HomeMy WebLinkAbout2002-06-17 City Council (3)City of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: UTILITIES
DATE:
SUBJECT:
JUNE 17, 2002 CMR:283:02
REJECTION OF BIDS RECEIVED ON MAY 21, 2002 FOR WATER-
GAS-WASTEWATER SERVICE INSTALLATION PROJECT
RECOMMENDATION
Staff recommends that Council reject all bids received on May 21, 2002 for the Water-
Gas-Wastewater (WGW) Service Installation Project.
BACKGROUND
Staff developed and bid a multi-year contract to reinforce WGW.Operations’ installation
of new water, gas, and wastewater utility services. By supplementing WGW operations
crews with contractor crews, the installation time for new WGW services would be
reduced.
A notice inviting formal bids for the WGW service installation project was sent on April
29, 2002 to four pre-qualified contractors (gas service work requires pre-qualification of
bidders to perform work on the City’s gas distribution system in conformance with city
and federal regulations). The bidding period was 22 days. Bids were received from two
qualified contractors .on May 21, 2002, as listed on the attached bid summary
(Attachment A). Bids ranged from a high of $3,014,950 to a low of $2,042,973 for a
three-year contract. Contractors not responding indicated that they did not submit a bid
because they were too busy to take on more work at this time. The low bid is 34 percent
above the engineer’s estimate of $1,519,474. The engineer’s estimate includes the total
City costs of engineering, labor, equipment, materials, inspection, overhead, and benefits
for performing the work with City forces. Engineering, a.dministrative and inspection
time would also be required to perform the WGW Service Installations with a contractor.
The final City cost for implementing the WGW service installation project would be
greater than the 34 percent difference between the low bid and existing City costs. Staff
has reviewed the bids submitted and recommends that Council reject all bids.
CMR:283:02 Page 1 of 2
Staff will restructure the single WGW services installation bid package into two service
installation projects and bid the projects again. One bid package will be prepared for gas
service installations. The gas service installation contract requires the contractor to be
pre-qualified by the City and his/her staff to meet federal standards for gas system
construction. Staff will create a second bid package for water and wastewater collection
service installations. Bidding these projects separately may reduce the City’s overall cost
for installing WGW services.
POLICY IMPLICATIONS
The intention of this contract was to support the Utility Departments Strategic Plan,
Strategy #1, (operate distribution system in a cost effective .manner), Supporting
Objective C; develop multi-year supplement contracts with local contractors to
supplement staffs installation of new water, gas, and wastewater services. However,
awarding this contract to the lowest bidder would not be operating our distribution
system in a cost-effective manner.
ATTACHMENTS
A: Bid Summary
PREPARED BY:Roland Ekstrand, Senior Engineer
Roger Cwiak, WGW Engineering Manager
Scott Bradshaw, Assistant Director, Utilities
DEPARTMENT HEAD:
CITY MANAGER APPROVAL:
Director of Utilities
EMIL~kI~ARRI--S 0N
Assistant City Manager
CMR:283:02 Page 2 of 2
WGW Services nstallaUon Project
Engineers Est~mato
Itera quantity16O
2 25
3 ~5
4 500
¯ 5 200
6 5
7 . 80810
.9 810411-7123132
14 5
15"2
16 8
17 -2
18 ’2
19 50
20 50
21 .10
YEAR 2001-2002
total water
total sewer
YEAR 2002-2003
total water
total sewer
YEAR 2003-2004
descdplion
3,800.00
Dreeser-Arela
$56.00
$3,777.00
$ 8,940.00
$
$
$1~Z76.00 I $6~360.00$1~062.00 $3,784.00$ 7.277.00 $ 58~210.00
$$16~448.00$
$$.
% Increase]
18,033.24
14,924.70
2,443.16 ;
Engineer’s Estimate w/our cost
Dresser-Areia
extended pdce
$. 141,960100
$ 60~:775,00
$ 15~r766.00
$ 411733.00
’ $ "32,016.00
$61835.00
unit pdce extended pdce1" pagas evc314"dser $2~513.27 $150~796.33l"pegassvc 1-1/4"riser $2,513,27 $62,831.802" pe gas ~vc 2" dser $3,546.59 $17~732.941" eddt’l pipe $.18.04 $0,017.652" addt’l pipe $20.16 $4~031.42,relocate gas riser $744.76 $3,723.76 iaband gas service $530.45 $42,436.001" cu water sen/Ice I $3,557.20 $35,671.981-112"cuwaterservlce "$4~144.94 $33,159.492" cu water sen/Ice $ 4,643.56 $¯ 181574.244" pvc water service $ 4,960.93 $341866A86" pvc water service
8" pvc water service $7,686.22 $aband.l"-2" water svc $866.76 $aband.4"-8" water svc $1,258.23 $4" abs sewer lateral $5,353.30 $6" abe sewer lateral $6,668.52 $aband.sewerlateral $1,155.32 $Joumeyroan plurober $106.09 .$apprentice plumber $79.57 $permlta "$ 212.18 $
total 2003-04
total gag
total water
. total sewer
$5~563.36 $ "16,690.08
15,372.44
4,333.78
21516 45
42,826.41
13,337.83
2;310.64
5,304,50
3~078.38
21121.80
$521,5~4.20
$297,420.13
$161,084.93
$ 55,474;69
Total cost $1,519,474,05
total gas $866,524;54total water $469,316.07 :total sewer $170,364.23
West Valley
25,200;00
Dresser-Arela
unit pdce extended pdce$2~532,0(]$151~920.00
$2,601,00 $65~026,00$3,378.00 $16~690.00
$64.00 $32~000.00
$76.00 ! $15,200.00
$1~652,00 $5~410.00$1,306.00 $104~480.00
$2,462.00 $24~620.00$3,094.00 $.24~752.00$4;324,00 $17,296.00
$ 10~238.00 $71~652.00$ 14~885.00 $44~655,00
$ 17~129.00 $ 34~258.00$1,463,00 $ "7~315.00$2~166.00 $ "4~332.00$8,331.00 $66~648,00$ 9,416.00 $18,832.00
$. 3,347.00 $6~694.00
$112,00 $5,600.00
$109.00 $5~450.00
$ " 149,00 $1~490.00% tncreas
39~( $727,519.00
36°~$405~572;00=12%$ 228,880.00
58%$ 92,174,00
% Increase
;~1.% $ 2,042,973.00
31% $ 1,138,924.00
37% $ 642,695.00
52% $ 258,828.00
West Valley
unit price 308,000;00
$5r200.00$5~300,00
$9.50
2,500.00
6,280.00
7,750.00
$ . 1,550.00, .
$ 1,004,650,00
West Valley : ..’" ~....-
unit pdce "extended pdce :: .
$3~200.00 $312,000.00 -.
=5,300.00 $132,500.00$5,400.08 $. 27~000.00 ’:
$,10.00 $5~000.00 o’ .~.
$13.00 $2~600.00 ....~ ...
$1,100,00 $5,500.00$2,800.00 $224;000.00 :..
$4~700.00 $47~000.00$4,800.00 $,38~400.00 , ,.,$4,900.00 $,19,600.00 " :.,
$8,100.00 $56r700.00 " "
$8,600.00 $25,800.00 "
$9~200,00 $18~400,00$2,900.00 $14,500.00 ,h-’.. ~;~;, .
$ 5,000.00 $10,000.00 :-. ,."i.-~
$6~200.00 $49~000.00$ 6,300.00 $12,600.00 ".’"$5,000,00 $10~000.00$160.00 $8,000.00 . ,.
’$150,00 $7,500.00 "" .
$ 160.00 $1,000.00
% increase97~ $1,o26,3oo.oo ’}.."~.~.-
t46%$7331100,0043%$230,400.00
23%$72,200.00
98%$3,014,950.00 .. ".~
147%$2~144~400.0045%$ 678,500.00 ...."
25%$ 213.80~00 .:’ ..