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Consent
Item No. 5.
MEETING DATE: 12/19/2022
 
TO: HONORABLE MAYOR AND COUNCILMEMBERS
 
FROM: JIM SADRO, CITY MANAGER
By:  Elias Saykali, Public Works Director

 
SUBJECT:
REJECT BID RECEIVED FOR THE MONTWOOD PARK LIGHTING PROJECT, CITY PROJECT NO. 3-P-22

RECOMMENDATION:


That the City Council reject the bid received from Scansys, Inc., for the Montwood Park Lighting Project, City Project No. 3-P-22.

DISCUSSION:

On November 30, 2022, The City of La Habra received one bid from Scansys, Inc., for the Montwood Park Lighting Project (Project) with the following result. 
 
Bid Company Name Bid Amount
1 Scansys, Inc. $158,344.12

During review of the bid, staff noticed an inconsistency on one of the bid items where the Unit Price and the Amount did not match.  According to the Project's specifications, in the event of a discrepancy between the "Unit Price" and the "Amount" set forth for the item, the Unit Price shall prevail, which reduced the Contractor's bid amount from $159,831.00 to $158,344.12.  After reviewing the bid proposal, staff determined that the bid is not competitive as the bid amount is fifty percent higher than of the Engineer's Estimate.  Although the proposal met the requirements, the submitted bid is well above what is reasonable and fair for the size of the project.  Therefore, the bid should be rejected.

Staff is exploring other potential methods to complete this project, such as purchasing the materials separately to reduce cost and possibly speed up the construction process.  Staff will also analyze the plans and specifications to identify modifications that may result in more bids from qualified contractors if the event the project is re-advertised in the near future.

FISCAL IMPACT/SOURCE OF FUNDING:

This project is included in the City's adopted Fiscal Year 2022-2023 budget, with a total budget amount of $255,555 from Saint Jude Grant and Park Acquisition Funds.

GENERAL PLAN RELEVANCE/CITY COUNCIL GOALS & OBJECTIVES:

The proposed action is consistent with the following elements of the La Habra General Plan:

LU 2.5 Places supporting the Quality of Life
LU 8.3 Parks and Open Spaces Amenities
LU 17.6 Parks and Open Spaces
H   2.3 Supportive Public Facilities
OS 2.13 Sustainable Parks
OS 2.14 Heathy Parks

The proposed action is consistent with the following element of the FY2022-23 City Council Goals and Objectives:
Goal 3 - Maintenance and Improvement of City Infrastructure
Objective B - Maintain and upgrade City buildings, facilities, and parks.