Item Coversheet

Agenda Item - 3.f.

City of Garden Grove


To:Scott C. Stiles

From:William E. Murray
Dept.:City Manager 

Dept.: Public Works 

Rejection of a construction bid and authorization to re-advertise Project No. CP-1007000 Phase 1: Acacia-Josephine Storm Drain Improvements. (Action Item)



For City Council to reject all construction bids and authorize re-advertisement for Project No. CP-1007000 – Phase 1:  Acacia-Josephine Storm Drain Improvements.


Under current conditions, flooding occurs on various streets and within various yards of homes fronting the streets between Dale Street and Josephine Street and between Garden Grove Boulevard and Stanford Avenue.  Engineering staff analyzed the conditions and prepared plans and specifications for construction of a storm drain for the neighborhood.  The project was advertised on May 28, 2021, with the bid opening date scheduled for June 30, 2021; however, no bids were submitted.


Staff again solicited bids for this project pursuant to Municipal Code Section 2.50.100 on July 1, 2021.  Bids were opened by the City Clerk's Office on July 28, 2021 at 11:00 a.m.  One bid was received in the amount of $3,740,000.  This amount exceeds the engineer’s estimate of $2,400,000 by $1,340,000 and consequently exceeds the budget for the project.


At the first bid opening on June 30, 2021, eight contractors showed interest in the project by purchasing plans and specifications, but no bids were received.  At the most recent bid opening for the project, two additional contractors purchased plans and specs yet only one bid was received.  It is generally understood that a lack of competitive bids increases a project’s price.


In response to the lack of bidders, staff initiated contact with the rest of the plan holders who decided not to bid on the job.  Some of them responded that it is due to their current workload, others said because they do not want to implement the Community Workforce Agreement (CWA), and some said it was a combination of both.  With regard to the CWA, some contractors said they have difficulty integrating CWA workers into their underground construction operation due to the workers’ unfamiliarity with the contractor’s work team and operation. Staff will plan to follow-up with contractors to see how we may be able to help mitigate their concerns before the project is re-advertised.


Staff recommends the rejection of the bid received and the re-advertisement of this project at a later date for the chance to receive competitive bids.


There is no impact to the General Fund for the proposed actions.  This improvement is included in the 2021-2022 Capital Improvement Budget and is funded by a Community Development Block Grant (CDBG), General Fund, gas tax, water capital and drainage fees.


It is recommended that the City Council:


  • Reject the bid received on Wednesday, July 28, 2021, for Project No. CP-1007000 - Acacia-Josephine Storm Drain Improvements based on the sole bid being significantly higher than the engineer's estimate; and


  • Authorize staff to re-advertise the project at a later date.



By: Mike Santos, P.E.

      Associate Engineer

DescriptionUpload DateTypeFile Name
BID SUMMARY 8/9/2021Backup MaterialBID_SUMMARY_CP-1007000.pdf