REPORT TO THE CITY COUNCIL FROM: BROCK D. BUCHE, PE, PLS, Director Department of Public Utilities BY: JESUS A. GONZALEZ, PE, Public Utilities Manager Department of Public Utilities - Utilities Planning & Engineering SAMUEL NADORES, PE, Professional Engineer Department of Public Utilities - Utilities Planning & Engineering SUBJECT ..Title Reject the sole bid received for the Northeast Surface Water Treatment Facility Sodium Hypochlorite Tank Replacement (Bid File 3881) (Council District 6) ..Body RECOMMENDATION Staff recommends that City Council reject the sole bid received for the Northeast Surface Water Treatment Facility (NESWTF) Sodium Hypochlorite Tank Replacement (Project). EXECUTIVE SUMMARY The Department of Public Utilities seeks to reject the bid proposal received for the Project. The proposal received in the amount of $353,897.06 was deemed "nonresponsive" due to taking exception to the specification terms and provisions. BACKGROUND The NESWTF has been in service since July of 2004. Over the last several years, both existing fiber reinforced plastic (FRP) sodium hypochlorite tanks at the NESWTF have shown degradation issues resulting in the increased frequency in repairs and maintenance. The sodium hypochlorite leaking from the aged tanks, due to its corrosive nature, caused damage to the supporting concrete pedestals including portions of the adjacent slab areas within the Chemical Storage Building. The scope of this Project is for the procurement only of new FRP tanks with long lead times. Repairs of the supporting concrete pedestals and installation of the tanks is to occur under a separate project. A Notice Inviting Bids was published in the Business Journal and posted in the City's Planet Bids website on July 11, 2022. Project specifications were distributed to 20 prospective bidders. One sealed bid was received and unsealed in a public opening on August 16, 2022. The sole bid submitted by DXP Enterprises, Inc., was 86% above the engineer's estimate and deemed "nonresponsive" for taking exception to the terms and conditions. For these reasons, staff recommends City Council reject the bid. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, the rejection of all bids does not qualify as a "project" and is therefore exempt from the CEQA requirements. LOCAL PREFERENCE Local preference is not applicable as this action is not the award of a contract. FISCAL IMPACT The rejection of all bids has no financial impact to the Water Division's Enterprise Fund or General Fund. Attachments: Attachment 1 - Bid Evaluation and Fiscal Impact Statement Attachment 2 - Vicinity Map