ITEM 4.6
CITY MANAGER' S REPORT
NOVEMBER 14, 2022 CITY COUNCIL REGULAR MEETING
ITEM: REJECT BID FOR STRIPING SERVICES, CIP PS 22- 14
RECOMMENDATION: Adopt Resolution Rejecting Bid for Striping Services, CIP PS 22- 14
SUMMARY:
On June 2, 2022, City Council approved the creation of Capital Improvement Project CIP) GG 22- 14 Striping Services ( Project) to provide one- time and on- call services and prices for the installation of traffic striping and markings on City streets.
City staff prepared and distributed the plans and technical specifications for formal bid solicitation on July 6, 2022 in accordance with California Public Contract Code 20160 and the Lathrop Municipal Code 2. 36. 060.
A total of one ( 1) bid was received and opened by the City Clerk on July 26, 2022.
Based upon the review and evaluation of the bid, it appears that the scope of work selected by the City for installation of the subject services is too large for the project budget. Furthermore, the submittal of only one bid for the Project indicates poor bidding competition.
Therefore, staff requests City Council reject all bids, pursuant to Lathrop Municipal Code 2. 36. 060( E) and Public Contract Code ( PCC) 20166 and 22038. Following bid rejection, staff plans to reduce the scope of the project and re- solicit bids.
BACKGROUND:
The Project' s scope of work was comprised of two work types: defined work to be accomplished immediately upon contract execution and on- call work to be defined as needed and obtained at the unit prices submitted by the Contractor for on- call work.
Based upon the review and evaluation of the bid, it appears that the scope of work selected by the City for installation of the subject services is too large for the project budget. Furthermore, the submittal of only one bid for the Project indicates poor bidding competition. As a result, the Project' s contemplated entirety of traffic striping and markings cannot be accomplished under the existing budget or proposed contract.
Pursuant to PCC 20166 and 22038, a public agency may reject all bids for a project no less than two ( 2) days after notifying the low bidder of such intent.
CITY MANAGER' S REPORT PAGE 2
NOVEMBER 14, 2022 CITY COUNCIL REGULAR MEETING
REJECT BID FOR STRIPING SERVICES, CIP PS 22- 14
City staff notified the bidder via US mail on November 4, 2022 of its intent to recommend City Council reject all bids for the project at the City Council Regular Meeting of November 14, 2022.
Therefore, staff requests City Council to reject all bids for CIP PS 22- 14 Striping Services, pursuant to Lathrop Municipal Code 2. 36. 060( E) and PCC 20166 and 22038.
Following bid rejection, staff plans to reduce the scope of the project and re- solicit bids.
REASON FOR RECOMMENDATION:
The scope of work selected by the City for striping services is too large for the project budget. Furthermore, the submittal of only one bid for the Project indicates poor bidding competition. Both factors indicate that the City could accomplish the majority or all of the contemplated work within the budget by reducing the scope or waiting until the material supply chain has stabilized.
FISCAL IMPACT:
There is no fiscal impact associated with the requested action.
ATTACHMENTS:
A. Resolution Rejecting Bid for CIP PS 22- 14, Striping Services CITY MANAGER' S REPORT PAGE 3
NOVEMBER 14, 2022 CITY COUNCIL REGULAR MEETING
RE7ECT BID FOR STRIPING SERVICES, CIP PS 22- 14
APPROVALS:
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Steven Hollenbeak Date
Assistant Engineer
Ken Reed Date
Senior Construction Manager
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Cari James Date
Director of Finance
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Michael K Date
Assistant City Manager
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Salvador Navarrete Date
City Attorney
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St en J. Salvatore Date
City Manager
RESOLUTION NO. 22-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP REJECTING BID FOR STRIPING SERVICES, CIP PS 22- 14
WHEREAS, on May 9, 2021, City Council approved the creation of Capital Improvement Project ( CIP) PS 22- 14, Striping Services to provide one- time and oncall services and prices for the installation of traffic striping and markings on City streets; and
WHEREAS, City staff prepared and distributed the plans and technical specifications for formal bid solicitation on July 6, 2022 in accordance with California Public Contract Code 20160 and the Lathrop Municipal Code Section 2. 36. 060; and WHEREAS, a total of one ( 1) bid was received and opened by the City Clerk on July 26, 2022; and
WHEREAS, it appears to staff that the scope of work selected by the City is too large for the project budget; and
WHEREAS, the minimum quantity of bids received indicates poor bidding competition; and
WHEREAS, pursuant to Lathrop Municipal Code 2. 36. 060( E) and Public Contract Code Sections 20166 and 22038, a public agency may reject all bids for a project no less than two ( 2) days after notifying the apparent low bidder of such intent; and
WHEREAS, City staff provided notice to said bidder via US mail on November 4, 2022 of its intent to recommend City Council reject the bid for the subject project; and
WHEREAS, staff requests City Council reject the bid for the subject project.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop hereby reject the bid for CIP PS 22- 14, Striping Services.
The foregoing resolution was passed and adopted this 14th day of November 2022, by the following vote of the City Council, to wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS T FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney