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HomeMy WebLinkAboutREJECTION OF BIDS 06-30-86TO: FROM: SUBJECT: WILLIAI~ HUSTON, CITY )~ANAGER PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION REJECTION OF BIDS - EL )IO~)ENA-IRVINE C)~&NNEL (FACILITY FO7) I~ROVEMENTS REACH I FOR.ASSESSMENT DISTRICT 85-1 (PHASE V-A) RECOMMENDATION: 'For the City Council meeting of June 30, 1986. It is recommended that all bids for subject project be rejected and that the project be re-advertised for bids at a later date. BACKGROUND: Subject project encompasses construction of Reach I of the E1 Modena-Irvine Channel between the Santa Aha (I-5) Freeway and Bryan Avenue and is a portion of the infrastructure improvements of East Tust!n Assessment District No. 85-1. ~his project will be administered by the City of Tustin and will be covered per terms of the Reimbursement Agreement dated April 30, 1986 between The Irvine Company and the City and a waiver letter dated June 24, 1986 from The Irvine Company. This Reimbursement Agreement provides for The Irvine Company to reimburse the City any monies expended prior to the sale of Assessment District bonds. DISCUSSION: Sealed bids for this work were opened June 24, 1986 at 10:30 a.m. and were received as follows: Contractor Business Location Bid K.E.C. Company Belczak & Sons Corona, California Orange, California $5,018.572.00 $5,361,164.00 The low bid is $1,426,172.00 or 39.7% over the engineer's estimate of $3,592,400.00. This project will be financed through Assessment District No. 85-1 proceedings. Due to the extreme variation between the engineer's .estimate and bids received, The-Irvine Company has requested that the City reject these bids and that the project be re-advertised at a later date. Staff is in concurrence with this request and recommends that all bids be rejected. It is suggested that this project (Phase I) be re-bid with Phase II which is now ready for bid advertisement as one project at the earliest possible date. JUNE 30, 1986 PAGE TWO Attached, for the City Council's information, is a tabulation of all bids received along with a copy of the letter from The Irvine Company requesting that these bids be rejected. Bob Ledendecker Director of Public Works/City Engineer BL:jm Attachment cc: Finance Director O00000000000000000000000000000 00000 ~0000000000000000000 O0000 d :4 00000000000000000000000 O000000 000000000000000000000000000000 000000000000000 O000000 O0 O00000 00000~0000000000 O0000000000000 000000000000000000000000000000 00000000000000000000000 O000000 ~00~ ~ ~ ~00 ~00~ 000 ~0 ~ ~00000 ~ 000000000000000000000000000000 0000000000000000000000000000 O0 00000~0~00~ 00~ 0000 ~0 ~ ~ ~ 00 ~00~ ~ ~0 ~ 0 ,,.4 0 E~ 0000000000000000000000 000~00000~000~0~0~000 O0000000000000000 O0000 0 O00000000000000 O0 O0000 0 0000000000000000000000 0 00000000000000000 O0000 0 000~00000~000~0~0~000 0 .