City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-00724 4/9/2024 Consent Item 6.
Rejection of Bids for the Dixieanne Neighborhood Clean and Green Alleys Project (T15235100) File ID: 2024-00724
Location: District 2, Represented by Councilmember Thao Recommendation: Pass a Motion rejecting bids for the Dixieanne Neighborhood Clean and Green Alleys Project (T15235100).
Contact: Stephanie Saiz, Assistant Civil Engineer (916) 808-6808, [email protected]; Philip Vulliet, Senior Engineer, (916) 808-5092, [email protected]; Judy Matsui-Drury, Supervising Engineer, (916) 808-7610, [email protected]; Ofelia Avalos, Engineering Manager, (916) 808-5054, [email protected], Department of Public Works Presenter: None
Attachments:
1-Description/Analysis
Description/Analysis
Issue Detail: The Dixieanne Neighborhood Clean and Green Alleys Project was advertised on February 6, 2024, and one bid was received on February 28, 2024, for $4,199,910. The bid received was substantially higher than expected at 14% over the Engineer’s Estimate of $3,704,000.
Rejecting the one bid will allow City staff to refine the project design and materials to either negotiate contract cost with available contractors or re-advertise the project in a more competitive bid environment.
Policy Considerations: The action requested herein is consistent with City API 4002, Section 8.5(b), which requires that rejection of bids for contracts of $250,000 or more must be approved by the City Council.
Economic Impacts: None.
Environmental Considerations:
File ID: 2024-00724 4/9/2024 Consent Item 6.
California Environmental Quality Act: The recommendations in this report involve the administrative activity of rejecting a bid and are exempt from CEQA review pursuant to CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment.
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: Only one bid was received for the project. The bid amount of $4,199,910 was substantially higher than the budgeted estimate. City staff performed outreach to the contractors to determine whether there were specific issues with the bid requirements or other factors which may have caused the bid pricing to exceed the project budget. The responses received indicated that the project working conditions necessitate more extensive mobilization and resources to secure the construction area requiring more time and costs to meet the schedule. Staff recommends rejecting the bid and entering negotiations to revise the amount of working days for a more suitable project cost, with the second option of re-advertise the project in a more competitive bid environment.
City staff is coordinating with Caltrans to request a 6-month time extension from the original June 30, 2024, construction deadline. This extension is needed to facilitate staff’s initial recommendation to review bids, renegotiate, and increase the working days, ultimately ensuring the feasibility of the project.
Financial Considerations: The estimated total cost for Dixieanne Neighborhood Clean and Green Alleys Project (T15235100) was $5.5 million. Based on the bid received, the estimated total project construction cost with the apparent low bid is $6 million.
It is recommended that this bid be rejected, and the procurement be advanced by negotiating bid pricing with available contractors. Staff does not recommend allocating additional funds in the amount of $500,000 (General Fund, Fund 1001) to the Dixieanne Neighborhood Clean and Green Alleys Project (T15235100) to cover the difference, at this time. If re-negotiation is not possible, the other option is to re-advertise when the bidding environment will be more favorable.
Local Business Enterprise (LBE): Not applicable.