HomeMy WebLinkAboutE-4.1. Reject Bids for W-265BCONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: MANNY ROBLEDO, DIRECTOR OF UTILITIES
DATE: MARCH 22, 2021
SUBJECT: REJECT ALL BIDS FOR PROJECT W-265B CYPRESS STREET WATER
MAIN REPLACEMENT BETWEEN LARK ELLEN AVENUE AND
VINCENT AVENUE
BACKGROUND:
On January 25, 2021, the Azusa Utility Board authorized staff to solicit formal bids for Project
W-265B Cypress Street Water Main Replacement between Lark Ellen Avenue and Vincent
Avenue. Thirteen bids were received and opened by the Azusa City Clerk Office on February 25,
2021, with the lowest bid received totaling $3,231,746.10. After careful consideration of the
Water Fund’s cash reserves and the estimated revenues for this fiscal year, staff recommends the
Utility Board to reject all bids and defer award of this project to a later date.
RECOMMENDATION:
Staff recommends the Utility Board take the following action:
1)Reject all bids for Project No. W-265B Water Main Replacement between Lark Ellen
Avenue and Vincent Avenue.
ANALYSIS:
On January 25, 2021, the Azusa Utility Board authorized staff to solicit bids for Project W-265B
Cypress Street Water Main Replacement between Lark Ellen Avenue and Vincent Avenue. The
project proposed to replace approximately 7,100 linear feet of distribution water main and 2,100
linear feet of transmission main with new ductile iron class 350 pipeline, fire hydrants, valves,
and services. Thirteen bids were received and opened by the Azusa City Clerk Office on
February 25, 2021, with the lowest bid received totaling $3,231,746.10.
E-4Approved
Utility Board
3/22/21
Reject Bids for W-265B
March 22, 2021
Page 2
Water Division Capital Improvement Projects (“CIP”) are funded through unrestricted cash
reserves in Water Fund 32. The City of Azusa Utility Board adopted, via resolution, a reserve
policy for the Water Fund in July 2008, which was subsequently updated in 2014. The reserve
policy requires a minimum target balance of $19.6 million dollars, which includes: 90 days of
operating cash flows, 4 years of capital project expenditures, and $5 million for contingencies.
Current approved Water Division Capital Outlay and CIP Project expenditures total $7,220,639
for the current fiscal year. With the award of CIP W-265B for $3,231,746.10, reserve levels
would be reduced near the minimum target balance. Having completed the design of Project W-
265B, staff proposes to defer construction of this project until such a time that reserve levels
have recovered to a sustainable level.
FISCAL IMPACT:
There is no fiscal impact related to the proposed action.
Prepared by: Reviewed and Approved:
Jared Macias Manny Robledo
Assistant Director of Utilities – Water Operations Director of Utilities
Reviewed and Approved:
Sergio Gonzalez
City Manager