CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: January 17, 2024
To: Honorable Mayor and City Council Members
From: Charles A. Montoya, City Manager;
Lynn Merrill, Interim Director of Public Works, Operations and Maintenance
Department: Public Works
Subject: Rejecting Construction Bids for the Clean California Local Grant Program (All Wards)
Recommendation:
Adopt Resolution No. 2024-021 of the Mayor and City Council of the City of San Bernardino, California, Rejecting Construction Bids for the Clean California Local Grant Program for the 4th Street Alley Beautification project.
Executive Summary
It is recommended that the Mayor and City Council adopt a resolution rejecting the bid from Diamond Construction and Design in the amount of $979,460.75, as the bid exceeds the amount of grant funding available.
Background
The Clean California Local Grant Program (“Program”) was established under Assembly Bill 149 (SEC. 16) and codified under Streets and Highway Code §91.41.
The goal of the competitive statewide program is to incentive the beautification and clean-up of local streets and roads, tribal lands, parks, pathways, transit centers, and to enhance the appearance of public spaces. The program is an element of the $1.1 billion-dollar Clean California initiative that takes direct aim at the time and resources expended by Caltrans and its partners to collect, recycle, and dispose of litter and hazardous waste.
The Clean California Local Grant Program, administered by the California Department of Transportation (Caltrans), will provide approximately $296 million as part of a two-year program to beautify and improve streets, tribal lands, parks, pathways, and transit centers to improve spaces for walking and recreation with all funds to be expended by June 30, 2024. Each grant shall not exceed five million dollars. There is no minimum award. Applicants must be local or regional public agencies, transit agencies, or tribal governments. It was determined that the City was able to comply with all the grant conditions and was awarded funding in the amount of $722,772.00. The acceptance of the grant was approved by the Mayor and the City Council on August 3, 2022.
Discussion
The 4th Street Beautification and landscape project was advertised for public bidding on November 21, 2023, on Planet Bids.
Sealed bids were received and opened on December 12, 2023. The City received one bid as follows:
Bidder City Base Bid
Diamond Construction
& Design
Corona, CA $979,460.75
The City has reviewed the bid package and confirmed that Diamond Construction and Design from the City of LA Habra, California, is the lowest responsible and responsive bidder, with a total bid amount of $979,460.75. The lowest bid is significantly above the Engineer’s overall estimate of $433,300.00. The following is a breakdown of the construction bid, design and art mural design costs for the project:
Construction Bid $979,460.75
Design Cost $99,940.00
Art mural Design $137,000.00
Total Project Cost $1,216,400.75
The grant awarded funds in the amount of $722,772.00 are not sufficient to cover the construction bid resulting in a shortfall of $493,628.75. Staff contacted the granting authority regarding the shortfall but were informed additional funds are unavailable. It was suggested that the City review the scope of work and attempt to reduce elements to bring the cost of the project more in line with the available funding.
Therefore, staff recommends that the City rejects all bids submitted for the subject project at this time, and direct staff to revise the bid package and readvertise the project.
In addition, the Public Code Section 20166 states that the Mayor and City Council have the authority to reject all bids. The specification reiterates the same authority.
Staff will reevaluate the project and collaborate with the granting agency to develop an acceptable reduction in the scope of work that falls within the awarded budget.
Staff will advertise once a strategy is reached and the granting agency is in full agreement with the revised scope. Time is of the essence since the funds will expire in June 2024.
2021-2025 Strategic Targets and Goals
This project is consistent with Key Target No.1e: Improved Operational & Financial Capacity - Minimize risk and litigation exposure. Approval of this resolution will result in minimizing appeals by the perspective bidders.
Fiscal Impact
There is no fiscal impact related to the adoption of this resolution since it is solely funded by the Clean California Local Grant Program.
Conclusion
Adopt Resolution No. 2024-021 of the Mayor and City Council of the City of San Bernardino, California, Rejecting Construction Bids for the Clean California Local Grant Program for the 4th Street Alley Beautification project.
Attachments
Attachment 1-Resolution No.2024-021
Attachment 2-Bid Proposal
Ward:
First Ward
Synopsis of Previous Council Actions:
January 19, 2022 Mayor and City Council of San Bernardino, California adopt Resolution No. 2022-07, approving submittal of application for Clean California Local Grant Program.
August 3, 2022 Mayor and City Council of San Bernardino, California adopt Resolution No. 2022-174, accepting funds from the Clean California Local Grant Program.