DATE: October 1, 2024
TO: Honorable Mayor and City Council
FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director Kevin Merrill, City Engineer
By: Ryan Huey, Assistant Engineer
SUBJECT: REJECT ALL BIDS RECEIVED FOR THE BALDWIN AVENUE
REHABILITATION IMPROVEMENTS, BALDWIN AVENUE AT LONGDEN
AVENUE TRAFFIC SIGNAL IMPROVEMENTS, AND TRAFFIC SIGNAL
FIBER OPTICS NETWORK EXTENSIONS PROJECT, AND DIRECT
STAFF TO REBID THE PROJECT
CEQA: Not a Project
Recommendation: Approve
SUMMARY
The subject project includes concrete street, curb ramp, and sidewalk improvements, traffic signal improvements, and fiber optic network extensions. It was originally planned to bid these three items as separate projects; however, due to the type of work, location, and design completion dates for each project, it was determined that it would be beneficial to bid the three projects as one single project. In the past, the bidding of a combined project has provided lower unit costs for all elements of work, providing cost savings to the City. Unfortunately, due to rising costs of materials and labor, this approach did not result in the anticipated savings.
The project was advertised for bids on July 30, 2024, and bids were opened on August 22, 2024. Two (2) bids were received and both bids were significantly higher than the budgeted amount. It is recommended that the City Council reject all bids received for the Baldwin Avenue Rehabilitation Improvements, Baldwin Avenue at Longden Avenue Traffic Signal Improvements, and Traffic Signal Fiber Optics Network Extensions Project, and direct staff to re-bid the project.
BACKGROUND
The combined project proposes the following work:
Reject Bids and Rebid Various Projects
October 1, 2024
• Concrete street, curb ramp, and sidewalk improvements on Baldwin Avenue from Live Oak Avenue to Camino Real Avenue.
• Traffic signal improvements at the intersection of Baldwin Avenue and Longden Avenue.
• Fiber optic network extensions on Las Tunas Drive from Baldwin Avenue to Santa Anita Avenue; and Baldwin Avenue from Live Oak Avenue to Las Tunas Drive.
A design contract was awarded to Kreuzer Consulting Group (“KCG”) to complete the design of the concrete street, curb ramp, and sidewalk improvements. All other design work, including traffic signal improvements and fiber optic network extensions, was completed by City staff. Design of the project began in 2021 and extended into 2022.
Following design work, the Baldwin Avenue Streetscape Improvement Project was prioritized, which included an overall enhancement of Baldwin Avenue from Camino Real Avenue to Huntington Drive. After further discussion and evaluation, it was determined that the Baldwin Avenue Streetscape Improvement Project would move forward first, and that it would not be efficient or advisable to complete both of these projects concurrently because of their proximity and impact. KCG was awarded the design contract and priority was re-directed to the Baldwin Avenue Streetscape Improvement Project, which placed the Baldwin Avenue Rehabilitation Improvements, Baldwin Avenue and Longden Avenue Traffic Signal Improvements, and Traffic Signal Fiber Optics Network Extensions Project, on hold. Once the Baldwin Avenue Streetscape Improvement Project was initiated, focus turned back to the current project.
DISCUSSION
A Notice Inviting Bids was published on July 30, 2024. On August 22, 2024, the City received two (2) bids, summarized below:
Bidder Location Bid Amount
Select Electric, Inc. Anaheim, CA $4,721,303.00
Elecnor Belco Electric, Inc. Chino, CA $4,121,360.60
All bids are well above the City’s budget, which may be, in part, due to the delays in design and advertisement of the project. However, this has become a more common problem with current bid processes, where the cost of materials significantly exceeds the estimates. The engineer’s estimate for the concrete street, curb ramp, and sidewalk improvements was $1,768,019, in which the low bid received was approximately $3,100,000. Also, the low bid received for the traffic signal improvements and fiber optic network extensions was approximately $1,030,000, which was well above the estimated amount of $750,000.
In analysis of the bid package, there are some items that can be removed and some items that can be adjusted to lower bid prices. Other cost-saving measures being discussed
Reject Bids and Rebid Various Projects
October 1, 2024
include self-procurement of certain materials, reducing the limits of the project, and selection of items that can be performed separately. As such, it is recommended that the project be reorganized and rebid at a later date.
ENVIRONMENTAL ANALYSIS
Rejecting the proposals does not constitute a project under the California Environmental Quality Act (“CEQA”), as it can be seen with certainty that it will have no impact on the environment.
FISCAL IMPACT
Funds in the amount of $2,250,000 have been budgeted in the Fiscal Years 2020-21 through 2024-25 Capital Improvement Programs, for this project. Bids received were considerably higher than the budgeted amount. Even with potential cost-saving measures, it is likely that an additional appropriation will be required after the rebid or re- structuring of work. The priority of the various components of the project will also be considered as a new project is scoped.
RECOMMENDATION
It is recommended that the City Council determine that this action does not constitute a project under CEQA; and reject all bids received for the Baldwin Avenue Rehabilitation Improvements, Baldwin Avenue at Longden Avenue Traffic Signal Improvements, and Traffic Signal Fiber Optics Network Extensions Project, and direct staff to rebid the Project.