REPORT TO COUNCIL
SUBJECT
Title
Reject a Bid Received in Response to Invitation for Bids No. F17-118 Recondition a Trash Compactor at The SMaRT Station
Report
REPORT IN BRIEF
Council approval is requested to reject a bid in the amount of $190,000 submitted by DW Nicholson Corporations in response to Invitation for Bids No. F17-118 to Recondition the Transpack Compactor at The SMaRT Station.
EXISTING POLICY
Pursuant to Chapter 2.08 of the Sunnyvale Municipal Code, City Council approval is required to reject, in whole or in part, bids in excess of one hundred thousand dollars ($100,000).
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
The scope of this project is to recondition and reline the Harris/AMFAB Transpak (Trash) Compactor at the SMaRT Station, and to remove and replace the City Provided main cylinder. This compactor is the primary means of loading residues into transfer trailers for delivery to the landfill.
Following a competitive bid process conducted in April 2017, only one bid was received from DW Nicholson Corporation in the amount of $190,000. This exceeds staff’s estimate of $125,000 for the repairs.
Rejecting the sole bid will provide city staff an opportunity to reevaluate the specifications and re-advertise the project with increased outreach to encourage a higher bidder response rate.
FISCAL IMPACT
No fiscal impact results from this bid rejection.
Funding Source
SMaRT Station capital replacement is accounted for in the SMaRT Station Replacement Fund and funded through contributions from the partner cities. Sunnyvale’s share is provided for by the Solid Waste Management Fund.
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 of $190,000 received from DW Nicholson Corporation in response to Invitation for Bids No. F17-118.
Staff
Prepared by: Pete Gonda, Purchasing Officer
Reviewed by: Timothy J. Kirby, Director of Finance
Reviewed by: Kent Steffens, Assistant City Manager
Reviewed by: Walter C. Rossmann, Assistant City Manager
Approved by: Deanna J. Santana, City Manager
ATTACHMENT
1. Bid Summary