HomeMy WebLinkAbout05 REJECTION OF ALL BIDS FO THE OLD TOWN IMPROVEMENTS PROJECTSDocusign Envelope ID: 7B5985FB-4931-40EC-BD13-D7C13E1D8F93
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MEETING DATE: JANUARY 7, 2025
TO: ALDO E. SCHINDLER, CITY MANAGER
Agenda Item
5
Reviewed:
Initial
City Manager
QS
Finance Director
FROM: MICHAEL GRISSO, DIRECTOR OF PUBLIC WORKS
SUBJECT: REJECTION OF ALL BIDS FOR THE OLD TOWN IMPROVEMENTS
PROJECT
SUMMARY:
Staff is recommending that the City Council reject both bids received on November 5, 2024,
for the Old Town Improvements Project. The City received only two bids for this project,
both higher than the engineer's estimate, with the lowest being approximately 24% over
the engineer's estimate.
RECOMMENDATION:
It is recommended that the City Council reject the two bids received for the Old
Town Improvements Project, Capital Improvement Program Number 70254 and direct
the City Clerk to return all bid bonds.
FISCAL IMPACT:
The City's Capital Improvement Program budget for construction of the Old Town
Improvements project, Capital Improvement Program Number 70254 is $4,200,000, of
which approximately $3,780,000 is allocated for construction, with the remainder
designated as project contingency. The project is funded through a combination of
Community Development Block Grant Fund (Fund 120) and Land Sale Proceeds funds
(Fund 189).
CORRELATION TO THE STRATEGIC PLAN:
The construction of the Old Town Improvements project contributes to the fulfillment of the
City's Strategic Plan Goal A: Economic and Neighborhood Development. Specifically, the
project implementation of Strategy #2, which among other items, is to improve Old Town.
The project also contributes to fulfilling Goal B: Public Safety and Protection of Assets.
Specifically, the project implements Strategy #5a, which is to ensure continuous
maintenance and improvement of public facilities.
Docusign Envelope ID: 7B5985FB-4931-40EC-BD13-D7C13E1D8F93
City Council Agenda Report
Reject Bids for Old Town Improvements
January 7, 2025
Page 2
BACKGROUND AND DISCUSSION:
On October 1, 2024, the City Council adopted Resolution No. 24-64 approving the plans and
specifications and authorizing the City Clerk to publicly advertise for bids. On November 5,
2024, bids were opened and evaluated. The City received two bids as follows:
• Nationwide General Construction Services ................................ $ 4,681,280.00
• Gentry General Engineering, Inc ..............................................$ 5,776,764.00
Both bids are higher than the engineer's estimate, with the lowest being approximately 24%
over the engineer's estimate. Additionally, staff has determined that combining the Old Town
Improvements project with the Main Street Improvements project, may improve contractor
interest and efficiencies resulting in a more attractive project and a more competitive bidding
environment.
Pursuant to the City Attorney's review and Public Contracts Code Section 20166, staff
recommends the City Council reject both bids. Staff will return to City Council with
recommendations related to next steps for this project at a later date.
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Michael Grisso
Director of Public Works