Report Prepared by: Eric Soito, P.E. Associate Engineer, Engineering Department
Title
SUBJECT: Approval to Reject all Bids Received for Project No. CP170054 Cherokee Avenue Culvert Replacement
REPORT IN BRIEF
Considers rejecting all bids received to repair the culvert crossing under Cherokee Avenue at Black Rascal Creek and construction of a raised crosswalk across Cherokee Avenue for the multiuse path along Black Rascal Creek.
RECOMMENDATION
City Council - Adopt a motion:
A. Rejecting all bids received for Project No. CP170054 Cherokee Avenue Culvert Replacement due to inadequate funding and;
B. Directing staff to re-evaluate 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 2023/2024 Adopted Budget.
DISCUSSION
On July 9, 2024, City staff received two (2) bids for the project with the following results:
|
1 |
Cal Valley Construction, Inc. |
$ 1,129,599.00 |
|
2 |
United Pavement Maintenance, Inc. |
$ 1,224,754.00 |
The current project budget is $645,949.00, and after calculating the bid results, contingency, engineering, testing, and inspections, that the project budget at a deficit of approximately $731,000. City staff reviewed the bids and evaluated additional funding possibilities. City staff also considered what portions of the project could be redesigned to reduce costs. It was decided to recommend all bids be rejected to allow time to perform redesign and to secure additional funding.
On July 17, 2024, 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.
IMPACT ON CITY RESOURCES
This project was established as a Capital Improvement Project with funding from FEMA Grant and City Enterprise Funds.
ATTACHMENTS
1. Bid Results
2. Rejection Letter