Item Coversheet

Agenda Item - 3.k.


City of Garden Grove


INTER-DEPARTMENT MEMORANDUM

To:Lisa L. Kim

From:William E. Murray
Dept.:City Manager 

Dept.: Public Works 
Subject:

Rejection of all construction bids and authorization to re-advertise for Project No. CP-1344023, Traffic Signal Modifications at Various Locations Fiscal Year 2023-24.  (Action Item)

Date:9/12/2023

OBJECTIVE

For City Council to reject all construction bids and authorize the re-advertisement of Project CP-1344023 - Traffic Signal Modifications at Various Locations FY 23-24 (Project). 

BACKGROUND

Approved under the FY 2023-24 Capital Improvement Plan, the Project consisted of traffic signal modifications at Magnolia Street/Lampson Street, Brookhurst Street/Hazard Avenue, Garden Grove Boulevard/Galway Street, and Trask Avenue/Newhope Street.  The scope of work involves installing new signal equipment, poles, cabinets, conduits, cables and vehicle video detection.  As part of the improvements, striping will be modified and curb ramps will be constructed to meet ADA requirements.  

DISCUSSION

Staff solicited bids for subject project pursuant to Municipal Code Section 2.52.010. The Project was advertised on August 9, 2023 and bid opening was conducted on August 30, 2023 at 10:00 AM. The City Clerk’s office received and opened one (1) bid. 

 

Since the City received only one (1) bid and the bid price is 59% higher than the Engineer’s Estimate, staff recommends the rejection of the bid received and the re-advertisement of the Project.  For comparison, the City received seven (7) bids for a similar traffic signal project in January of 2022.  Staff will monitor bid results of traffic signal projects from nearby local agencies and will re-advertise the Project when a more favorable bid environment is determined. 

 

FINANCIAL IMPACT

Rejecting the bid will not have a financial impact to the City.  The Project is included in the 2023-2024 Capital Improvement Budget and is funded by traffic mitigation fees and red light camera fees.  However, awarding the contract to the only bidder would result in the City paying 59% higher than the Engineer’s Estimate. 

RECOMMENDATION

It is recommended that the City Council:

 

  • Reject all bids received on August 30, 2023 for Project No. CP-1344023 - Traffic Signal Modifications at Various Locations FY 23-24; and

 

  • Authorize staff to re-advertise the project.

 

By:    Ken Vu, P.E., Associate Engineer