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
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