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HomeMy WebLinkAboutItem 10j - Reject Bids for Baldwin Ave Streetscape Improvements Project DATE: March 19, 2024 TO: Honorable Mayor and City Council FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director Kevin Merril, City Engineer By: Johnathan Doojphibulpol, Associate Civil Engineer SUBJECT: REJECT ALL BIDS RECEIVED FOR THE BALDWIN AVENUE STREETSCAPE IMPROVEMENT PROJECT AND DIRECT STAFF TO RE-BID THE PROJECT CEQA: Not a Project Recommendation: Approve SUMMARY On June 7, 2022, the City Council discussed adding a project to the Capital Improvement Program (“CIP”) to improve the Baldwin Avenue parkways between Huntington Drive and Camino Real Avenue. At the October 18, 2022, City Council Meeting, the City Council adopted Resolution No. 7462, adding the Baldwin Avenue Streetscape Improvement Project to the Fiscal Year 2022-23 CIP Budget and authorized an appropriation of $2,100,000. An additional $900,000 was budgeted in the Fiscal Year 2023-24 CIP Budget for the rehabilitation of Baldwin Avenue between the same boundaries. The project was advertised for bids and bids were opened in February 2024. All bids were significantly higher than the budget and the low bid included a significant clerical error. It is recommended that the City Council reject all bids received for the Baldwin Avenue Streetscape Improvement Project and direct staff to re-bid the project with changes to reduce costs. Even with potential cost-saving measures, it is likely that an additional appropriation will be required after re-bid, or the scope will need to be further adjusted. BACKGROUND At the 2022-23 Fiscal Year Budget Adoption Hearing on June 7, 2022, the City Council discussed adding a Baldwin Avenue Streetscape Improvement Project to the budget. At that meeting, the City Council requested a cost estimate for the following improvements: • Remove and replace all the trees; • Remove and replace the damaged sidewalks; Baldwin Avenue Streetscape Improvement Project March 19, 2024 Page 2 of 3 • Install electrical lines in the sidewalk to light the trees; • Add benches; • Add trash receptacles; • Add bulb-outs similar to those on Huntington Drive; and • Add decorative crosswalks at intersections. A full evaluation was conducted of the existing conditions along Baldwin Avenue and a scope of work was assembled to meet the improvement plan identified above. A comprehensive cost estimate was presented on September 6, 2022. The City Council chose to move forward with all improvements except for the bulb-outs and decorative crosswalks for a total estimate of $2,100,000. At the October 18, 2022, City Council Meeting, the City Council adopted Resolution No. 7462 adding the Baldwin Avenue Streetscape Improvement Project to the Fiscal Year 2022-23 CIP Budget and authorized an appropriation in the amount of $2,100,000, offset by a reduction of $500,000 in Measure M funds and a 1,600,000 reduction in Measure R funds. As part of the Fiscal Year 2023-24 CIP Budget, $900,000 of Prop C funds were budgeted for the Arterial Rehabilitation Project – Baldwin Avenue from Huntington Drive to Camino Real Avenue. This part of the project will rehabilitate Baldwin Avenue due to the expected impact of construction from the streetscape project. This provides a total budget of $3,000,000. A design contract was awarded to Kreuzer Consulting Group (“KCG”) through the City’s Engineering Design Services Professional Service Agreement, in the amount of $192,400 for the design and leaving $2,807,600 for construction. Design plans were completed in January 2024. DISCUSSION A Notice Inviting Bids was published in accordance with City Council Resolution No. 7483 on February 14, 2024. One addendum was published on February 21, 2024, clarifying conflicting notes. On February 29, 2024, the City received six (6) bids, summarized below: Bidder Location Bid Amount Hardy & Harper, Inc. Lake Forest, CA $4,846,275.06 Vido Samarzich, Inc. Rancho Cucamonga, CA $5,378,334.80 PALP, Inc. dba Excel Paving Long Beach, CA $5,548,768.84 Los Angeles Engineering, Inc. Covina, CA $5,875,000.00 Toro Enterprises Inc. Oxnard, CA $6,167,500.88 All American Asphalt Corona, CA $6,697,188.40 Baldwin Avenue Streetscape Improvement Project March 19, 2024 Page 3 of 3 On March 3, 2024, the Development Services Department received a withdrawal letter from Hardy & Harper, Inc. stating that, due to a clerical error, they would have to withdraw their bid pursuant to Public Contract Code 5100. A correction to the error would have raised their bid to $5,278,695.06. All bids are well above the City’s budget. 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 include self-procurement of certain materials and items that can be performed separately. As a result, it is recommended that all current bids be rejected and the project re-bid with adjustments. ENVIRONMENTAL ANALYSIS Rejecting this proposal 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 $3,000,000 have been budgeted in the Fiscal Year 2022-23 and 2023-24 Capital Improvement Programs for this project. The bids received were considerably higher than the budgeted amount, and even with potential cost-saving measures, it is likely that an additional appropriation will be required after re-bid. RECOMMENDATION It is recommended that the City Council determine that this action does not constitute a project under the California Environmental Quality Act (“CEQA”); reject all bids received for the Baldwin Avenue Streetscape Improvement Project, and direct staff to re-bid the project.