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
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• 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
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March 19, 2024
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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.