ADMINISTRATIVE COMMITTEE
6.	CONSIDER EXPENDITURE OF BUDGETED FUNDS FOR CONSTRUCTION OF PHASE 1 AQUIFER STORAGE AND RECORVERY PROJECT FACILITY BUILDING
Meeting Date:		February 12, 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: Pending
Committee Recommendation: The Administrative Committee reviewed this item on February 12, 2010 and recommended __________.
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 shown in Exhibit 6-A. The bids ranged from $469,000 (lowest) to $683,249 (highest). Subsequent to the bid opening, the District has received three bid protest letters. District staff and legal counsel are in the process of reviewing the bids and bid protests for compliance with the District’s requirements.

RECOMMENDATION: The Administrative Committee should review the summary discussion regarding the bidding process and provide direction for review by the full Board.

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. Subsequent to the January 27, 2010 bid opening, the District received three bid protest letters. Each is briefly summarized below.

Bid Protest 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.

Bid Protest 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.

Bid Protest 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.

IMPACT TO STAFF/RESOURCES: Funds for the construction of the Phase 1 ASR facility building have been included in the District’s Fiscal Year 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 any of the bids received on January 27, 2010. The amount which will need to be assigned to other Phase 1 ASR line items, including the contingency, will depend on the cost of the contract that is awarded for this project.

EXHIBIT

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

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