TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Erick Lee, Public Works Director
Katherine Doherty, City Engineer
SUBJECT: Title
Consideration of a Resolution Rejecting All Bids Received for the Digital Art Wall at the Manhattan Beach City Hall Project and Provide Direction to Re-Bid the Project or Consider Project Alternatives (Public Works Director Lee).
(Estimated Time: 15 Mins.)
A) ADOPT RESOLUTION NO. 24-0075 REJECTING ALL BIDS RECEIVED
B) DISCUSS AND PROVIDE DIRECTION
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Recommended Action
RECOMMENDATIONS:
Staff recommends the City Council:
1. Adopt Resolution No. 24-0075 rejecting all bids received on March 21, 2024 for the Digital Art Wall at the Manhattan Beach City Hall Project (“Project”), and
2. Discuss and provide direction for staff to:
a. Re-bid the Project, or
b. Return at a future date for City Council to consider project alternatives.
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FISCAL IMPLICATIONS:
There is no fiscal impact associated with the rejection of all bids received for this Capital Improvement Program (CIP) funded project.
BACKGROUND:
At the January 9, 2023 annual City Council review of work plans for the Parks and Recreation Commission, Library Commission, and Cultural Arts Commission, the Cultural Arts Commission reported the next project to be accomplished was to be the implementation of the Digital Art Wall in City Hall, as previously approved by City Council. The Digital Art Wall would display community art and public information.
The Digital Art Wall was envisioned to be a large light emitting diode (LED) display installed on the south wall in the City Hall Lobby, allowing digital artwork to be featured and rotated throughout the day. The wall surrounding the digital display was also to be rehabilitated to create the necessary substructure to support the weight and connectivity needs of the display as well as achieve a cohesive look for both the upstairs and downstairs lobbies. Design of the Digital Art Wall was completed by the Public Works Department and the package submitted to the Community Development Department for permit issuance in August 2023.
DISCUSSION:
Bids for the Project were solicited on a competitive basis in accordance with the provisions of the California Public Contract Code in November 2023. The Project was advertised on the Public Works Department Bid Opportunities webpage and the City’s Bid Portal with PlanetBids (an online service that connects vendors, suppliers, and contractors to government procurement opportunities). The Project was advertised as Project No. D-947, Digital Art Wall at the Manhattan Beach City Hall. While there were multiple plan holders for the bid, no bids were received by the due date. The Project was again advertised for bids in December 2023, but again, no bids were received by the due date.
Subsequently, in accordance with the Public Contract Code, bids were sought on an informal basis by direct contact with previous plan holders. Through this process, one bid was received by the due date of March 21, 2024, as follows:
Contractor Calculated Total Bid Amount
Stallworth Construction and Management Corporation $375,590.00
The single bid is significantly higher than the Engineer’s Estimate of $250,000 and exceeds the Project Budget. It is understood that the reasons the bid exceeded the estimate is that the work is unique with limited technical vendors available for this work, the Project is of relatively low value, and the construction industry is at full employment. The Project scope cannot be reduced and provide the intended results of the Digital Art Wall. Additionally, when staff attempted to gain clarification from the Contractor on their bid proposal, the Contractor displayed an unwillingness to establish a productive working relationship. Therefore, due to the high price of the bid and lack of cooperation from the bidder, staff determined it is not opportune to proceed with the Project at this time.
Staff recommends that City Council reject the Digital Art Wall bid received on March 21, 2024. Additionally, staff recommends that the City Council provide direction to either re-bid the Project, as currently designed, or return at a future date for City Council to consider project alternatives.
PUBLIC OUTREACH:
After analysis, staff determined that public outreach was not required for this issue. However, public meeting information about the Project, as presented at meetings of the Cultural Arts Commission and City Council, provided the public with notice of this project.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed Digital Art Wall Project and associated contract for compliance with the California Environmental Quality Act (CEQA) and has determined that there is no possibility that the activity may have a significant effect on the environment; therefore, pursuant to Section 15301(a) (Existing Facilities, in this case interior alterations at City Hall) of the State CEQA Guidelines, the project is exempt from CEQA, given that the project consists of minor alterations of existing public structures, with negligible or no expansion of use.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. Resolution No. 24-0075
2. Location Map
3. PowerPoint Presentation