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HomeMy WebLinkAbout2005-07-14 Packet - Special CITY OF UKIAH CITY COUNCIL AGENDA SPECIAL JOINT WORKSHOP WITH UKIAH VALLEY SANITATION DISTRICT CIVIC CENTER COUNCIL CHAMBERS 300 Seminary Avenue Ukiah, CA 95482 July 14, 2005 5:30 p.m. 1. ROLL CALL- CITY COUNCIL 2. SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF UKIAH AND THE BOARD OF DIRECTORS OF THE UKIAH VALLEY SANITATION DISTRICT FOR CONSIDERATION AND POSSIBLE ACTION ON THE KIEWIT PACIFIC COMPANY BID FOR THE WASTEWATER TREATMENT PLANT CONSTRUCTION PROJECT 3. PUBLIC EXPRESSION 4. ADJOURNMENT AGENDA ITEM NO: ~ MEETING DATE: ,July 14, 2005 SUMMARY REPORT SUBJECT: SPECIAL JOINT MEETING OF THE CITY COUNCIL OF THE CITY OF UKIAH AND THE BOARD OF DIRECTORS OF THE UKIAH VALLEY SANITATION DISTRICT FOR CONSIDERATION AND POSSIBLE ACTION ON THE KIEWIT PACIFIC COMPANY BID FOR THE WASTEWATER TREATMENT PLANT CONSTRUCTION PROJECT BACKGROUND On Thursday, June 2nd, 2005, Kewit Pacific Company made a formal bid on the construction of the upgrade and expansion of the City's Waste Water Treatment Plant ("the Project"). Kewit Pacific's bid was the lowest of the two bids received at bid opening and came in at $56,538,000 or $8,538,000 above Brown and Caldwell's engineering estimate range of $42,000,000 to $48,000,000, or 25.6% above the $45,000,000 average amount of the Engineer's Estimate. Brown and Caldwell's estimate was included in the package of documents comprising the Bid Notification to Contractors, when bids were solicited for the Project. As a result OF receiving construction bids so much higher than the Engineer's Estimate and the impact of awarding that bid on the sewer rates previously considered by the City Council and the District Board, a subcommittee composed of Mayor Mark Ashiku and Council and District Board member Douglas Crane was formed to look into specific information regarding the bid and engineering design elements. The subcommittee also asked Bartle Wells Associates, which was retained as a sewer rate and bond issuance RECOMMENDED ACTION: REJECT ALL BIDS ON THE WASTE WATER TREATMENT PLANT CONSTRUCTION PROJECT ALTERNATIVE COUNCIL POLICY OPTIONS: GIVE APPROPRIATE RE-DIRECTION TO STAFF Citizens Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A Subcommittee Bernie Ziemianek, Public Utilities Director and David Rapport, City Attorney Candace Horsley, City Manager None Ap p roved: ~~.-z~-~-._--~.~'~ Candace Horsley, Cii~anager consultant, to evaluate the impact of the increased construction cost on sewer rates. Also, discussions with the City's contracted bond analysts, Bartle Wells Associates, indicated attempting to balance the additional construction cost of the plant with "acceptable" rates for the citizens was a difficult challenge. The subcommittee has considered a number of competing issues regarding the design of the Project, construction costs, and the cost of borrowing money. Council and Sanitation District Board member Crane has spent many hours reviewing the plans and specifications. The Committee has met twice with Brown and Caldwell to better understand the design choices reflected in the existing plans and specifications. It has met multiple times with staff and staff has provided additional information to the subcommittee. The subcommittee has explored with the design engineers and with staff the possible costs and benefits of accepting the Iow bid or rejecting the bid. The subcommittee will undertake a continuing review to find areas of prudent cost reductions through design and materials. Additionally, the subcommittee recommends setting a target date of December 2004 to re-bid the project with bid opening scheduled for February 2005. The subcommittee has considered the risks associated with re-bidding the project both with respect to costs and delay. Based on this investigation and analysis, the subcommittee is recommending that the City Council, with the concurrence of the Sanitation District Board of Directors, reject all bids and instruct staff to explore cost reducing modifications to the plans and specifications and the development of bid alternates with a target date of December 2004 to re-bid the project with bid opening scheduled for February 2005. In summary, it is the subcommittee's recommendation to reject all bids on the Waste Water Treatment Plant Construction Project and to plan for an appropriate re-bid commencing in December 2004. The subcommittee will present their findings and give an oral report at the special meeting.