07-26-2011 CC RPT 47 - Laserfiche WebLink

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R-1 VEL `i1 D E Cit of . art. , 1nni . atior? City Council Memorandum TO: HONORABLE MAYOR, CITY COUNCIL, DATE: July 26, 2011 FROM: PUBLIC WORKS DEPARTMENT ITEM NO: 47 WARDS: 2 and 4 SUBJECT: BID NO. 6982 - 2010 -2011 MINOR STREET REHABILITATION, PHASE 3— REJECT ALL BIDS ISSUE The issue for City Council consideration is rejection of all bids and release of related bid bonds received for the construction of 2010 -2011 Minor Street Rehabilitation, Phase 3 project. RECOMMENDATION That the City Council reject all bids and release related bid bonds received for the 2010 -2011 Minor Street Rehabilitation, Phase 3 project —Bid No. 6982. BACKGROUND This is the third and final phase of the 2010 -2011 Minor Street Rehabilitation project. The Project will provide for the rehabilitation of deteriorated pavement and reconstruction of damaged curb, gutter and sidewalk along thirty -eight minor streets clustered in two different geographic areas in the City (Attachments 1 and 2). For the streets in the Via Vista Project area (Attachment 1), the Public Works Department proposed utilizing an Asphalt Rubber Aggregate Membrane (ARAM) in lieu of a traditional asphalt resurfacing. The ARAM method is projected to cost approximately 50% less than a traditional overlay while producing a superior membrane preventing oxidation of the pavement and water infiltration. On June 28, 2011, five (5) bids were received for the construction of this project. After the bids were opened a bid protest was received from the second lowest bidder over certain contractor requirements in the specifications. After reviewing the specifications and bid proposals, the Public Works Department believes sections of the specifications should be revised to clarify the various contractor requirements contained in the specifications such as deleting the requirement for the contractor's qualifying experience with defined geographic locations and submittals of required permits for the project. As a result, the Public Works Department recommends that the City Council reject all bids (Attachment 3), release all related bid bonds and direct the Public Works Department to revise the specifications to clarify the terms in question and then re- advertise the project for bids. The Purchasing Services Manager concurs with the recommendation above. 47 -1