HomeMy WebLinkAbout8 Reject Bids for Martiswoods
AGENDA ITEM #8
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MEETING DATE: October 20, 2021
TO: Board of Directors
FROM: Neil Kaufman, P.E., Water System Engineer
SUBJECT: Reject All Bids for the Martiswoods Hydropneumatic Pump Station
Project
APPROVED BY______________________________
Brian C. Wright, General Manager
RECOMMENDATION:
Reject all bids received for construction of the Martiswoods Hydropneumatic Pump Station
project and direct staff to evaluate potential options for the Martiswoods pump and storage
tank facility.
BACKGROUND:
The Martiswoods Tank site is located at 11725 Rocky Ridge Court in the Martiswoods
subdivision. There is currently one ground level storage tank, one elevated storage tank
and one pump station at the site. The existing pump station consists of two pumps (one
duty, one standby) that take water from the ground level tank and pump it to the elevated
tank. Pump operations are based off level control in the elevated tank. The pressure zone
served by the elevated tank contains 45 single family homes, with an additional three
homes expected at build out conditions.
The elevated tank was constructed in 1982. A preliminary structural evaluation of the tank
determined that significant effort would be required to perform repairs on the tank and
upgrade the tank to meet current seismic codes as well as remove and replace existing
exterior coatings to bring to current standards. An economic evaluation performed by the
District determined that it would be more cost effective to replace the elevated tank with a
ground level hydropneumatic pump station. The existing elevated tank and pump station
would be demolished once the new hydropneumatic pump station is completed and placed
into service.
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In December 2020, the Board awarded a contract to Farr West Engineering to design the
pump station project. Advertising for bids began in August 2021, and the bid opening was
held at 10:00 AM on September 22, 2021. Two bids were received:
TOTAL AMOUNT OF BID
Bidder Location Amount Responsive
BRCO Constructors Rocklin, CA $2,110,000 Yes
TNT Industrial Contractors Sacramento, CA $2,162,759 Yes
The bid from the apparent low bidder (BRCO Constructors) is more than twice the amount
budgeted for this project, which was approximately $880,000.
Following the bid opening, staff reviewed the bid submittals with Farr West Engineering to
determine the key contributing factors to the large disparity between the District’s budget,
10-Year Capital Improvement Plan (CIP) updated in 2020 and the actual bids received. A
number of potential issues causing the cost escalation were identified.
1) Significant price increases and volatility for materials and equipment
2) Limited availability and of specialized equipment such as electrical switch gear and
generators
3) Labor shortages
Farr West noted that many local utility agencies are seeing similar cost increases with
construction bids 75% to 100% above expected pricing. The number of contractors
submitting bids is also reduced, with some projects not receiving any bids at all. This
particularly challenging with vendors of specialized electrical and pumping equipment,
where non-committal to delivery timelines are not uncommon.
In consideration of the significant difference between the received bids and budgetary
estimates, Staff is recommending that the District reject all bids received for this project.
Staff will evaluate options for the Martiswoods site, including an updated cost estimate for
the rehabilitation of the existing elevated tank and pump station. Staff will present its
findings and recommendation to the Board at a later date.
FISCAL IMPACT:
There is no direct fiscal impact associated with this item. The replacement of the
Martiswoods Pump Station was included in the District’s approved FY2020-21 Capital
Budget and 10-Year CIP planning report. This project will be postponed until a later budget
cycle for consideration and approval, with funding being held in the District’s Water utility
capital reserve fund.
ATTACHMENTS:
None