REPORT TO THE CITY COUNCIL FROM: BROCK D. BUCHE, PE, PLS, Interim Director Department of Public Utilities BY: JESUS A. GONZALEZ, PE, Public Utilities Manager Department of Public Utilities - Utilities Planning & Engineering SARAH AGUILA, Supervising Engineering Technician Department of Public Utilities - Utilities Planning & Engineering SUBJECT ..Title Reject the sole bid received for sewer main Access Structure Rehabilitation in Jensen Avenue from Fruit Avenue to Cherry Avenue (Bid File 3804) (Council District 3). ..Body RECOMMENDATIONS Staff recommends that City Council reject the sole bid proposal received for sewer main Access Structure Rehabilitation in Jensen Avenue from Fruit Avenue to Cherry Avenue (Project) and direct staff to rebid the project. EXECUTIVE SUMMARY The Department of Public Utilities (Department) contracts for the rehabilitation of sewer main access structures to extend the useful life of the facility. These structures become deteriorated by hydrogen sulfide gasses which are associated with this type of conveyance system. The single bid proposal received was 52.8% higher than the engineer's estimate. Staff therefore recommends rejection of the single bid received for the Project. Approval of the rejection of this sole bid on March 10, 2022 is crucial to the ability to re-advertise the project and have it awarded by the end of the current fiscal year. BACKGROUND The collection system maintenance workgroup is responsible for maintaining the City's sewer infrastructure consisting of over 23,600 sewer main access structures. The purpose of these structures is to allow access during inspection and cleaning of the sanitary sewers. Rehabilitation of these access structures will extend their service lives by repairing damage and structural deficiencies caused by corrosion from hydrogen sulfide gases. The Project consists of rehabilitating eighteen access structures and the construction of a new one on Jensen Avenue between Fruit Avenue and Cherry Avenue. On Friday, October 29, 2021, the City advertised the Project on PlanetBids. Eleven Building Exchanges received Notice Inviting Bids and fourteen sets of specifications were distributed to prospective bidders. One sealed bid proposal was received and publicly opened on November 30, 2021. The specifications stipulated that submitted bid proposals would expire 64-days after bid opening. The bid proposal expiration has been extended to April 2, 2022. The lone bid proposal received in the amount of $863,442.00, was submitted by Floyd Johnston Construction Co., Inc. of Clovis. The bid proposal amount is 52.8% above the engineer's estimate of $565,000. For this reason, staff recommends City Council reject the single bid. Staff will subsequently rebid the rehabilitation project after re-evaluating the design plans and specifications and current market costs for materials, for the purpose of obtaining additional contractor participation. ENVIRONMENTAL FINDINGS By definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, the rejection of all bids is not a "project." LOCAL PREFERENCE Local preference is not applicable as this action is not an award of a contract. FISCAL IMPACT The rejection of all bids has no financial impact to the General Fund or the Wastewater Management Division Enterprise Fund. Attachments: Attachment 1 - Bid Evaluation and Fiscal Impact Statement Attachment 2 - Vicinity Map