HomeMy WebLinkAbout10 REJECTION OF ALL BIDS & AUTHORIZATION TO RE-ADVERTISE FOR BIDS FOR MOFFETT DR. BRIDGE & ROADWAY CONSTRUCTION - CIP 70224• Agenda Item 10
AGENDA REPORT Reviewed:
City Manager
Finance Director
MEETING DATE: DECEMBER 6, 2016
TO: JEFFREY C. PARKER, CITY MANAGER
FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER
SUBJECT: REJECTION OF ALL BIDS AND AUTHORIZATION TO RE -ADVERTISE FOR
BIDS FOR THE MOFFETT DRIVE BRIDGE AND ROADWAY CONSTRUCTION
PROJECT, CIP NO. 70224
SUMMARY
Staff is recommending that the City Council reject all bid proposals received on the Moffett Drive
Bridge and Roadway Construction Project, CIP No. 70224 (the "Project"). The City received six (6)
bids for the Project, all significantly higher than the engineer's original estimate.
RECOMMENDATION
It is recommended that the City Council reject all six (6) bids received on the Project and direct the
City Clerk to return all bid bonds and re -advertise for bids.
FISCAL IMPACT
Sufficient funds have been budgeted and appropriated in this Fiscal Year 2016-2017 Capital
Improvement Program for the Project in the Moffett Drive Bridge and Roadway Construction
Project (CIP No. 70224) account. The updated engineer's estimate for the Project is $6,900,000.
The Project is funded through MCAS Tax Allocation Bonds.
CORRELATION TO THE STRATEGIC PLAN
The Project would extend Moffett Drive from 500 feet east of Downs Road to 600 feet west of
Meridian Way. The Project contributes to the fulfillment of the City's Strategic Plan Goal A:
Economic and Neighborhood Development. Specifically, the Project implements Strategy 1, by
furthering the development of critical phases of Tustin Legacy.
DISCUSSION AND BACKGROUND
The City Council adopted Resolution No. 16-45 approving the plans and specifications and
authorized and directed the City Clerk to advertise for Project bids on September 20, 2016. The
Project was subsequently advertised and the bids were opened on November 8, 2016 and
evaluated. The City received six (6) bids with the total amount ranging from $10,253,294 to
$12,224,067.
The bid summary is as follows:
9 KEC Engineering................................................................ $ 10,253,294.00
Bid Rejection and Authorization to Re -advertise for Moffett Drive Bridge
December 6, 2016
Page 2
• Steve P. Rados, Inc............................................................ $ 10,776,788.00
• MCM Construction, Inc ....................................................... $ 10,999,996.00
• Reyes Construction, Inc . ....................................................$ 11,485,182.00
• USS Cal Builders................................................................ $ 12,187,154.78
• Los Angeles Engineering, Inc ............................................. $ 12,224,067.00
The bid proposal for the Project required bidders to provide cost for two (2) different alternates for
the bridge pile construction. By State law, when the City provides for alternative bids, it must
specify, prior to opening bids, the method by which it will award the contract. In this case, the
method chosen was to award the Project based upon a total price for both alternatives. The intent
of awarding the bid in this manner was to allow the City to measure the cost/benefit of the two
alternatives and then after due consideration, select the alternative which was in the City's best
interest. Unfortunately, this resulted in proposals that bid the Project in varying ways and caused
unbalanced bids.
In seeking proposals and awarding contracts for public works projects, the City is governed by the
Public Contract Code. The primary goal of provisions governing this process is to conserve public
funds through a competitive process with an outcome that results in the City awarding a contract
based upon the lowest responsible bid. This outcome was not achieved because of the manner in
which bids were submitted. For example, under the award criteria (total bid on both alternatives
being the lowest responsible bid), the lowest responsible bid on Alternative B is $7,856,310. For
this particular alternative, this actually turned out to be the highest bid among the six proposals.
The lowest individual bid on Alternative B was nearly $1 million lower ($6,883,097). Given the
unbalanced manner in which the bid proposals were submitted, the bid process did not further
either the City's goals and/or those in the Public Contract Code. To eliminate unbalanced bids for
the next bid process, staff consulted with the City Attorney's office. It was determined that
elimination of one of the alternative options would be in the City's best interest and better further
the goals of the competitive bidding process.
Pursuant to Public Contracts Code § 20166 the City Council may, in its discretion, reject all bids
and re -advertise the Project. In analyzing the unit costs for all bids received on the Project, it was
determined that other than removing one of the alternatives for the bridge pile construction
(Alternative A), no other modifications to the plans and specifications are necessary. In staffs
opinion, re -bidding the Project without Alternative A will result in overall Project costs nearer the
updated engineer's estimate.
The Project will extend Moffett Drive from +/- 500 feet east of Downs Road to +/- 600 feet west of
Meridian Way, through construction of a bridge over Peters Canyon Channel and includes
roadway, storm drain, sidewalk, and landscape improvements, as well as installation of dry utility,
and domestic water and reclaimed water for the Irvine Ranch Water District.
The tentative schedule for re -advertising, awarding and constructing the Project is as follows:
• Authorization to Advertise for Bids.............................................................12/06/2016
• First Legal Advertisement...........................................................................01/12/2017
• Second Legal Advertisement.....................................................................01/19/2017
• Bid Opening...............................................................................................02/14/2017
• Tentative Award of Contract.......................................................................03/07/2017
Bid Rejection and Authorization to Re -advertise for Moffett Drive Bridge
December 6, 2016
Page 3
• Tentative Start Construction......................................................................04/03/2017
• Estimated Completion of Construction.......................................................08/04/2018
Stack, P.E.
Public Works/City Engineer
Attachment 1: Location Map
ATTACHMENT 1
Location Map
LOCATION MAP
Moffett Drive Bridge and
Roadway Construction Proje
TUS"N 1.[WOY
PROJECT LOCATION
Moffett Drive Bridge and
Roadway Construction Project
(CIP No. 70224)
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PROJECT
LOCATION
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