10-17-2014 BPU RPT 10 - Laserfiche WebLink

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W A T E R E N E R G Y L[ F RIVERSIDE PUBLIC UTILITIES Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: OCTOBER 17, 2014 ITEM NO: 10 SUBJECT: REJECTION OF ALL BIDS FOR MAGNOLIA -PLAZA RELIABILITY PROJECT BID NO. 7268 ISSUE: The issue for Board of Public Utilities consideration is rejection of all bids received for Magnolia Plaza Reliability Project's Demolition and Site Preparation Contract, Bid No. 7268. RECOMMENDATION: That the Board of Public Utilities reject all bids for Bid No. 7268 for the Magnolia -Plaza Reliability Project Demolition and Site Preparation Contract, and approve the release of all bid guarantees. BACKGROUND: Riverside Public Utilities has kept up with growth and capacity needs in the City of Riverside's neighborhoods by adding substations, completing voltage conversion projects and improving the transmission and distribution systems. In order to keep pace with growth and maintain reliability, the Magnolia Plaza Reliability Project (MPRP) was initiated and is scheduled for completion in December 2015. The MPRP includes the improvement of Plaza substation, improvements to the transmission and distribution system and the retirement of Magnolia substation. On May 13, 2014, Bid No. 7198 was issued for demolition and comprehensive site preparation at Plaza substation. Only one bid was received and that bidder failed to meet the requirements of the bid specification. Accordingly, on July 18, 2014, the Board rejected the bid submitted by C.S. Legacy Construction, Inc. as non - responsive. Staff reviewed the scope of work and revised the bid specifications to improve the pool of bidders. The revisions eliminated specialized electrical distribution civil work and work related to street improvements. On August 7, 2014, Bid No. 7268 was issued for this project. Two bids were received on August 26, 2014 with the following results: Bidder Bid Total Evaluation Fata Construction and Development, Riverside, $887,300 Non - responsive — Bidder listed California two subcontractors for the same work. Genesis Construction, Hemet, California $928,777 Lowest apparent bid ➢ Engineer's Estimate $ 527,500 The bid submitted by Fata Construction and Development of Riverside, California was deemed to be non - responsive as Fata listed multiple subcontractors for the same work, which is a violation of the California subcontractor listing laws (Public Contracts Code section 4104). The remaining bid submitted by Genesis Construction is approximately 76% above the Engineer's estimate. Awarding the contract to the lowest apparent bidder will adversely impact the project's budget.