HomeMy WebLinkAboutR 2026-051RESOLUTION NO. 2026-051
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE TO 1) REJECT LOW BIDDER, EDWARD’S CONSTRUCTION
GROUP, INC., AS NON-RESPONSIVE; 2) AUTHORIZE THE CITY
MANAGER OR DESIGNEE TO EXECUTE A CONSTRUCTION
CONTRACT FOR THE HALCYON COMPLETE STREETS PROJECT
(PROJECT) TO THE SECOND LOWEST BIDDER, V. LOPEZ JR. & SONS
(V. LOPEZ) FOR $6,653,626.14, SUBJECT TO ANY MINOR,
TECHNICAL, OR NON-SUBSTANTIVE CHANGES AS APPROVED BY
THE CITY MANAGER IN CONSULTATION WITH THE CITY ATTORNEY;
3) AUTHORIZE THE CITY MANAGER TO APPROVE CHANGE ORDERS
OF 10% OF THE CONTRACT AMOUNT, $665,362.61, FOR
UNANTICIPATED COSTS DURING THE CONSTRUCTION PHASE OF
THE PROJECT; AND 4) APPROVE TWO BUDGET AMENDMENTS FOR
CONSTRUCTION OF THIS PROJECT
WHEREAS, The FY 2025-26 budget includes $9,428,500 for construction of the Project;
and
WHEREAS, The Transportation Facilities Development Impact Fee (DIF) Fund to this
CIP project as stated in the DIF schedule may support 50% of the cost to complete the
roundabout portion of this project; and
WHEREAS, On April 28, 2026 staff presented 100% plans to City Council and received
authorization to proceed with advertisement. A Notice Inviting Bids was issued on May
11, 2026. The Notice Inviting Bids was published in the local paper, posted on the City’s
website, and distributed to plan rooms; and
WHEREAS, Five bids were received by the bid opening date and time of June 9, 2026,
2:00 PM, ranging from $6,038,706.51 to 10,331,385.00; and
WHEREAS, Following the bid opening, City staff reviewed the bids submitted for the
Project, including the bid submitted by Edwards Construction Group Inc. (“Edwards
Construction”). Based on that review, staff determined that the bid submitted by Edwards
Construction is non-responsive because it does not appear to be a balanced bid and does
not accurately reflect the cost to perform certain portions of the Work ; and
WHEREAS, Grant funding and DIF are sufficient to complete this project without the
additional $1,875,000 of general funding originally funded for this project.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo
Grande does hereby reject low bidder, Edward’s Construction Group, Inc., as non -
responsive.
RESOLUTION NO. 2026-051
PAGE 2
BE IT FURTHER RESOLVED that the City Council of the City of Arroyo Grande does
hereby authorize the City Manager or designee to execute a construction contract for the
Halcyon Complete Streets Project (Project) to the second lowest bidder, V. Lopez Jr. &
Sons (V. Lopez) for $6,653,626.14, subject to any minor, technical, or non-substantive
changes as approved by the City Manager in consultation with the City Attorney .
BE IT FURTHER RESOLVED that the City Council of the City of Arroyo Grande does
hereby authorize the City Manager to approve change orders of 1 0% of the contract
amount, $665,362.61, for unanticipated costs during the construction phase of the
Project.
BE IT FURTHER RESOLVED that the City Council of the City of Arroyo Grande does
hereby approve two budget adjustments: 1)Appropriate $231,718 from the Transportation
Facilities Development Impact Fee (DIF) Fund to this CIP project as stated in the DIF
schedule to support 50% of the cost to complete the roundabout , and 2) appropriate
$1,875,000 of Measure E-24 Local Sales Tax Funds from this CIP project to the
Pavement Management Project (PMP).
On motion of Council Member Guthrie, seconded by Council Member Secrest, and on the
following roll call vote, to wit:
AYES: Council Members Guthrie, Secrest, Maraviglia, and Mayor Ray Russom
NOES: None
ABSENT: Council Member Loe
the foregoing Resolution was passed and adopted this 23 rd day of June, 2026.
CAREN RAY RUSSOM, MAYOR
ATTEST:
JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:
ISAAC ROSEN, CITY ATTORNEY
RESOLUTION NO. 2026-051
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OFFICIAL CERTIFICATION
I, JESSICA MATSON, City Clerk of the City of Arroyo Grande, County of San Luis
Obispo, State of California, do hereby certify under penalty of perjury, that the
attached Resolution No. 2026-051 was passed and adopted at a regular
meeting of the City Council of the City of Arroyo Grande on the 23rd day of June, 2026.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 25th day
of June, 2026.
JESSICA MATSON, CITY CLERK