Report Prepared by: Ian Sather, E.I.T Assistant Engineer, Engineering Department
Title
SUBJECT: Approval to Reject All Bids Received for the Re-Bid of Project No. CP220066 CMAQ (059) Traffic Signal Synchronization
REPORT IN BRIEF
Considers approving to reject all bids received for the rebid of CP220066 CMAQ (059) Traffic Signal Synchronization to update traffic signal equipment at 32 intersections and upgrade to traffic cameras at 14 intersections throughout the City due to insufficient project funding, as well as non-responsive or responsible contractor bid packets.
RECOMMENDATION
City Council - Adopt a motion rejecting all bids received for the re-bid of Project No. CP220066 CMAQ (059) Traffic Signal Synchronization due to insufficient funding and direct staff to re-evaluate the project design and re-bid the project.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions as specified by the City Council; or,
3. Deny the request; or,
4. Refer back to staff for reconsideration of specific items as requested by City Council.
AUTHORITY
Charter of the City of Merced, Article II, Section 200 - Powers, City of Merced and Article XI, Section 1109 - Contracts on Public Works.
Merced Municipal Code, Chapter 3.04, Article IV - Public Works Contracts.
The City Council, in its discretion, when it is in the best interests of the city to do so, may waive any informalities or minor irregularities in any bid process, may reject any or all bids, or may accept the bid that best serves the public purpose even though it may not be the lowest. The City Council may readvertise for bids or, except as otherwise provided in this chapter, proceed with the purchase of the materials, supplies, equipment or contractual services by negotiation in the open market.
CITY COUNCIL PRIORITIES
As provided for in the FY 2025/2026 Adopted Budget.
DISCUSSION
The purpose of the project is to update timing, coordinate the roadway for arterial and collector roadways, and synchronize the traffic signals. All work will be done within the existing City right-of- way along the following major throughfares: R Street from 15th Street to Yosemite Avenue; M Street from 16th Street to Iron Stone Drive; G Street from Yosemite Avenue to Farmland Avenue; Olive Avenue from Loughborough Avenue to Park Avenue, and Yosemite Avenue from El Redondo Drive to G Street.
On March 7, 2022, Council adopted Resolution 2022-12 granting CMAQ funds in the amount of $211,365 for Preliminary Engineering costs for the design of the traffic signal synchronization/timing project.
On September 16, 2024, City Council accepted $993,417 in CMAQ grant funding for construction costs of the traffic signal synchronization and allocated $128,708 towards matching funds.
On March 6, 2025, the project was originally advertised for 4 weeks. The bids received were rejected due to insufficient funding at the April 21, 2025, City Council Meeting.
On July 10, 2025, the project was sent out for re-bid with modifications to the plans and specifications. The revised engineer’s estimate was $1,160,000. This is also the first project to have the Project Labor Agreement (PLA) requirements added to the specifications.
On August 07, 2025, City staff received two (2) bids for the project with the following results:
|
1 |
Bear Electrical Solutions, LLC. |
$ 1,809,626.00 |
|
2 |
St. Francis Electric, LLC. |
$ 1,817,697.00 |
The total project budget after adjusting for contingency, engineering, testing & inspections, was calculated to be:
|
Construction |
$ 1,809,626.00 |
|
Contingency (10%) |
$ 180,962.60 |
|
Engineering, Testing & Inspection (5%) |
$ 90,481.30 |
|
TOTAL: |
$ 2,081,069.90 |
Due to many economic factors, the equipment costs of the camera systems and new traffic light timing controllers and associated labor came in higher than expected, which resulted in an increased bid amount of approximately $650,000. In addition, both contractors were missing required documents in their bid package submittals.
On August 12, 2025, City staff sent a letter notifying all contractors who bid on the project that staff will recommend to City Council that all bids be rejected.
The current project budget is $1,196,433 which comprises of Measure V Alt Modes, Measure V Local Transportation, SB1, and CMAQ Grant Funding. After calculating the bid results, contingency, engineering, testing, and inspections, the project budget was found to be at a deficit of approximately $884,637. City staff reviewed the bids and are evaluating additional funding possibilities. City staff also considered what portions of the project could be redesigned to reduce costs.
Staff recommends all bids be rejected to allow time to perform redesign, identify potential bid alternatives, and allow staff to explore additional funding opportunities.
IMPACT ON CITY RESOURCES
Project CP220066 was established as a Capital Improvement Project with funding from FHWA under the Congestion Mitigation and Air Quality (CMAQ) Program, Measure V, and SB1.
ATTACHMENTS
1. Bid Results
2. Rejection Letter
3. Location Map