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Item 14 - Resolution Rejecting Nonresponsive Bid 014-97/98 Surface Patch Program AGfO-t DATE: Honorable Mayor and Members of the City Council James L. Bowersox, City Mana~ James R. Williams, Director of Public Services ~ Norm Ginsburg, Interim Sr. Management Analysl-;,!J- March 31, 1998 TO: FROM: INITIATED BY: SUBJECT: Resolution Reiectina NonresDonsive Bid No 014-97/98--Surface Patch Proaram 1998-1999 Street Maintenance Proaram ABSTRACT The proposed resolution rejects a single bid received from Asphalt, Inc., as nonresponsive. This single bid is 300% over the Engineer's Estimate. Further, the resolution, authorizes the Public Services Department to initiate the City's Open Market Process to personally solicit and secure written bids for the Surface Patch Program, 1998/99 Street Maintenance Program. Given the size of this project and the need to gain a valid bid within the Engineer's Estimate as soon as possible, staff recommends Council reject the single bid from Asphalt, Inc. and adopt the attached resolution. ENVIRONMENTAL REVIEW This item is not subject to the California Environmental Quality Act (CEQA) review. FISCAL IMPACT None. ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE Asphalt, Inc., P.O. Box 1356, EI Cajon, CA 92022-1356 RECOMMENDATION It is recommended the City Council: (1) adopt the attached resolution rejecting Asphalt, Inc.'s bid as nonresponsive; (2) authorize the Public Services Department to rebid this project using the City's Open Market process--poway Municipal Code Section 3.28.080; and (3) authorize the City Manager to sign necessary contract documents. ACTION , 1/5 MAR 31 1998 lTEM14 CITY OF POWAY This report is included on the Consent Calendar. There will be no separate discussion of the report prior to approval by the City Council unless members of the Council, staff or public request it to be removed from the Consent Calendar and discussed separately. If you wish to have this report pulled fOf discussion, please fin out a slip indicating the report number and give it to the City Clerk prior to the beginning of the City Council meeting. AGENDA REPORT FROM: Honorable Mayor and Members of the City Council James L. Bowersox, City Mana~ James R. Williams, Director of Public Services Norm Ginsburg, Interim Sr. Management Analyst ",) TO: INITIATED BY: DATE: March 31, 1998 SUBJECT: Resolution ReiectinQ Nonresponsive Bid No 014-97/98--Surface Patch ProQram 1998-1999 Street Maintenance Proaram BACKGROUND Public Services Maintenance and Operations staff prepared a public bid document for the annual Surface Patch Program. Completed bid documents were due in the Office of the City Clerk, Monday, March 9, 1998. Surface patching is a required street maintenance element before the initiation of either a comprehensive cape or slurry sealing project. The street surface patching provides a stable base upon which to apply either cape or slurry seal materials. It is a necessary requisite to insure that these major street improvement activities will have a longer road life. Staff developed detailed specifications to describe the parameters of this project. Depending upon how much field work the contractor encountered, the Engineer's Estimate ranged from $20,000- $50,000. Likewise, the identified project work ranged from 30,000 to 100,000 square feet, again depending upon dynamically identified field needs. Concomitant with the application of asphalt patching, the awarded contractor would be responsible for the removal and replacement of raised pavement markers, temporary traffic legends, lane striping and utility cover painting. The City of Poway would provide construction surveying and staking. Moreover, the City would issue the contractor's Right -of-Way Permit at no cost. To cover any technical questions arising from the disseminated bid document, Public Services Department staff provided a prebid meeting to interested contractors on Tuesday, March 3, 1998. FINDINGS A Notice Inviting Sealed Bids was published in the poway Chieftain in accordance with public bidding requirements on February 19 and February 26, 1998. Public Services' records indicated that three asphalt contractors took out the prepared bid specifications. One bid was received from Asphalt, Inc., in the amount of $152,000. 2/5 MAR 3 1 1996 n eM 14 ~ Reiection of Bid No. 014-97/98 March 31,1998 Page 2 This single bid significantly exceeded the Engineer's Estimate, in excess of 300%. Moreover, this street maintenance element does not have sufficient monies budgeted to meet this proposed bid price. Therefore, staff cannot recommend this single bid. Given the excessive overage to the Engineer's Estimate, staff considers Asphalt, Inc.'s bid as nonresponsive. Staff suspects that today's high construction business activities may be discouraging potential contractors from bidding on this relatively small project. Staff does not believe that legal readvertising this project will not result in gaining any new bids within the Engineer's Estimate. State Public Contract Code sections 20166 and 20167 provides that when the City receives no responsive bids, the City Council may propose that the project be carried out without further complying with public bid requirements. Given this excessive, non-responsive bid, staff interprets these circumstances as not receiving any responsive bid. As such, given a Council's four-fifths vote, the Council can authorize the Public Services Department to use the City's Open Market process--Poway Municipal Code Section 3.28.080. To secure the needed asphalt services, it will require personal telephone calls to area asphalt contractors soliciting written bids. In this process, staff will attempt to gain at least three written bids. It is important to secure this necessary street maintenance project bid as soon as possible. Delays in awarding an asphalt patching contract will negatively influence the start of the City's pending cape or slurry sealing street maintenance projects this spring and summer, 1998. ENVIRONMENTAL REVIEW This action is not subject to the California Environmental Quality Act (CEOA) review. FISCAL IMPACT None. ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE A copy of this report has been mailed to Asphalt, Inc., P.O. Box 1356, EI Cajon, California 92022- 1356 RECOMMENDATION It is recommended that (1) the City Council adopt the attached resolution rejecting Asphalt, Inc.'s bid as nonresponsive; (2) authorize the Public Services Department to rebid the project using the City's Open Market procedure identified in the Poway Municipal Code Section 3.28.080; and (3) authorize the City Manager to sign necessary contract documents. Attachments: 1. Resolution c:\wpfilesldirsdata\councillstaffrpt\rej0331.400 MAR 3 1 199B lTEII14 3/5 RESOLUTION NO. 98- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA REJECTING BID NO. 014-97/98 - SURFACE PATCH PROGRAM IN ACCORDANCE WITH POWA Y MUNICIPAL CODE SECTION 3.28.080 WHEREAS, Public Services Maintenance and Operations staff prepared a public bid document for their annual Surface Patch Program--Bid No. 014-97/98; and WHEREAS, a public notice referring to the availability of this bid document appeared in the Poway Chieftain, a newspaper of general circulation on February 19 and 26,1998;and WHEREAS, the Public Services Department held a prebid meeting on March 3, 1998 to answer technical questions arising from this disseminated bid document; and WHEREAS, the City received a single bid from Asphalt, Inc. In the amount of $152,000, 300% over the Engineer's Estimate; and WHEREAS, given the circumstance cited above, the City Council may declare that the City did not receive any responsive bids to its 1998-99 Surface Patching Program and may authorize the Public Services Department to use the City's Open Market Process as defined in the Poway Municipal Code Section 3.28.080; and WHEREAS, the City Council may authorize the City Manager to sign necessary contract documents arising out of the Open Market Process. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Poway, California, does hereby resolve that: Section 1: The single bid received from Asphalt, Inc., Lakeside, CA in the amount of $152,000 is 300% over the Engineer's Estimate. Section 2: The City Council rejects this bid and declares it to be non-responsive. Section 3: The City Council finds and declares that it is improbable that readvertising this bid will result in a bid within the Engineer's Estimate in a reasonable timeframe. Section 4: ,. The City Council, in conformance with the State Public Contract Code Sections 20166 and 20167, declares that this street maintenance project can be performed more economically in the open market. ATTACHMENT 1 MAR 3 1 1998 fa r:1lI 14 4/5 '4 Resolution 98 - Page 2 Section 5: The City Council authorizes the City Manager to sign the necessary contract document on behalf of the City Council. PASSED, ADOPTED, and APPROVED by the City Council of the City of Poway at a regular meeting thereof this 31 st day of March, 1998. Don Higginson, Mayor ATTEST: Marjorie K. Wahlsten, City Clerk STATE OF CALIFORNIA ) ) COUNTY OF SAN DIEGO) I, Marjorie K. Wahlsten, City Clerk of the City of Poway do hereby certify, under penalty of perjury, that the foregoing Resolution No. 98 - , was duly adopted by the City Council at a meeting of said City Council held on the 31st day of March 1998, and that it was so adopted by the following vote: AYES: NOES: ABSTAIN: ABSENT: Marjorie K. Wahlsten, City Clerk CITY OF POWAY IU.R 31 1996 'tEU14 5/5