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HomeMy WebLinkAboutStaff Report 3.D 07/16/2018DATE: July 16, 2018 TO: Honorable Mayor and Members of the City Council through City Manager FROM: Dan St. John, F.ASCE — Director, Public Works & Utilities Jeff Stutsman, P.E. — Senior Civil Engineer, Public Works & Utilities SUBJECT: Resolution Rejecting All Bids for the Lakeville Highway Channelization Project RECOMMENDATION It is recommended that the City Council adopt the attached Resolution Rejecting All Bids for the Lakeville Highway Channelization Project. BACKGROUND The City has recognized the need to resolve traffic issues on Lakeville Highway at Pine View Way for many years. Although this section is State Highway, this location was a low priority on the Caltrans project list so the City took the lead and applied for funding to complete the traffic improvements sooner than would otherwise occur under Caltran's prioritization. The proposed project would upgrade the intersection of Lakeville Highway at Pine View Way with new signage, radar speed feedback signs, striping and markings. On December 3, 2012, the City accepted a Highway Safety Improvement grant for the design and construction of improvements on Lakeville Highway, also known as SR 116, at Pine View Way, in the amount of $185,400. The proposed actions meets Council goal: "Plan for and implement priority capital projects as funding permits." DISCUSSION The project was delayed during the design review and appraisal process due to changes in project direction by Caltrans. Contract documents were prepared by staff and the Notice Inviting Bids for the work was issued on May 3rd and IOt', 2018. On May 24, 2018, one (1) bid was received as follows: Name of Bidder Business Location Total Base Bid VSS International West Sacramento $226,120.00 Engineer's Estimate N/A $142,430.00 The bid for the work is significantly higher than similar projects currently under construction and the engineer's estimate, and exceeds the City CIP budget. It is recommended to re -bid the project after staff performs outreach to construction companies that perform similar work. It is anticipated that additional outreach and rebidding the project will yield a construction contract that is closer to the project budget. FINANCIAL IMPACTS The project is included in the FY 18/19 CIP Budget as C16101309 with an approved project budget of $215,000 as funded by the Highway Safety Improvement Program and Street Maintenance Fund. ATTACHMENTS 1. Resolution 2 Attachment 1 RESOLUTION REJECTING ALL BIDS FOR THE LAKEVILLE HIGHWAY CHANNELIZATION PROJECT WHEREAS, City staff prepared construction bid documents and advertised for construction of this Project; and WHEREAS, in accordance with the City of Petaluma Charter and Municipal Code, California Public Contract Code Section 20162 and other applicable law, City staff solicited bids for the Project; and WHEREAS, the project was bid on May 3rd and l01h, 2018, and one (1) bid was received and opened on May 24, 2018, in accordance with applicable law; and WHEREAS, the bid received for the project exceeded the budgeted amounts; and WHEREAS, the bid exceeds the engineer's estimate of market costs for construction. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Petaluma hereby: 1. Rejects all bids for the Lakeville Highway Channelization Project. 2. Directs staff to contact companies performing similar work and rebid the project. 3