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HomeMy WebLinkAboutItem 11l - Reject Bids for Downtown Lighting Improvement Project DATE: April 15, 2025 TO: Honorable Mayor and City Council FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director Kevin Merril, City Engineer By: Simon Vuong, Economic Development Manager SUBJECT: REJECT ALL BIDS RECEIVED FOR THE DOWNTOWN LIGHTING IMPROVEMENT PROJECT AND DIRECT STAFF TO RE-BID THE PROJECT CEQA: Not a Project Recommendation: Approve SUMMARY In Fiscal Year 2023-2024, the Downtown Lighting and Streetscapes Improvement Project, now known simply as the Downtown Lighting Improvement Project, (“Project”) was added to the Capital Improvement Program (“CIP”) to improve the Huntington Drive corridor within the Downtown Arcadia Community Benefit District (“CBD”) between Santa Clara Street and Fifth Avenue The planned improvements include tree lighting replacement, new over-the-street banner poles, and other streetscape improvements for a total of $225,000 authorized in the Fiscal Year 2023-24 CIP Budget. The Project was advertised for bids and bids were opened on March 6, 2025. Only two bids were received, and both bids were significantly higher than the budget. It is recommended that the City Council reject all bids received for the Downtown Lighting Improvement Project and direct staff to re-bid the Project with changes to reduce costs and allow additional bidders to qualify to bid. Even with potential cost-saving measures and increasing the pool of qualified bidders, it is possible that an additional appropriation will be required after re-bid, or the scope will need to be further adjusted. BACKGROUND During the 2023-24 Fiscal Year Budget Process, a new program to enhance the Downtown area was proposed utilizing American Rescue Plan Act (“ARPA”) funds, which included the following elements: Downtown Lighting Improvement Project April 15, 2025 Page 2 of 3 • Replacing existing uplights, tree-mounted power boxes, and electrical conduit for 68 palm trees in Downtown Arcadia that were originally installed in the 1990's as part of the Downtown 2000 Beautification Project and have reached the end of their lifecycle. • Addition of a new over-the-street banner support installation on First Avenue between Huntington Drive and Alta Street for use by community organizations to promote events. • Other improvements to existing Downtown streetscape infrastructure to refresh or repair, including planters, signage, and other decorative streetscape treatments installed as part of the Downtown 2000 project. At the June 6, 2023, City Council Meeting, the City Council adopted Resolution No. 7501 adding the Downtown Lighting Improvement Project to the Fiscal Year 2023-24 CIP Budget. A Professional Services Agreement (“PSA”) was entered between the City’s on- call engineering consultant, Kreuzer Consulting Group (“KCG”), on April 14, 2024, to develop and produce base plans, lighting design and imagery, electrical design and lighting plans, and banner pole design and calculations. Design plans were completed and finalized in January 2025. After consulting with the Downtown Arcadia Improvement Association (“DAIA”) and evaluating the funding limitations, it was determined that the focus of the project should be on the tree lights along Huntington Drive, with other project elements taking less priority. Therefore, the scope of the bid focused only on the tree lights, with the over-the- street banner poles to be addressed separately and other streetscape improvements removed. In coordination with KCG, many alternatives of the tree lighting options were discussed, including uplighting vs. wrapped lighting, number of trees lit, existing conduit and infrastructure usage, etc. Based on the various designs presented, the estimated costs ranged from $259,618 to $410,815. Given the funding limitations, the preferred option was the less expensive option, and this was reflected in the Notice Inviting Bids. DISCUSSION The Notice Inviting Bids was published on February 14, 2025. On March 6, 2025, the City received two (2) bids, summarized below: Bidder Location Bid Amount Crosstown Electrical & Data, Inc. Irwindale, CA $696,955.00 Servitek Electric, Inc. Norwalk, CA $1,041,448.50 All bids are well above the City’s budget. In the analysis of the bid package, it was determined that the bid package restricted a range of potential bidders due to licensing requirements. In addition, the size of the project is challenging in that it is a minor project Downtown Lighting Improvement Project April 15, 2025 Page 3 of 3 for large firms and a significant project for smaller, niche firms. Due to these issues, it has been determined that the scope of the work could be scaled back to attract the right firm to bid on work that would be in line with their qualifications and project experience, such as firms who specialize in the technical space of lighting, electrical installation and streetscape beautification. To attract additional interest and potentially lower costs, it is recommended that the current bids be rejected. It is anticipated that the Project will be re-bid as a lump sum, expanding the license types of qualifying bidders, and require a pre-bid site walk for bidders to gain a better understanding of the scope of the work involved. 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 American Rescue Plan Act Funds in the amount of $225,000 have been budgeted in the Fiscal Year 2023-24 Capital Improvement Program for this project. The bids received were considerably higher than the budgeted amount, and even with potential cost-saving measures mentioned previously, it is likely that an additional appropriation will be required after re-bid. There are additional ARPA funds that may be available for this project should the City Council wish to allocate them. 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 Downtown Lighting Improvement Project and direct staff to re-bid the Project.