANAGER APPROVAL:
Jim Flanigan,
Roger Cwiak
Romel Antonio,
Scott Bradshaw
---
EMILY HARRISON
Assistant City Manager
CMR:211:03 Page 2 of 2
ATTACHMENT A
BII) SUMMARY
Item
1.Page Mill
2.Arastradero
3.L3~on
BASE BtI) TOTAL
Add Alternates:
A1 Paint Page Mill piping
A2 30" line stop
A3 24" line stop
A4 16" line stop
ADD ALTERNATE TOTAL
GRAND TOTAL
Engineers Estimate of
Cons~uction Cost
37,000
35,000
18,000
90,000
T~net(low
bidder)63,75ol
63,750I
40,0001
167,500I
2,000 2,000
20.000I 18,450
151000 13,650
8,OO0 6,875
45,0001
135,000t 208,475
DWNicholson
60,000
53,900
14,800
129,300
18,700
45,700
41,400
35,100
270,200
ATTACHMENT "B"
PROJECT LOCATION MAP
FOOTHILL