REPORT TO THE CITY COUNCIL June 8, 2017 FROM: THOMAS C. ESQUEDA, Director Department of Public Utilities THROUGH: MICHAEL CARBAJAL, Planning Manager Department of Public Utilities - Utilities Planning & Engineering BY: GLENN A. KNAPP, PE, Professional Engineer Department of Public Utilities - Utilities Planning & Engineering SUBJECT ..Title Reject all bids to the City of Fresno's Southeast Surface Water Treatment Facility and Kings River Pipeline Security System Installation Contract. Bid File 3516 (All Districts) ..Body RECOMMENDATION Staff recommends that the City Council reject all bids for the City of Fresno's (City's) Southeast Surface Water Treatment Facility (SESWTF) and Kings River Pipeline (KRP) Security Installation Contract. EXECUTIVE SUMMARY The Department of Public Utilities, Utilities Planning & Engineering, is seeking to reject all bids received for the City's SESWTF and KRP Security System Installation Contract. There were three (3) bids submitted, all of which were non-responsive due to missing bid documents on the bidders check list required to be included with the bids, unauthorized signatures within the bid documents, or incomplete efforts related to Disadvantaged Business Enterprises "Good Faith Efforts" required for reimbursement by this federally funded project. BACKGROUND Consultant Pre-Qualification Process Announcements requesting pre-qualification for Consultant Services for installation of a security system for the SESWTF and KRP projects was posted to the City's PlanetBids Online site on June 30, 2016, and advertised in the Business Journal on July 6, 2016. The City received three (3) pre-qualification submittals. Pre-qualification submittals were opened on August 4, 2016. The submittals were evaluated by the Utilities Planning & Engineering selection committee utilizing the criteria outlined in the pre-qualification package. A total of three (3) consultants met the pre-qualification requirements. Consultant Bidding Process On February 28, 2017, completed project plans and specifications for this project were provided to pre-qualified bidders on the City's PlanetBids Online site. On March 23, 2017 a project pre-bid meeting was held at the SESWTF Construction Management Office at 6395 E. Floradora Avenue with three (3) pre-qualified firms attending. On April 25, 2017, three sealed bids were received and publically opened. The lowest and second lowest bidders were non-responsive due to missing documents on the bidder's checklist that were required to be included with the bid. The third bidder was non-responsive due to unauthorized signature of their bid. Both the lowest bidder and third bidder did not file the required Disadvantaged Business Enterprise "Good Faith Effort" (DBE/GFE) for this federally funded project. Additionally, the baseline Engineering Estimate for this project was $673,900 with a 15% contingency of $101,100, for a Total Construction Allocation of $775,000. Submitted bid proposals were between $981,100 and $1,411,888 which range 46 to 210 percent above the baseline Engineering Estimate. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act Guidelines Section 15378, the rejection of all bids does not qualify as a "project." LOCAL PREFERENCE Local preference was not implemented because Department of Public Utilities, Water Divsion is seeking to reject all bids received for the SESWTF and KRP Security System Installation Project. FISCAL IMPACT The rejection of all bids will result in no financial impact to the General Fund or Water Enterprise Fund. This project is identified in the five year capital improvement plan. Attachment: Evaluation of Bid Proposal