Title
Recommendation to Authorize the City Manager to Reject All Bids for the Safe Routes to School Project, No. P.W. 04-25-11. (Public Works 310)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
The City of Alameda (City) issued plans and specifications for the Safe Routes to School Project (Project), No. P.W. 04-25-11 on July 1, 2025. The project will improve safety of children walking and biking to eight school campuses in the City. Following a competitive bid process, only one bid was received for an amount significantly higher than the engineering estimate and exceeding the project budget. Staff believes the bid estimate does not represent a good value or use of public funds and recommends City Council to reject all bids on this project. Staff intends to reduce the project scope to focus on the highest safety impact components of signage and striping in order to complete the project within the required grant timelines.
BACKGROUND
The City of Alameda (City) was awarded $84,000 in grant funding from the Alameda County Transportation Commission (Alameda CTC) for the Safe Routes to School Project (Project) to evaluate and implement improvements in eight School Site Assessments (SSAs) in the City. Between 2016 and 2021, the Countywide Safe Routes to School program developed eight SSAs for Alameda schools and the grant agreement was finalized in 2022.
While some of the recommended improvements have already been constructed, many remain outstanding. City staff prepared plans and specifications to construct the remaining improvements such as signing and striping, and curb ramp improvements. Additionally, the City has advanced several street safety policies as part of the Alameda Vision Zero Policy. The Safe Routes to School project includes improvements consistent with these policies to improve bike and pedestrian safety.
DISCUSSION
To solicit the maximum number of bids and most competitive price, plans and specifications were provided to 17 separate builders’ exchanges throughout the Bay Area. Notices were also sent to contractors on the Public Works Department Contractor List. In addition, notices were placed on the City’s website and published in the Alameda Journal. Bids were opened on July 22, 2025. After a bidding period of 21 days, one contractor submitted a bid. The bid result is as follows:
|
Bidder |
Location |
Bid |
|
Gruendl Inc. dba Ray's Electric |
Oakland, CA |
$298,763.50 |
The one bid submitted on this project was substantially over the engineer’s estimate of $180,000 and the bid of $298,763.50 plus a 10% contingency totaling $30,000, exceeds the available funds for construction of this project. Furthermore, staff believes the bid estimate does not represent a good value or use of public funds. The single bid is likely due to this being a relatively small project but still requires a general contractor due to the work requiring different trades - i.e. concrete and striping. ACTC also has a small local business enterprise requirement which precluded some bidders.
Staff recommends rejecting the bid and not awarding the construction contract. Due to time constraints of the grant funding which require funds to be expended by December 31, 2025, staff also recommends reducing the project scope and focusing on striping and signage improvements which have the greatest safety impact. The reduced scope of work can be directly negotiated with a contractor, per the City’s purchasing policy and California Uniform Public Construction Cost Accounting Act. Staff does not recommend initiating a new competitive bidding process after re-scoping the project due to the grant time limitations.
The remainder of the original scope, primarily concrete curb ramp and accessibility improvements will be included in a future project.
ALTERNATIVES
- Reject all bids and do not award the construction contract. Staff will re-scope the project to be able to be constructed with the available budget and through the California Uniform Public Construction Cost Accounting Act process per the City’s purchasing policy.
- Adjust or modify scope within the contract.
- Do not award the contract and provide alternative direction to staff.
FINANCIAL IMPACT
The Safe Routes to School Project is funded by Capital Improvement Project (CIP) 62000, Safe Routes to School Infrastructure, with an available budget of $317,068.82. The Project is partially funded by an Alameda CTC grant totaling $84,000 and local match funding. The contract plus contingency for the received bid would be $328,763.50, which exceeds available budget within the CIP allocation. As noted in the discussion, staff believes the bid estimate does not represent good value or use of public funds and instead will execute the signage and striping portion of the project by directly negotiating with a contractor, per the City’s purchasing policy and California Uniform Public Construction Cost Accounting Act. There is no impact to the General Fund.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
General Plan policies support complete streets, which are designed for all modes of transportation as follows: General Plan policies LU-3 Complete Streets and ME-10 Movement, Action A, Complete Streets. The Project is also included in Resolution 15849, Making Significant Safety Improvements to Alameda Streets in 2022 and Beyond to End Fatalities and Serious Injuries. The Project is consistent with and helps implement the City’s Active Transportation Plan and Vision Zero Plan as well as the City Strategic Plan Project TIE16 to implement safe routes to school physical improvements. This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.
CLIMATE IMPACT
Transportation generates over 70% of the greenhouse emissions in Alameda. Improving bicycle and pedestrian safety supports non-carbon emitting modes of transportation and the use of transit, which reduces greenhouse gas emissions from the City’s transportation sector.
RECOMMENDATION
Authorize the City Manager to reject All Bids for the Safe Routes to School Project, No. P.W. 04-25-11.
Respectfully submitted,
Erin Smith, Public Works Director
By,
Cody Lim, Project Manager
Scott Wikstrom, City Engineer
Financial Impact section reviewed,
Ross McCarthy, Finance Director