ITEM:		CONSENT CALENDAR
7.	CONSIDER EXPENDITURE OF BUDGETED FUNDS FOR CONSTRUCTION OF PHASE 1 AQUIFER STORAGE AND RECOVERY PROJECT FACILITY BUILDING
Meeting Date:			February 25, 2010	Budgeted:	Yes
From:			Darby Fuerst,	Program/	Water Supply Projects
			General Manager	Line Item No.:	1-2-1 A 1
Prepared By:			Joe Oliver	Cost Estimate:	$469,000 (lowest bid) $683,249 (highest bid)
General Counsel Review: Yes
Committee Recommendation: The Administrative Committee reviewed this item on February 12, 2010 and recommended approval.
CEQA Compliance: N/A

SUMMARY: Staff is seeking Board direction regarding authorizing a contract to construct the Phase 1 Aquifer Storage and Recovery (ASR) Facility building at the Phase 1 site at 1910 General Jim Moore Boulevard, Seaside. This 1,770 square feet structure will house the permanent electrical, process control and water treatment equipment for the two ASR wells at the Phase 1 site. This new building has been in the planning and design phase over the last several years, and went through the City of Seaside’s architectural design and building department review in 2009. A public bid opening was held on January 27, 2010 and six bids were received, as provided in Exhibit 7-A. The bids ranged from $469,000 (lowest) to $683,249 (highest). Subsequent to the bid opening, the District received four bid protest letters. District staff has reviewed the bids and legal counsel has prepared a bid protest analysis, which is included as Exhibit 7-B. The recommendation below is based on the analysis by legal counsel and discussion of the bid process at the February 12, 2010 Administrative Committee meeting. That analysis concluded that the District may waive the non-substantive irregularities in the low bid from Thayer Construction, Inc., and award a contract to this firm for construction of the Phase 1 ASR Facility building.

RECOMMENDATION: The Board should approve the recommendation to award a contract for construction of the Phase 1 ASR Facility building to Thayer Construction, Inc. of Monterey, for a not-to-exceed amount of $469,000. The Administrative Committee reviewed this item at their February 12, 2010 meeting and recommended approval. A notice of award and contract will be prepared if this item is adopted along with the Consent Calendar.

BACKGROUND: The Phase 1 ASR Project is designed to allow for injection of up to 2,426 acre-feet per year (AFY) of water diverted from the California American Water (Cal-Am) supply system during excess Carmel River flows in winter, for storage in the Seaside Groundwater Basin, and later recovery for delivery to Cal-Am customers during the high-demand dry season. The estimated average annual yield of the Phase 1 ASR Project is 920 AFY. The Phase 1 ASR project includes a permanent, on-site facility building, also referred to as a “chemical/electrical building”. The plans for this building were completed in 2009, and have been approved by the City of Seaside Architectural Review Board. Issuance of the building permits for the new structure is pending selection of the building’s contractor.

A notice inviting sealed bids for the building project was originally advertised in late December 2009, with a January 15, 2010 due date. However, several significant errors in the project description were made by one of the construction industry oversight firms that provide web postings for contractors. This led to much confusion and misinformation regarding the project. Subsequently, the District decided to re-advertise the notice with a mandatory on-site, pre-bid meeting on January 12, 2010, and a revised bid opening date of January 27, 2010, at which six bids were received. Between the bid opening and February 11, 2010, the District received four bid protest letters. These bid protest documents are available on the District’s website at http://www.mpwmd.dst.ca.us/asd/rfpbids/bids/SantaMargaritaASR/SantaMargaritaASR.htm. Each bid protest is briefly summarized below.

From Avila Construction Company: This protest asserts that of the three lowest bids received, only the Avila Construction Company bid complies with all the specified requirements.

From United Brotherhood of Carpenters and Joiners: This protest asserts that the two lowest bids, Thayer Construction Inc. and DMC Construction Inc., do not comply with all requirements and should be rejected.

From Ottone, Leach, Olsen & Ray: This protest was submitted on behalf of Avila Construction Company, and re-iterates the assertions in the bid protest letter from Avila Construction, i.e., that the bids from Thayer and DMC Construction are non-responsive and should be rejected.

From BCI Builders, Inc.: This protest asserts that the other five bids were not responsive and should be rejected in favor of the bid from this firm.

The bids and bid protests were reviewed in some detail at the February 12, 2010 Administrative Committee meeting. After discussion, it was concluded that there is not sufficient cause to reject one or all bids and re-advertise a bid notice for this project. The Administrative Committee concurred with the conclusion from District legal counsel that the non-substantive irregularities in the low bid can be waived, and the contract can be awarded to Thayer Construction, Inc. of Monterey.

IMPACT TO STAFF/RESOURCES: Funds for the construction of the Phase 1 ASR facility building have been included in the District’s Fiscal Year (FY) 2009-10 budget (Water Supply Projects, Line Items under 1-2-1 A 1). The amount specifically reserved for the building is $320,000, which is not sufficient for the low bid received on January 27, 2010. The remaining amount ($149,000) will be assigned to the Phase 1 ASR contingency line item of the FY 2009-10 budget.

EXHIBITS

7-A Summary of 1/27/2010 Bid Opening for Santa Margarita ASR Facility Building

7-B Analysis of Bid Protest from DeLay & Laredo, District Legal Counsel

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