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 .
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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
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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.
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(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.
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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.
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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.
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