DATE: August 21, 2018
TO: Board of Supervisors
SUBMITTED BY: Steven E. White, Director
Department of Public Works and Planning
SUBJECT: Contract 18-03-C, County Service Area No. 5 - Wildwood Estates Pipeline Loops Installation
RECOMMENDED ACTION(S):
TITLE
Reject all bids for Contract No. 18-03-C, County Service Area No. 5 - Wildwood Estates Pipeline Loops Installation.
REPORT
Approval of the recommended action would reject all bids received and defer the proposed pipeline project for County Service Area No. 5 (CSA 5) - Wildwood Estates, until the project scope is modified to phase construction of the project in order to stay within budget. This item pertains to a location in District 5.
ALTERNATIVE ACTION(S):
There is no viable alternative action. CSA 5 does not have sufficient funds to construct the necessary improvements based on the lowest responsive bid.
FISCAL IMPACT:
There is no Net County Cost associated with the recommended action. All costs associated with the pipeline project are funded by CSA 5. Sufficient appropriations and estimated revenues are included in the Department of Public Works and Planning - County Service Area 5 Org 9145 FY 2018-19 Adopted Budget.
DISCUSSION:
CSA 5 - Wildwood Estates is a subdivision located adjacent to the Kings River, approximately two miles northeast of the unincorporated community of Centerville. The community is provided potable water from the CSA 5 water system which consists of two well sites, two hydropneumatic tanks, and a series of pipelines used to deliver water to residents within the District.
In October of 2013, the California Department of Public Health, Drinking Water Office, which now operates under the State Water Resources Control Board (SWRCB), issued an order that required CSA 5 “to provide continuous chlorination at both well sites sufficient to provide 4 - log virus removal.” Removal or inactivation of viruses is measured on a logarithmic scale; and a 4 - log equates to a 99.99% reduction. Since receipt of the order, the County has explored solutions in an attempt to be within the CSA’s budget in order to reach compliance.
In general, the planned work consists of the installation of a pipeline of sufficient size and length to achieve disinfectant contact time necessary for the neutralization of viruses in the water at the two well sites before the water enters the distribution system.
The Department allowed contractors to submit bids on polyvinyl chloride (PVC) and high-density polyethylene (HDPE) pipeline alternatives for the project in an attempt to achieve the lowest possible price. Four bids were received on June 21, 2018. The lowest responsive bid is in the amount of $205,780, which is $65,416, or 46.6% higher than the engineer’s estimate of $140,364. The bidders and their respective bid amounts are shown below:
Bidder Bid Alternative
1. R.T. Nelson Company $205,780.00 PVC
2. Hobbs Construction $209,340.00 PVC
3. Hobbs Construction $244.940.00 HDPE
4. American Pipeline Services $279,944.92 PVC
Department staff identified the difference predominantly in the fittings and thrust blocks line item, which was significantly higher than expected.
If your Board approves the recommendation to reject all bids, Department staff will modify the project in an attempt to reduce the cost and still fulfill the order issued by SWRCB.
REFERENCE MATERIAL:
BAI #44, March 15, 2016
BAI #69, June 16, 2015
BAI #14, July 15, 2014
BAI #15, July 7, 2009
ATTACHMENTS INCLUDED AND/OR ON FILE:
Location Map
CAO ANALYST:
Sonia M. De La Rosa