Council authorizes direct negotiations after bids come in over estimate for Artsakh Avenue improvements

At its May 6 meeting the Glendale City Council adopted a resolution to reject submitted bids and authorize the Director of Public Works to negotiate directly with qualified bidders for the Glendale Arts And Entertainment District Improvements on Artsakh Avenue (Specification No. 3893 R).

Public Works staff told the council the project was first advertised in August 2023 with no bids, re-advertised in October 2024, and produced three bids received on Jan. 15, 2025. "The lowest bid ... was deemed nonresponsive because they didn't meet the mandatory requirement for contractors' experience," said the presenter from Public Works. The two remaining bids were substantially higher than the engineer’s estimate of $8,000,000.

Staff recommended rejecting all bids to allow direct negotiation with the two qualified bidders to keep the project on schedule and avoid further rebidding costs. The city budgeted approximately $8,700,000 for the project, and staff said negotiations would aim to bring a negotiated contract within or near the budget; if needed, staff will return to council to request approval to award a contract and any additional appropriation.

Council members raised financing and value-engineering questions. One councilmember asked whether staff would pursue financing options such as municipal loans or federal grants; staff confirmed those options would be explored and said engineering staff may pursue value engineering if negotiations do not meet the budgeted amount. Assistant Director (city engineer) and the Public Works director were present for questions.

There were no public speakers on this item. The council moved, seconded and approved the resolution by roll call. The approved motion rejects the bids, adopts revised specifications, dispenses with competitive bidding for the next step, and authorizes the Public Works Director (or designee) to negotiate directly with the qualified bidders.