REPORT TO THE CITY COUNCIL FROM: SCOTT L. MOZIER, P.E., Director Public Works Department BY: BRIAN E. RUSSELL, Assistant Director Public Works Department, Streets, Landscape, and Graffiti Divisions MARK A. RIVAS, Senior Management Analyst Public Works Department, Streets, Landscape, and Graffiti Divisions SUBJECT ..Title Reject all bids for the requirement contract to Furnish and Install Pavement Undulations on Various City Streets. (Bid File 12402144) (Citywide) ..Body RECOMMENDATION Staff recommends that the City Council reject all bids for the requirements contract to Furnish and Install Pavement Undulations on Various City Streets and direct staff to rebid the contract. EXECUTIVE SUMMARY The City of Fresno seeks to award a requirements contract for the installation of pavement undulations (speed humps). Bid specifications were prepared and advertised, and a public bid opening was held on July 16, 2024. Three bids were received. After the bids were received, staff became aware of an issue with the bid specifications that would compromise the City's ability to apply liquidated damages if a contract were awarded, and the contractor failed to perform the work within the specified timeframe. This concern was routed to the City Attorney's office for review, who recommended that Council reject all bids, for staff to make an adjustment to the bid specifications and rebid. By awarding the contract as currently bid, the City would not be able to apply liquidated damages, essentially giving the contractor up to one year to complete the work. Once Council approves this action to reject all bids, staff will revise the bid specifications and rebid the contract within 30 days. Staff recommends that City Council reject all bids, and direct staff to adjust the bid specifications and rebid the contract. BACKGROUND The prior requirements contract to Furnish and Install Pavement Undulations on Various City Streets expired on April 23, 2024. Public Works sought to rebid the contract as additional locations were identified for speed hump installation to aid in traffic calming efforts. A notice inviting bids was advertised in The Business Journal and the City's Planet Bids website on June 19, 2024. The notice inviting bids was received by 8 building exchanges and distributed to 16 prospective bidders. Three sealed bids were received and publicly opened by the Purchasing Division on July 16, 2024. Staff plans to adjust the bid specifications as recommended by City Attorney so that liquidated damages can be applied if work is not completed within the clearly defined number of days listed in the bid specifications. This will ensure that as speed humps are identified and ordered, they are completed within an acceptable timeframe for the City. Once Council approves this action to reject all bids, staff will revise the bid specifications and rebid the contract within 30 days. Staff recommends that Council reject all bids, and direct staff to rebid the requirements contract to Furnish and Install Pavement Undulations on Various City Streets. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act (CEQA) Guidelines, Section 15378, the rejection of all proposals does not qualify as a 'project' as defined by the CEQA requirements. LOCAL PREFERENCE Local preference was not considered as staff is recommending rejecting all proposals. FISCAL IMPACT A rejection of all bids will result in additional staff costs to rebid the project. The adopted operating budget for the Public Works Department has sufficient funding to cover the additional staff costs to rebid the project. Attachment: Bid Evaluation