HomeMy WebLinkAbout23A - REJECTION BIDS FOR CATALINA STREET AND DIAMOND PARK WATER IMPROVEMENTSREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
OCTOBER 17, 2011
TITLE:
REJECTION OF BIDS FOR CATALINA
STREET PUMP OWNERS
ASSOCIATION WATER SERVICE
CONNECTION AND DIAMOND PARK
MUTUAL WATER COMPANY WATER
MAIN IMPROVEMENTS (PROJECT
NOS. 10-6403 AND 10-6404)
PROPOSITION 84 GRANT
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
? As Recommended
? As Amended
? Ordinance on 1s` Reading
? Ordinance on 2nd Reading
? Implementing Resolution
? Set Public Hearing For,_
CONTINUED TO
FILE NUMBER
Reject all bids for the Catalina Street Pump Owners Association Water Service Connection and
Diamond Water Company Water Main Improvement projects.
DISCUSSION
The Catalina Street Pump Owners Association (CSPOA) and the Diamond Park Mutual Water
Company (DPMWC) are privately owned water systems that provide domestic water service to
approximately 144 residences in the City (Exhibit 1). The wells serving CSPOA and DPMWC are
contaminated with uranium, high levels of nitrates and do not meet Title 22 drinking water
standards. In addition, CSPOA and DPMWC do not have certified operators and cannot afford to
purchase a water treatment system.
Therefore, the State Department of Public Health (DPH) together with CSPOA and the DPMWC are
now requesting water service to be provided by the City. To provide service, both water services
must be connected to the Santa Ana public water system. Improvements needed include
distribution mains, services, hydrants and isolation valves and abandonment of existing private
wells. Once completed, the residents will have access to City water.
A resolution was adopted by the City on July 18, 2011 allowing the City to accept a Proposition 84
grant to finance the construction costs for the public water system improvements.
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Rejection of Bids for
Catalina Street Pump Owners Association Water Service Connection & Diamond Park Mutual
Water Company Water Main Improvements (Project Nos. 10-6403 & 10-6404)
October 17, 2011
Page 2
A total of 6 bids were received for the CSPOA and all were responsive. The lowest bid was
submitted by Stephen Doreck Equipment Rentals, Inc., for $135,880 which is below the Engineer's
estimate of $337,516. These bids were as follows:
Santa Ana Contractors receiving notices
Contractors requesting bidding documents:
Bids received:
Bids received from Santa Ana Contractors:
NAME OF RESPONSIVE BIDDER
1. Stephen Doreck Equipment Rentals, Inc.
2. Garcia Juarez Construction
3. J.A. Salazar Construction & Supply
4. J.T. Malloy, Inc.
5. Atlas-Allied, Inc.
6. J. De Sigio Construction & Supply
Corporation
6
16
6
0
CITY TOTAL BID
Pico Rivera $135,880
Brea $182,898
La Habra $201,315
Los Angeles $244,310
Anaheim $286,620
Baldwin Park $383,165
A total of 7 bids were received for the DPMWC on September 27, 2011. These bids were as
follows:
6
Santa Ana Contractors receiving notices
Contractors requesting bidding documents: 26
Bids received: 7
Bids received from Santa Ana Contractors: 0
NAME OF RESPONSIVE BIDDER CITY
1. J.A. Salazar Construction & Supply La Habra
2. Stephen Doreck Equipment Rentals, Inc. Pico Rivera
3. Garcia Juarez Construction Brea
4. J.T. Malloy, Inc. Los Angeles
5. J. De Sigio Construction & Supply Corporation Baldwin Park
6. Atlas-Allied, Inc. Anaheim
7. EAR Engineering Construction and Support Services Riverside
TnTAI Rin
$621,656
$726,764
$817,923
$842,994
$937,565
$939,000
$1,021,615
The City received a bid protest from Stephen Doreck Equipment Rentals, Inc. alleging that the
apparent low bidder submitted a bid without Appendices E and F, which are related to
Disadvantaged Business Enterprise (DBE) and should therefore be disqualified for this project.
After further analysis of all the bids and in consultation with the City Attorney's office, staff
23A-2
Rejection of Bids for
Catalina Street Pump Owners Association Water Service Connection & Diamond Park Mutual
Water Company Water Main Improvements (Project Nos. 10-6403 & 10-6404)
October 17, 2011
Page 3
concluded that failure of the apparent low bidder to provide Appendices E and F with its bid is a
minor inconsistency.
In reviewing the bidding documents, staff determined that these documents were developed at a
time when the City believed federal funds would be used to complete both projects. Since that
time, Proposition 84 funding was secured for both projects which does not require inclusion of
disadvantaged business outreach.
Since the source of funding does not have a DBE requirement, staff recommends that all bids for
both projects be rejected and re-advertised with new contract documents. The documents will
remove the DBE requirements and will provide clear directions to contractors which will most likely
result in more competitive bids for the City. Following Council action, staff will revise the notice
inviting bids and rebid both water main improvement projects.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
FISCAL IMPACT
There is no fiscal impact associated with this action.
Raul Godinez I
Executive Dire r
Public Works Agency
RG/ET
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