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17-0307_SIEMENS INDUSTRY, INC_E17_Agenda Report3/7/2017 E17 TO: FROM: SUBMITTED BY : City of San Juan Capistrano Agenda Report Hon orable Mayor and Members of the City Council ~Siegel, City Manager Steve May, Public Works and Utilities Director _Lf[AA._ PREPARED BY: George Alvarez, P.E., City Engineer/Traffic Engineer );tY DATE: SUBJECT: March 07, 2017 Consideration of Rejecting Bids and Authorizing Staff to Re-advertise and Receive Construction Bids for the Citywide Street Name Sign Replacement Project (CIP 11101) RECOMMENDATION: By motion: 1. Reject all bids received for the Citywide Street Name Sign Replacement Project (CIP 11101); and, 2. Authorize staff to re-advertise and receive construction bids for the Project. EXECUTIVE SUMMARY : The purpose of this project is to bring City traffic signs up to current Federal and State standards for retroreflectivity, which is a measure of how much light a sign reflects back toward the source of the light (headlights). Staff is recommending that the City Council reject all bids received for the Citywide Street Name Sign Replacement Project and direct staff to re-advertise due to bid irregularities and budget constraints. The low bidder has requested withdrawal of its bid because of a significant clerical error, and one bid was submitted to the wrong department and was not opened with the other bids. Additionally, the second low bid is more than double the current project budget of $180,000. DISCUSSION/ ANALYSIS : There is an additional $180,000 for the Project included in the Fiscal Year 2017/2018 budget that, when added to the current budget, will likely provide sufficient funding for the project. A summary of bid results is as follows: City Council Agenda Report March 07, 2017 Pag e 2 of 3 Name of Bidder Hi-Way Safety Rentals, Inc . Aegis, ITS BC Rentals , Inc . Statewide Traffic Safety & Signs Highway Specialty Co., Inc. Bid Amount $132,955 $337,159 $347,670 $595,700 Not Opened The low bidder, Hi-Way Safety Rentals, Inc., requested that its bid be withdrawn due to a major clerical error. Another bidder, Highway Specialty Co. Inc., submitted its bid prior to the bid opening time, although the bid was addressed to the City Council and delivered to the City Manager's office. Consequently, that bid was not opened during the January 10 bid opening. Either opening that bid after the advertised bid opening date, or failing to do so, could result in challenges to the bidding process. Consequently, staff is recommending that the City Council reject all bids and authorize staff to re-advertise and receive bids for the Project. FISCAL IMPACT: The recommended action would require a minor expenditure from the current budget to re- advertise the project. ENVIRONMENTAL IMPACT: The present action of rejecting bids is not subject to CEQA pursuant to Section 15060(c)(3) of CEQA Guidelines because the action is not a project as defined in Section 15378 of the CEQA Guidelines, and the action has no potential for resulting in physical change to the environment, directly or indirectly. PRIOR CITY COUNCIL REVIEW: There has been no prior City Council Review . COMMISSION/COMMITTEE/BOARD REVIEW AND RECOMMENDATIONS: The sign replacement project does not require review by any committee, board, or commission . NOTIFICATION: • Statewide Traffic Safety & Signs • Hi-Way Safety Rentals, Inc. • Aegis, ITS • BC Rentals, Inc. • Highway Specialty Co., Inc. City Council Agenda Report March 07, 2017 Page 3 of 3 ATTACHMENT(S): None.