Report Prepared by: Joseph D. Angulo, Acting Deputy Director, Public Works
Title
SUBJECT: Reject the Single Bid Received for the Well Site 3 Tank Removal, Project No. 117047
REPORT IN BRIEF
Consider the rejection of the single bid received to remove the elevated water storage tank at Well Site #3, and directing staff to re-bid the project.
RECOMMENDATION
City Council - Adopt a motion rejecting the single bid received for the Well Site 3 tank removal, Project No. 117047, and directing staff to advertise the project for rebidding.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Refer to staff for alternative action (specify in motion).
AUTHORITY
Charter of the City of Merced, Section 200, et seq.
Municipal Code Chapter 3.04, Article IV - Public Works Contracts. The city council, in its discretion, when it is in the best interests of the city to do so, may waive any informalities or minor irregularities in any bid process, may reject any or all bids, or may accept the bid that best serves the public purpose even though it may not be the lowest. The city council may readvertise for bids or, except as otherwise provided in this chapter, proceed with the purchase of the materials, supplies, equipment or contractual services by negotiation in the open market.
CITY COUNCIL PRIORITIES
As provided for in the 2020-21 Adopted Budget
DISCUSSION
Municipal Well Site 3
Merced’s Well Site #3 is located at 511 West 12th Street. The well site currently includes a groundwater supply well designated Well 3C and a 140-foot high elevated water tank structure. The 300,000-gallon riveted steel tank was installed in 1934 for maintaining water system pressure in the growing City of Merced. The system was designed so that groundwater is pumped out of the well and into the elevated storage tank. The water then flowed under the influence of gravity from the elevated tank to the City’s piping distribution system.
The original City Well 3 was installed on the subject site in the 1920’s. Replacement wells 3A and 3B were installed on the parcel in the 1950s. These two wells were impacted by the chemical Tetrachloroethylene, also known as Perchloroethylene (PCE). Wells 3A and 3B were destroyed in 1987 due to the PCE impacts and Well 3C was installed that same year to replace the older, shallower wells. Unfortunately, Well 3C was also impacted and it has intermittently contained detectable concentrations of PCE.
A PCE groundwater treatment system consisting of four (4) twenty-thousand (20,000) pound carbon vessels was installed at the site in September 2017. The groundwater is pumped from Well 3C, through the carbon filtration vessels, and then directly into the water piping distribution system. This plumbing arrangement completely bypasses the elevated tank. One important aspect of the PCE treatment system is that Well 3C must be operated (pumped) to send as much water as possible through the carbon vessels. Besides the primary purpose of providing a clean drinking water source to Merced, this is also to prevent the water in the vessels from becoming stagnant and facilitating the formation of bacteria on the carbon media. The 300,000-gallon water tank cannot be used as in the past because it would cause idle periods of non-pumping due to the large storage capacity of the tank.
Staff recommended demolishing the Well Site #3 tank as it is no longer needed to operate Merced’s water supply system. It has been disconnected from the water system as its continued use would serve as an impediment to the proper operation of the PCE groundwater treatment system.
Cardno Inc. (consulting engineers), under the direction of City staff, prepared plans and specifications for the tank demolition work. The project was advertised with a single bid received on April 9, 2020:
Bowen Engineering and Environmental (Fresno, CA) $318,000
The engineers estimate for the work was $260,000. Staff recommend rejecting the single bid as it significantly exceeds the bid estimate.
History and Past Actions
On August 20, 2018, the City Council awarded a contracted to Cardno Inc. for engineering demolition and design services for the tank removal.
On August 20, 2018, the City Council adopted Resolution No. 2018-56, approving and certifying a Final Environmental Impact Report for the Well 3 Tank Demolition Project, making Findings and Determinations, adopting a Statement of Facts and Overriding Considerations, and adopting a Mitigation Monitoring Program.
IMPACT ON CITY RESOURCES
This project was established as a Capital Improvement Project and account 557-1106-637.65-00-117047 contains sufficient funding to complete the project.
ATTACHMENTS
1. Bid Result