2001 AGN NOV 06 I17 - Laserfiche WebLink

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Item #17 CITY OF COLTON AGENDA REPORT FOR THE COLTON UTILITY AUTHORITY MEETING OF NOVEMBER 6, 2001 TO: HONORABLE CHAIRPERSON AND UTILITY AUTHORITY MEMBERS FROM: KATHY A. KIVLEY, ACTING WATER AND WASTEWATER DIRECTO SUBJECT: REJECTION OF ALL BIDS FOR THE SOUTHWEST 44 WATER AND SEWER INFRASTRUCTURE PROJECT, PHASE I DATE: OCTOBER 30, 2001 BACKGROUND: In 1991 the property owners located in the area now known as the Southwest 44 (East of Riverside Avenue, west of La Loma Hills, south of the Santa Ana River, and north of Placentia Lane) agreed to annex into the City of Colton's corporate limits. A condition of annexation was for the City to provide water, sewer and street improvements. The San Bernardino County Local Agency Formation Committee (Case No. 2660) approved the area for annexation on November 19, 1991. The Southwest 44 water and sewer improvements were included in the recently adopted Water and Wastewater Master Plans. On October 19, 1999 Council approved Krieger and Stewart, Inc., to design the water and sewer improvements for completion in two phases. DISCUSSION: On September 17, 2001, staff conducted a bid opening process for the water and sewer line improvements. Subsequent to the bid opening, staff learned that several key assumptions underlying the project were not completed and/or have changed since the bid opening process was completed. These include the following: Portions of the right-of-way required for the project were not deeded or acquired by the City; and There is the potential that several large residential developments may be constructed and/or entitled. These projects may have a significant impact on the assumptions upon which this project is based. These conditions caused staff to re-evaluate all of the assumptions under which the proposed bid documents were developed. In addition, staff learned that several administrative components of the project, including compliance with the California Environmental Quality Act (CEQA), were not fully or accurately evaluated given that the project involves environmental documentation from other local governmental entities (i.e. City of Riverside). For these reasons, staff recommends that all bids be rejected. Staff will immediately begin the process of re -assessing the revised project components and their associated environmental issues so that the project can move forward without further delays. CONTRACT AWARD OR REJECTION DEADLINE: Per the bid specifications, the City of Colton must award or reject the bids within 60 days of bid opening. Therefore, action on this item is required at this time.