HomeMy WebLinkAbout2006-05-09 - AGENDA REPORTS - CVC GAP CLOSURE BID REJECT (2)Agenda Item:
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR City Manager Approval:
Item to be presented by:Curtis Nay
DATE: May 9, 2006
SUBJECT: CROSS VALLEY CONNECTOR GAP CLOSURE, PROJECT NO.
S1001 — REJECTION OF ALL BIDS AND AUTHORIZATION TO
RE -ADVERTISE FOR BIDS
DEPARTMENT: Public Works
RECOMMENDED ACTION
City Council reject all bids and direct staff to re -advertise for bids for the Cross Valley Connector
Gap Closure, Project No. S1001.
The Cross Valley Connector (CVC) Gap Closure project will extend Newhall Ranch Road from
Interstate 5 to Copper Hill Drive. It is the western most segment of the CVC, which will provide
a direct connection between Interstate 5 and State Route 14.
On April 25, 2006, the City's Purchasing Division received the following bids for the project:
Company Bid Amount Location
C.A. Rasmussen, Inc. $17,195,495.80 Simi Valley, CA
Security Paving Co., Inc. $17,618,076.23 Sun Valley, CA
Griffith Company $18,801,976.74 Santa Fe Springs, CA
Palp, Inc. DBA Excel Paving $18,829,480.90 Long Beach, CA
Staff recommends that all bids be rejected and that the City Council authorize the
re -advertisement of the project. This recommendation is based on the California Department of
Transportation (Caltrans) issuance of instructions on May 1, 2006, stating that federal -aid
projects, including the CVC Gap Closure which has $1 million in federal funding, shall
APPROVED
implement a race -neutral Disadvantaged Business Enterprise (DBE) Program. This action comes
as a result of a recent decision from the Ninth Circuit Court of Appeals, and guidelines
promulgated by the Federal Highway Administration (FHWA) in response to that decision.
Effective May 1, 2006, local agencies who receive federal transportation assistance shall
implement a DBE race -neutral program, or risk losing federal funds.
Prior to the Ninth Circuit Court of Appeals decision, Caltrans directed that all federal -aid
projects, which included the CVC Gap Closure, be bid as race -conscious. As a condition of
award, the contractor was required to meet the specified DBE goal or show good faith effort.
The new requirement of race -neutral means the City encourages the contractor to maximize DBE
participation, but there is no specific rate of DBE participation that must be achieved to receive a
contract award. By rejecting all bids and re -advertising the project, the City will be able to
comply with Caltrans' requirement that the Cross Valley Connector implement a race -neutral
DBE program.
ALTERNATIVE ACTIONS
Other action as determined by the City Council.
FISCAL IMPACT
None
ATTACHMENTS
None