REPORT TO COUNCIL
SUBJECT
Title
Reject all Bids Received for the Refurbishment of Water Tank at Wolfe and Evelyn Water Plant Project and Make a Finding that the Action Does not Constitute a “Project” Within the Meaning of the California Environmental Quality Act (CEQA) Guidelines Section 15378(b)(4) (PW-25-06)
Report
REPORT IN BRIEF
Approval is requested to reject all bids received in response to an invitation for bids for PW25-06, Refurbishment of Water Tank at Wolfe and Evelyn Water Plant. The first apparent low bidder withdrew their bid due to a mathematical error, and all bids exceeded the engineer's estimate.
EXISTING POLICY
Pursuant to Chapter 2.09.140(b)of the Sunnyvale Municipal Code, the City Council may reject bids or proposals in response to formal competitive bid solicitations. This Code section also provides that if all bids are rejected, the City has the discretion to re-advertise.
ENVIRONMENTAL REVIEW
The rejection of all bids is not subject to the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15061(b)(4) as CEQA does not apply where the project is rejected or disapproved.
BACKGROUND AND DISCUSSION
The Refurbishment of Water Tank at Wolfe & Evelyn Project (Project No. UW-20-01) was publicly advertised for competitive bidding through the City’s DemandStar procurement platform on December 20, 2024. Seventy-five (75) requests were received to access the bid documents. Sealed bids were opened on March 12, 2025, and five (5) bids were received. Euro Style Management submitted the lowest responsive and responsible bid of $4,374,400; however, the firm formally withdrew its bid on March 18, 2025, citing a mathematical error. Following this withdrawal, Unified Field Services Corporation was identified as the next lowest responsive and responsible bidder, with a proposed contract amount of $5,250,847 (see Attachment 1 - Bid Summary).
The five bids received are substantially higher than both the engineer’s estimate of $3,836,950 and the available budget of $3,426,697. Rejecting all bids will give staff the opportunity to reevaluate the design and identify and scope more cost-effective options.
FISCAL IMPACT
There is no fiscal impact resulting from rejecting all bids.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the City Hall reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
RECOMMENDATION
Recommendation
Reject all bids received in response to Invitation for Bids PW25-06, Refurbishment of Water Tank at Wolfe and Evelyn Water Plant.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
___ Contract or franchise
EXEMPT FROM THE LEVINE ACT
_X_ Competitively bid contract*
___ Labor or personal employment contract
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
___ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: David Battaglia, Purchasing Officer
Reviewed by: Matthew Paulin, Director of Finance
Reviewed by: Chip Taylor, Director of Public Works
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Bid Summary