REPORT TO COUNCIL
SUBJECT
Title
Action on Rejection of All Bids for the Benicia Ranch Demolition Project Contract No. 18119
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure.
BACKGROUND
The City through Silicon Valley Power (SVP) owns approximately 2,050 acres of land in unincorporated Solano County, referred to as the Benicia Ranch Property. The Benicia Ranch Demolition Project Contract No. 18119 (“Project”) includes demolition of three structures, including a caretaker’s house, a detached garage, and a milk house, refurbishment of a well house, and relocation of the front vehicle access gate. These structures have reached the end of their life.
DISCUSSION
Pursuant to Santa Clara City Code Section 1310 (Contracts on public works), the City conducted a competitive Request for Bids (RFB) for this procurement requiring award to the lowest responsible bidder.
On March 13, 2023, the City published the RFB for f the Project using the City’s e-procurement system. On April 13, 2023, bids for the Project were opened at the City Clerk’s office. The City received two bids from OBS Engineering and Penkor Wrecking, with amounts of $534,185 and $622,786, respectively. The Bid Summary is included as Attachment 1.
Both bids exceeded the Engineer’s Estimate, with OBS Engineering exceeding it by 43% and Penkor Wrecking by 67%. After careful review, staff deemed both bids non-responsive for not meeting the requirements of the RFB. Since the non-responsive bids represent all the bids received, staff recommends rejecting all bids received.
Prior to readvertising the RFB, staff will evaluate the option of separating the scope of refurbishing the well house and access gates into a standalone package and repackaging the demolition aspects of the Project in order to obtain more competitive and favorable bids.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to section 15378(b)(5) of Title 14 of the California Code of Regulations in that it is an administrative activity that will not result in direct or indirect physical changes in the environment.
FISCAL IMPACT
None associated with the rejection of all bids.
COORDINATION
The report has been coordinated with the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Reject all bids received for the Benicia Ranch Demolition Project Contract No. 18119.
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Jōvan D. Grogan, City Manager
ATTACHMENTS
1. Bid Summary