REPORT TO THE CITY COUNCIL
FROM: DENIX D. ANBIAH, PE, Director
Capital Projects Department
SCOTT L. MOZIER, PE, Director
Public Works Department
BY: Scott p. sehm, PE, Assistant Director
Capital Projects Department, Design Services Division
ISAAC CAMPOS, Project Manager
Capital Projects Department, Design Services Division
SUBJECT
Title
Reject all bids for the Shaw Avenue Roadway Improvements from Fruit Avenue to Palm Avenue Project (Bid File No. 12601498) (Council Districts 1 and 2)
Body
RECOMMENDATIONS
Staff recommends the City Council reject all bids (Bid File No. 12601498) and direct staff to rebid the Shaw Avenue Roadway Improvements from Fruit Avenue to Palm Avenue Project.
EXECUTIVE SUMMARY
Staff recommends the City Council reject all bids for the Shaw Avenue Roadway Improvements from Fruit Avenue to Palm Avenue Project and direct staff to rebid. During the bid evaluation, staff discovered that Notice Inviting Bids contained a material error in the contractor licensing requirements, rendering the bid specifications legally defective and resulting in the improper disqualification of some bidders. After consulting with the City Attorney’s Office, staff determined that rejecting all bids is the most appropriate and legally sound option and aligns with the Contractor’s State Licensing Board (CSLB) framework and California public contracting law. Awarding the project under the defective specifications constitutes a material deviation that invalidates the competitive bidding process, exposing City to potential litigation and would conflict with the City’s responsibility to provide a fair and full competitive bidding process and obtain the lowest responsible bid. The most defensible course of action is to reject all bids and re-advertise the project with corrected specifications, including the proper licensing requirements.
BACKGROUND
City of Fresno’s Department of Public Works identified the need for pavement rehabilitation along Shaw Avenue, spanning approximately 0.7 miles from Fruit Avenue to about 950 feet east of Palm Avenue (Project). In September 2021, the City applied to the Surface Transportation Block Grant (STBG) program to provide funding for the design, right-of-way, and construction phases of the Project. Along with pavement restoration, this project entails ADA-compliant curb ramp upgrades, median nose adjustments, traffic loop replacements, and updated signage and striping. This project is federally funded through the STBG with local match funding from the SB1 Road Maintenance and Rehabilitation Account (RMRA) account.
The engineering design phase commenced following the City Council’s approval of a consultant agreement with BKF Engineers in November 2023. The right-of-way phase began in March 2024 with the authorization to proceed and City’s approval of schematic design. The engineering design and right-of-way phases were completed in February 2026.
The Notice Inviting Bids for the project’s construction contract was published in the Business Journal and posted on the City’s website on March 18, 2026. Seven (7) sealed bid proposals were received and opened in the public bid opening on April 14, 2026, with bids ranging from $1,549,771 to $1,960,120.
During the bid evaluation process, staff discovered the Notice Inviting Bids contained a material error in the contractor license requirements, rendering the bid specifications legally defective and resulting in the improper disqualification of some bidders. After consulting with the City Attorney’s Office, staff concluded that rejecting all bids is the most appropriate and legally sounds option that aligns with the Contractors License Board framework and California public contracting law. Proceeding with an award under the defective specifications constitutes a material deviation that invalidates the competitive bidding process, exposing City to potential litigation, and conflict with the City’s obligation to provide a fair and fill competitive bidding and to secure the lowest responsible bid. The most legally defensible approach is to reject all bids and re-advertise the project with corrected specifications, with the proper licensure requirements.
The City Attorney’s Office has reviewed and approved the environmental determination as to form.
ENVIRONMENTAL FINDINGS
Rejecting all bids does not qualify as a “project” under CEQA because it lacks any potential for direct or reasonably foreseeable indirect physical change to the environment and involves no discretionary approval that would trigger environmental review. CEQA defines a “project” as an activity subject to public agency discretion that may result in environmental impacts. Routine administrative actions, like declining to accept bids, are explicitly excluded from this definition, and are therefore deemed “not a project” under CEQA. As such, no environmental determination or finding is required.
LOCAL PREFERENCE
Local preference was not implemented for this project because this project is federally funded, which precludes local preference.
FISCAL IMPACT
The Shaw Avenue Roadway Improvements between Fruit Avenue and Palm Avenue is in City Council Districts 1 and 2. Rejections of all bids will result in additional costs to rebid the project. Additional local funding may be required to cover the anticipated additional cost. The project is funded by the STBG and SB1 Road Maintenance and Rehabilitation Account (RMRA) funds.
Attachments:
Bid Evaluation
Vicinity Map
Location Map