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HomeMy WebLinkAboutStaff Report 3.D 02/27/2006CITY OF PETALUMA, CALIFORNIA &D AGENDA BILL February 27, 2005 Aeenda Title: Resolution Rejecting The Sole Bid for the Hauling Meetine Date: February 27, 2006 and Management of Water Pollution Control Plant Wastewater Biosolids and Grit. Cateeory (check one): ❑ Unfinished Business Department: Water Resources & Conservation Meetine Time: ® 3:00 PM ❑ 7:00 PM ® Consent Calendar ❑ Public Hearing ❑ New Business ❑ Presentation Director: Michael Ban, P.E. M Cost of Proposal: Not Applicable (N/A) Amount Budeeted: N/A Attachments to Aeenda Packet Item: Proposed Resolution Rejecting The Sole Bid Location Map (Exhibit A) Contact Person: Margaret Orr, P.E. Phone Number: 778-4589 Account Number: N/A Name of Fund: N/A Summary Statement: The City received one (1) bid for the Hauling and Management of Water Pollution Control Plant Wastewater Biosolids and Grit for $197,860.00 on December 8, 2005. The bid did not conform to the City's bid requirements. Recommended Citv Council Action/Sueeested Motion: City Management recommends that the City Council adopt the resolution rejecting the sole bid. Reviewed by Admin. Svc. Dir: Date: Todav's Date: 1/24/06 Reviewed by City Attornev: QDate: Revision # and Date Revised: I ADDroveAl by City Manaeer: Date: File Code: SAWR&C\wastewa1er\6210\60- biosolidss\CCTfeb 27, 2006\reject bids Agenda Bill and CC Report.doc CITY OF PETALUMA, CALIFORNIA FEBRUARY 27, 2006 AGENDA REPORT FOR RESOLUTION REJECTING THE SOLE BID FOR THE HAULING AND MANAGEMENT OF WATER POLLUTION CONTROL PLANT WASTEWATER BIOSOLIDS AND GRIT EXECUTIVE SUMMARY: The City received one (1) bid for the Hauling and Management of Water Pollution Control Plant Wastewater Biosolids and Grit for $197,860.00 on December 8, 2005. The bid did not conform to the City's bid requirements. City Management recommends that the City Council adopt the resolution rejecting the sole bid. 2. BACKGROUND: The Department of Water Resources and Conservation prepared the plans and specifications for the hauling and management of Water Pollution Control Plant wastewater biosolids and grit. The Notice Inviting Bids was issued on November 30, 2005. The bid was received and opened on December 8, 2005. The following is a summary of the bid received: NAME OF BIDDER BID AMOUNT Industrial Carting, Santa Rosa, CA $197,860 The engineer's estimate for construction is $220,000. The sole bid contained an irregularity. The bid documents required the bidders to lock in the unit bid prices during the first year of the three-year contract with provisions for adjustments for inflation based on CONSUMERS PRICE INDEX (CPI) after the first year. However, the sole bidder did not agree to fixed unit pricing for year one. The bid prices were subject to adjustments if rates charged by disposal sites (Landfill or Land Application) increase in the future; therefore, the bid did not comply with the requirements of the bid documents. The City Attorney recommends the bid be rejected. 3. ALTERNATIVES: 1. Award the contract to the sole bidder. 2. Reject the sole bid and issue a request for proposals (RFP) from hauling contractors. The RFP process will allow the City to evaluate disposal options on a criteria basis. 3. Take no action. 4. FINANCIAL IMPACTS: If the City Council decides to waive the bid irregularity and award the contract with provisions for future cost adjustments, the estimated first year costs are described in the following table: Table 2 Estimated Costs Item Cost Contract (low bid) 147,860 Potential "Pass Through" Pricing $20,000 Potentiate Administration/Inspection 10,000 Project Contingency 30,000 Total $257,860 CONCLUSION: Following the City Council action, the City will either enter a contract with the sole bidder or issue a request for proposals (RFP) for hauling and management of wastewater biosolids and grit. 6. OUTCOMES OR PERFORMANCE MEASUREMENTS THAT WILL IDENTIFY SUCCESS OR, COMPLETION: N/A 7. RECOMMENDATION: City Management recommends that the City Council adopt the resolution rejecting the sole bid. Estimate since staff does not know how much the landfill or land application sites will cost for disposal with this scenario. 1 2 3 REJECTING THE SOLE BID FOR THE HAULING AND MANAGEMENT OF WATER 4 POLLUTION CONTROL PLANT WASTEWATER BIOSOLIDS AND GRIT 5 6 WHEREAS, the wastewater biosolids at the Water Pollution Control Plant are periodically 7 required removal; 8 9 WHEREAS, in accordance with the City of Petaluma Charter and Municipal Code, California 10 Public Contract Code Section 20162 and other applicable law, the City of Petaluma solicited bids 11 for the Project; and 12 13 WHERAS, the engineer's estimate for the Project is $220,000; and 14 15 WHEREAS, only one (1) bid for the Project was received on December 8, 2005, and opened in 16 accordance with California Public Contract Code Section 4105.5 and other applicable law; and 17 18 WHEREAS, the apparent low bid for the Project was submitted by Industrial Carting in the 19 amount of $197,860; and 20 21 WHEREAS, the apparent low bid contained a bidding irregularity; and 22 23 WHEREAS, the City Attorney recommends the sole bid be rejected; and 24 25 BE IT RESOLVED by the Petaluma City Council that: 26 1. The sole bid is rejected. 27 2. City Management is directed to issue a Request for Proposals for hauling and 28 management of wastewater biosolids and grit. 29 3. This resolution shall become effective immediately. 0 LOCATION MAP