To: Honorable Mayor and Members of City Council
From: Julie Lucido, Public Works Director
Prepared By: Ian Heid, Senior Civil Engineer
TITLE:
Title
Bid Rejection for Capital Improvement Project
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution rejecting all bids for the Capital Improvement Project - Sustainable Transportation Grant Project for Affordable Housing Phase 2 Project.
Body
DISCUSSION:
The Public Works Department advertised a construction contract for bid to complete improvements funded by a Sustainable Transportation Grant for traffic safety improvements. Only one bid was received, and the bid amount exceeded the engineer’s estimate and the allocated construction budget. Staff recommends the sole bid be rejected. The bid package would then be reviewed for potential cost savings and re-advertised for bid with additional outreach to qualified contractors.
Background
In 2019, the City was awarded funding from an Affordable Housing and Sustainable Communities (AHSC) grant in connection with the Manzanita Family Apartments project. The grant included a new traffic signal and pedestrian improvements in an amount not to exceed $1,100,000. A capital improvement project (ST21PW06) was established by Council action and in fiscal year 2022/2023 the budget was increased by $250,000.
The first phase was completed in 2021 with the construction of a new traffic signal at the intersection of Soscol Avenue/Old Soscol Way. The second phase includes pedestrian and bicycle crossing improvements along the Vine Trail between California Boulevard and Vallejo Street including the installation of five Rectangular Rapid Flashing Beacon (RRFB) systems; and crossing improvements along Pueblo Avenue between Crocker Street and Azalea Street including accessible curb ramps and an additional RRFB system.
The City contracted for the professional services of RSA+ to prepare the Phase 2 construction documents consisting of plans, specifications, and an engineer’s estimate of probable construction costs. The engineer’s estimate of construction costs for the Phase 2 project is $408,000.
Staff published an invitation to bid for the project during the month of January 2023. The City received one bid by February 28, 2023. The bid was as follows:
|
$ 526,301 |
Kerex Engineering Inc., Martinez, CA |
In review of the bid received and in comparison of the engineer’s estimated costs for various line items, staff determined that proposed costs for the work generally exceeded the estimate by a significant margin. In sum, the single bid received exceeds the engineer’s estimate by 29%.
Staff considered the benefit of recommending an additional fund allocation to allow award of the construction contract as bid, but ultimately determined that the proposed bid prices were too high for the work. Staff recommends that the current bid be rejected and that the project’s Phase 2 work be re-advertised. Prior to re-advertisement, staff will conduct a thorough review of the engineer’s estimate to seek value engineering opportunities and will conduct outreach to qualified vendors.
FINANCIAL IMPACTS:
There are no financial impacts if the bids are rejected.
CEQA:
The Public Works Director has determined that the Recommended Action described in this Agenda Report is not subject to CEQA, pursuant to CEQA Guidelines Section 15060(c).
DOCUMENTS ATTACHED:
ATCH 1 - Resolution
NOTIFICATION:
Kerex Engineering Inc., Martinez, CA