May 11, 2004

SUBJECT: Rejection of Bids for Modifications of the Algae Float Transfer System at the Water Pollution Control Plant (#F0301-42)

REPORT IN BRIEF

Request is made that Council reject the two bids received in response to Invitation for Bids No. F0301-42 for Modifications of the Algae Float Transfer System at the Water Pollution Control Plant (Public Works Project #UY-00/05-01).

BACKGROUND

The scope of work for this project is to modify the algae float system at the Water Pollution Control Plant (WPCP). The modifications would automate the pumping of algae float material to either the oxidations pond or the digestor systems, a process that is currently done manually by WPCP Staff. The automation of the pumping float material to the digesters will optimize methane gas collection for use as fuel to generate electricity in the Plants PGF facility as well as reduce staff time and increase overall system efficiency. Included in the project are modifications to the float piping system, and the ability to interface with the existing WPCP process control system. This project is funded through the Water & Wastewater Revenue Bonds, Series 2001.

DISCUSSION

Bid specifications were prepared by Public Works and Purchasing staff. The Notice Inviting Bids was published in The Sun on February 4, 2004. The bid package was distributed to Bay Area Builders Exchanges and broadcast to potential contractors through the DemandStar by Onvia procurement network.

Thirteen contractors requested bid documents.

Sealed bids were publicly opened on February 25, 2004. Two responsive bids were received.

Although the bid from D. W. Nicholson Corporation, the lowest responsive and responsible bidder, is lower than the engineer's estimate, the engineer's estimate is higher than the project budget which was based on planning estimates that are several years old.

Staff is currently evaluating the status, including individual project budgets, of the Water & Wastewater Revenue Bond Program. Project scopes have now become better defined as design activity has progressed on the Bond funded projects. This enhanced scope definition has allowed for greater precision in the estimated costs of the various projects. Staff intends to return to Council later this year with a comprehensive update on the Bond Program. As part of this update, staff may recommend adjustments to either increase or decrease individual project budgets. The funding for the Algae Float Transfer System project would be evaluated as part of this overall Bond Program update.

FISCAL IMPACT

A total of $17,000 has already been expended for project design and preparation of contract documents. Rejection of bids has no further fiscal impact at this time

RECOMMENDATION

It is recommended that Council reject both bids received in response to Invitation for Bids #F0301-42 for modifications of the algae float transfer system at the Water Pollution Control Plant (Project No. UY-00/05-01) and direct staff to re-evaluate this project.

Prepared by:

Elaine Wesely
Purchasing Officer

Reviewed by:

Mary J. Bradley
Director, Finance

Reviewed by:


Marvin Rose
Director, Public Works

Approved by:

Amy Chan
City Manager