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HomeMy WebLinkAboutMinutes 1977-09-22j..~ DISTRICTS NOS.1,2,3,5,6,7 AND 11 MINUTES OF THE ADJOURNED REGULAR MEETING September 22,1977 5:30 P.M 10844 Ellis Avenue Fountain Valley,California Pursuant to adjournment of the regular meeting held September 14,1977,the Boards of Directors of County Sanitation Districts Nos.1,2,3,5,6,7 and 11 of OrangeCounty,California,met in an adjourned regular meeting at the above hour and date,in the Districts’offices. The Chairman called the meeting to order at 5:30 p.m.Following the Pledge of Allegiance and invocation,the roll was called,and the Secretary reported a quorum present for each District’s Board. ROLL CALL DISTRICT NO.1 Directors present:James Sharp (Chairman),Philip Anthony, Vernon Evans and Kerm Rima Directors absent:None DISTRICT NO.2 Directors present:Henry Wedaa (Chairman),Don Smith,Thomas Riley,Donald Fox,John Garthe,Donald Holt, Jr.,Bob Perry,Earl Roget,Donald Roth,George Scott,Donald Winn and Frances Wood Directors absent:None DISTRICT NO.3 Directors present:Bernie Svalstad (Chairman),Donald Hudson, Sam Cooper,Bob Perry,John Garthe,~Russell Gray,Henry Frese,Don Griffin,Frank Marshott, Richard Olson,.Donald Roth,Laurence Schmit, Charles Stevens,Jr.,Charles Sylvia,I-Iarriett Wieder and Duane Winters Directors absent:None DISTRICT NO.S Directors present:Don Mclnnis (Chairman),Paul Ryckoff and Milan Dostal Directors absent:None DISTRICT NO.6 Directors present: . Kerm Rima (Chairman),Paul Ryckoff and Philip Anthony Directors absent:None . 1,2,3,5,6,7 and 11 1 9/22/77 DISTRICT NO.7 Directors present:Pete Barrett (Chairman),Bill Vardoulis, Thomas Riley,Vernon Evans,Francis Glockner, Don Saltarelli and Don Smith Directors absent:None DISTRICT NO.11 Directors present:Ron Pattinson (Chairman),Ron Sheñkman and Laurence Schmit Directors absent:None *****************• Review of procedures relative The Joint Chairman announced that this was to consideration of bid pro the time and place previously fixed by the test of Pentech/Houdaille re Boards to hear the bid protest by Pentech proposed award of contract~Division,Houdaille Industries,Inc.(Pentech/ for Job No.P2-23-2 and Houdaille)re the proposed award of contract receive and file relevant for Division 1 -Oxygen Generation and documents Storage Facilities and Division 2 -Oxygen Dissolution Facilities for 75 MCD Improved Treatment at Plant No.2,Job No.P2-23-2,to Catayltic,Inc.,second low bidder,in the amount of $8,273,000.00,and rejection of the low bid of Pentech/Houdaille as rionresponsive.In this regard,Chairman Saltarelli advised Directors that,pursuant to federal regulations,the Environmental Protection Agency (EPA)has the authority to modify or setaside any decision of the Boards of Directors with regard to the bid protest,in the event said decision is appealed by the protestant. The General Counsel then briefly summarized the procedural requirements relative to consideration of the bid protest.Because the project is par tially funded by EPA,any protest is subject to federal regulation:s.The Districts are in compliance with the regulations and the hearing is in further accord with said requirements.The protestant has been adyised of the procedures to be followed and will be afforded the opportunity to present their position to the Boards during the hearing.Mr.Woodruff also reported that,in accordance with the federal regulations,the Districts’legal counsel is required to provide an opinion relative to the bid protest,addressing each of the grounds itemized in said protest.lie has prepared such an opinion to be received and filed by the Board,which said opinion is included with the agenda material. It was then moved,seconded,and duly carried: That the following documents be received and ordered filed: (1)Letter from State Water Resources Control Board,dated April 6, 1976,giving concept approval for the construction of sajd project. (2)Letter from State Water Resources Control Board,dated March 16, 1977,approving plans and specifications for Job No.P2-23-2, and letter approving Phase I Value Engineering Report. —2- 1,2,3,5,6,7 and 11 ‘~9/22/77 (3)Resolution No.77-59,approving plans and specifications for Job No.P2-23-2,adopted by the Boards of Directors on May 11,1977. (4)Memorandum on Conference between Pentech/Houdaille and John Carollo Engineers/Greeley ~Hansen,dated August 1,1977. (5)Bid tabulation and analysis by John Carollo Engineers/Greeley ~Hansen,Districts’consulting design engineer. (6)Memorandum from General Counsel,dated August 4,1977,concern ing the validity of bid proposals and award to Catalytic,Inc. as the lowest responsible bidder. (7)Letter from State Water Resources Control Board,dated August 31, 1977,approving award to Catalytic,Inc. (8)Letter/report of Ray E.Lewis,Chief Engineer,dated September 8, 1977,to protesting party and other addressees in.response to protest. (9)Letter from Troy E,Maim,Attorneys at Law,dated September 14, 1977,on behalf of Pentech/Houdaille re bid protest. (10)Notice of General Counsel,dated September 15,1977,re bid protest hearing (11)Report of John Carollo Engineers/Greeley ~Hansen,Districts’ consulting design engineers,dated September 19,1977,re compar ison of system specified and bid by Catalytic,Inc.,and alter nate system bid by Pentech/Houdaille. (12)Correspondence and written material received from Pentech/ Houdaille: (a)Letter dated September 16,1977,re extension of period for acceptance of bid. (b)Letter dated September 20,1977,re bid protest. (c)“A Technical Report on the Pentox TM Modified Pure Oxygen System,dated July 18,1977. (13)Legal opinion of General Counsel,dated September 22,1977,re bid protest. Consideration of motion to It was movedand seconded that following continue Job No.P2-25-2 the scheduled hearing testimony,said bid protest hearing following hearing on the bid protest of Pentech/ scheduled testimony Houdaille re proposed award of contract for Division 1 -Oxygen Generation and Storage Facilities and Division 2 -Oxygen Dissolution Facilities for 75 MGD Improved Treatment at Plant No.2,Job P2-23-2,to Catayltic,Inc.,be continued to a later adjourned meeting of the Boards of Directors to provide Directors more time to review the information presented to the Boards. -3— 1,2,3,5,6,7 and 11 9/22/77 The Boards then entered into a general discussion regarding the motion during ~ which the General Counsel reviewed the time constraints relative to the award of a contract for the project. After a call for the question a voice vote was taken,following which the Joint Chairman announced that the motion had failed. The Maker of the motion then requested a roll call vote.The vote was polled and the Secretary reported that said motion had failed,each District voting against the motion. Hearing of bid protest The Joint Chairman then declared the hearing re proposed award of of the bid protest by Pentech Division, Job No.P2-23-2 Houdaille Industries,Inc.,re proposed award of contract for Division 1 Oxygen Generation and Storage Facilities for 75 MGD Improved Treatment at~Plant No.2, Jqb No.P2-23-2,to Catalytic,Inc.,the second low bidder,in the amount of $8,273,000.00,and rejection of the low bid of Pentech Division,Houdaille Industries,Inc.,as nonresponsive,open at 5:55 p.m. The Chair then recognized Elmer Ballotti of John Carollo Engineers/Greeley ~Hansen,Districts’consulting design engineer on the project,who reported on the engineer’s findings that the bid documents and proposal submitted by Pentech/Houdaille for Job No.P2-23-2 are ~ionresponsive.Mr.Ballotti provided the Directors with an overview of the facilities specified and the alternate proposal of Pentech/Houdaille which does not comply with the ~plans and specifications approved by the Boards of Directors,the State Water Resources Control Board and the Environmental Protection Agency.He also reviewed the preliminary analysis and value engineering work which had been performed prior to completion of the plans and specifications to determine the best system for the project.Basically,the Districts’ specifications call for a pure oxygen system,whereas Pentech/Houdáille bid an air system.It was also pointed Out that the Pentech/Houdaille process, which included only oxygen dissolution facilities,has not been installed, tested or operated anywhere as required by EPA for acceptability. The Chair then recognized Mr.Philip Lee,Attorney at Law,Mikkel Mandt, Jim Clark and Lou Giordano;each of whom addressed the Boards relative to the Pentech/Houdaille process and their alternate bid for Division :1 - Oxygen Generation and Storage Facilities and Division 2 -Oxygen Dissolution Facilities for 75MGD Improved Treatment at Plant No.2,Job No.P2-23-2. Following the presentation,the Boards entered into a lengthy deliberation of the respective systems bid and the protest of Pentech/Houdaille during which Directors sought further information from the Districts’engineers,legal counsel and representatives of Pentech/Houdaille concerning the rel~iability and state of the art of said systems,and the procedures followed b’.y Pentech/ Houdaille in submitting their protest.The following salient points were made: An extensive engineering analysis was performed prior to selection of the pure oxygen system set forth in the,plans and specifications. Said pure oxygen system proved to be the most cost effective approach and is,in fact,a tried and tested system in operation in,other faci lities throughout the country. -4— 1,2,3,5,6,7 and 11 9/22/77 The system proposed by Pentech/I-Ioudaille is presently a theoretical system only and has not been tested in a pilot project or scale model or placed into operation anywhere.Further,the Pentech/Houdaille proposal contains a disclaimer for supp].ying any equipment provided under the plans and specifications not specifically required for their process. The General Counsel has advised that,as a matter of law,the bid of Pentech/Floudaille is nonresponsive and has recommended that the protest filed by Pentech/Houdaille be rejected and the request to award the bid to Pentech/Houdaille be denied for the reasons set forth in his legal opinion dated September 22,1977. Following further discussions,during which it was noted for the record that the protestant had been granted more than one hour to present the oral bid protest,the Chairman declared the hearing closed at 7:04 p.m. Awarding contract for Division 1 -Oxygen Gener ation and Storage Facilities and Division 2 -Oxygen Dissolution Facilities for 75 MCD Improved Treatment at Plant No.2.Job No. P2-23-2 Adj ournment ______________________________ Following further discussion it was then ___________________________ moved,seconded,and duly carried by roll call vote: __________________________— That the Boards of Directors adopt Resolution ___________________________ No.77-122 to receive and file bid tabulation and recommendation and awarding contract for Division 1 -Oxygen Storage and Generation Facilities and Division 2 -Dissolution Facilities for 75 MCD Improved Treatment at Plant No.2,Job No.P2-23-2, to Catalytic,Inc.,the second low bidder,in the amount of $8,273,000.00, and making a determination of protest.Certified copy of this resolution is attached hereto and made a.part of these minutes. Moved,seconded,and duly carried: That this meeting of the Boards of Directors of County Sanitation Districts Nos.1,2,3,5,6,7 and 11 be adjourned.The Chairman then declared the meeting so adjourned at 7:17 p.m.,September 22,1977. ~yit~strictsNos.1 -.5-