REPORT TO COUNCIL
SUBJECT
Title
Reject the Sole Bid Received for Sewer Siphon Cleaning and Inspection 2018 (F18-295)
Report
REPORT IN BRIEF
Approval is requested to reject the sole bid received in response to Invitation for Bids F18-295 for Sewer Siphon Cleaning and Inspection 2018. The sole bid is significantly higher than the available budget.
EXISTING POLICY
Section 2.09.140(b) of the Municipal Code permits the City Council to rejects bids or proposals received 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 action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
BACKGROUND AND DISCUSSION
Sewer siphons are sewer pipes that allow wastewater to cross under obstructions such as creeks, large underground pipelines, and major thoroughfares such as Central Expressway. Typical sewer main depths range from 5 to 8 feet below the street, and siphon pipes drop down below the obstruction, then rise back up on the other side utilizing gravity to move wastewater through the system. These low points along the sewer system tend to collect grease and debris, and require routine cleaning to prevent blockages; otherwise, it could result in a sewer overflow.
Staff performs a relatively light cleaning of most of the siphons every 90 days. This includes hydro flushing and some debris removal. However, staff does not have the specialized equipment needed to perform a more thorough cleaning to remove heavy debris that accumulates over time. The scope of work for this capital improvement program (CIP) project (#829100) included a thorough cleaning and removal of heavy debris and a video inspection at all 14 siphon locations around the City. It was budgeted for $101,000.
An Invitation for Bids (IFB) was advertised for competitive bidding on the City’s DemandStar public procurement network on June 7, 2018, with fourteen (14) companies requesting bid documents. Sealed bids were opened on July 11, 2018, with one (1) responsive bid received.
Pipe and Plant Solutions, Inc. submitted a bid in the amount of $1,129,480 as detailed in Attachment 1. The bid submitted by Pipe and Plant Solutions, Inc. is well above the available budget. After reviewing the bid, staff inquired with plan holders that did not bid and from the one responsive contractor to gain information about the procurement. The feedback received is that the current construction industry is very busy so contractors have reduced incentive to be competitive.
Rejecting the sole bid will allow staff an opportunity to reevaluate the scope of work and determine changes that could reduce the cost and increase bidder response. An immediate action staff will be undertaking is to solicit bids for one critical siphon on Mathilda Ave under Central Expressway. This is a two-barrel, 24-inch cast iron siphon constructed in the early 1960s. The current budget of $101,000 should be adequate to cover the costs of heavy cleaning of accumulated debris and perform a video inspection to determine its condition.
FISCAL IMPACT
No fiscal impact results from rejecting the bid.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
Reject the sole bid received from Pipe and Plant Solutions, Inc. in response to Invitation for Bids No. F18-295 for Sewer Siphon Cleaning and Inspection 2018.
Staff
Prepared by: Gregory S. Card, Purchasing Officer
Reviewed by: Timothy J. Kirby, Director of Finance
Reviewed by: Ramana Chinnakotla, Director of Environmental Services Department
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Bid Summary