Report Prepared by: Ian Sather, E.I.T Assistant Engineer, Engineering Department
Title
SUBJECT: Approval to Reject All Bids Received for Project No. CP220066 CMAQ (059) Traffic Signal Synchronization
REPORT IN BRIEF
Considers approving to reject all bids received for CP220066 CMAQ (059) Traffic Signal Synchronization to update traffic signal equipment at 32 intersections and upgrade to traffic cameras at 11 intersections throughout the City due to insufficient project funding.
RECOMMENDATION
City Council - Adopt a motion rejecting all bids received for 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 2024/2025 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 Main Street to Yosemite Avenue; M Street from Main 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 Mansionette Drive.
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 advertised for 4 weeks. The Engineer estimate was $1,275,000.
On April 03, 2025, City staff received two (2) bids for the project with the following results:
|
1 |
Tennyson Electric, LLC. |
$ 2,216,300.00 |
|
2 |
St. Francis Electric, LLC. |
$ 2,287,000.00 |
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 around $1,000,000.
On April 7, 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 $1,202,153 which comprises of Measure 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 $1,285,777. 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 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