REPORT TO COUNCIL
SUBJECT
Title
Reject all Bids Received for South Hill Slope Repair project (F23-060)
Report
REPORT IN BRIEF
Approval is requested to reject the all bids received in response to Invitation for Bids F23-060 for South Hill Slope Repair Project due to budget constraints.
EXISTING POLICY
Pursuant to Section 2.08.140(b) of the Sunnyvale Municipal Code, the City Council may reject 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" with the meaning of the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines section 15378(b)(4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
BACKGROUND AND DISCUSSION
An invitation for bids was posted on City's DemandStar public procurement network and published on the City's website on December 29, 2022. Thirty-Three (33) contractors requested bid documents with six (6) sealed bids publicly opened on February 8, 2023. The bid summary is contained in Attachment 1 to this report.
The six bids received are substantially higher than both the engineer's estimate of $299,840 and the available budget of $187,000. The lowest bid is $495,622, which is $308,622 above the available budget. Rejecting all bids will allow staff an opportunity to reevaluate the design to identify and scope more cost-effective options.
The South Hill Slope Repair project was conceptualized in FY 2018/19 to repair the drainage berm and divert South Hill stormwater to a storm drain inlet outside the Sunnyvale Materials Recovery and Transfer Station's (SMaRT Station(r)) permitted industrial stormwater area. The intention of the project was to help meet the terms of the Baykeeper settlement agreem...
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