REPORT TO THE CITY COUNCIL December 15, 2016 FROM: SCOTT L. MOZIER, PE, Director Public Works Department BY: ROBERT N. ANDERSEN, PE, Assistant Director Public Works Department, Capital Management Division RANDY BELL, PE, Capital Projects Manager Public Works Department, Capital Management Division JIM POLSGROVE, Supervising Engineering Technician Public Works Department, Capital Management Division SUBJECT ..Title Reject all bids for Landscape and Irrigation Rehabilitation along the east side of Sommerville Drive between Shepherd Avenue and Matus Avenue - Bid File No 3492 (Council District 6) ..Body RECOMMENDATION Staff recommends Council reject all bids for Landscape and Irrigation Rehabilitation along the east side of Sommerville Drive between Shepherd Avenue and Matus Avenue. EXECUTIVE SUMMARY The Public Works Department seeks to implement the Landscape and Irrigation Rehabilitation along the east side of Sommerville Drive between Shepherd Avenue and Matus Avenue project. Funding for this project is provided by Community Facilities District No. 2 funds. The scope of work includes the removal and replacement of the landscape and irrigation improvements within the project limits. The lowest responsive and responsible construction bid of $217,800 exceeds the available funding by 41%. The additional funds required to execute a construction contract with the low bidder are in excess of what can be provided by the funding source and staff therefore recommends rejecting all bids and re-evaluating the project scope of work in preparation for rebidding the project. BACKGROUND Public Works Department staff prepared construction contract documents for the Landscape and Irrigation Rehabilitation along the east side of Sommerville Drive between Shepherd Avenue and Matus Avenue. The project is funded by Community Facilities District No. 2 funds. The project includes removal of existing landscaping and irrigation, amending the existing soil per soils report recommendations, installing and testing irrigation components, planting new landscaping and mulching. No additional right-of-way was acquired to accommodate the planned rehabilitation. On October 7, 2016, a Notice Inviting Bids was posted on the City's website and faxed to eight building exchanges. Construction contract documents were distributed to six prospective bidders. Three sealed bids were received and opened in the public bid opening on November 1, 2016. Stockbridge General Contracting, Inc. submitted the lowest responsive and responsible bid in the amount of $217,800. The Engineer's Estimate was listed as $155,000. The bid was 41% above the Engineer's Estimate. The physical components of the project were re-evaluated by the design consultant to determine if an unexpected cost increase had influenced the bid amounts. After a determination by the consultant that this was not the case, it is believed that the estimated cost of the project was substantially lower than the existing market bidding prices. Staff, therefore, recommends that Council reject all bids. Staff will re-evaluate the project and may reduce or eliminate certain aspects of work in an attempt to equate the scope of work with existing market bidding prices. ENVIRONMENTAL FINDINGS Not a project for the purposes of the California Environmental Quality Act (CEQA). LOCAL PREFERENCE Local preference was not implemented because this item is rejecting all bids. FISCAL IMPACT As the recommendation is for rejection of bids, there is no fiscal impact. Attachment: Evaluation of Bid Proposal Vicinity Map