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  Agenda Item   18.    
City Council Meeting
Meeting Date: 05/02/2023  
FROM: Bill Gallardo

Subject:
Rejection of Bids for the Senior Center & Pioneer Hall Roofs, CIP Project No. 7975
RECOMMENDATION
Reject all bids and direct the City Clerk to return all bid bonds. 
BACKGROUND/DISCUSSION
In the FY 22-23 Capital Improvement Program (“CIP”) is the Senior Center & Pioneer Hall Roofs, CIP Project No. 7975 (“Project”) located at the Senior Center, 500 Sievers Ave. (Exhibit A). This Project consists of but is not limited to, repairing and replacing sections of the existing roof system with City furnished roofing material for the existing Senior Center roof, as well as repairing, cleaning, and replacing damaged Spanish tile with in-kind tile for the Pioneer Hall roof per current building code.  
 
On March 13, 2023, the Final Plans and Specifications (“Bid Documents”) were advertised for bids on the CIPlist.com website and published in the Star Progress paper under the California Uniform Public Construction Cost Accounting (CUPCCA). A hard copy of the Bid Documents is available at the City Clerk’s office for review. There was one addendum to the Plans and Specifications, which provided further clarification to the Bid Documents.  
 
 On April 11, 2023, staff received only two bid proposals, summarized in Table 1 – Bid Summary:
Table 1 - Bid Summary
Bidder Number Bidder Name Bid Amount
1 Danny Letner, Inc. dba Letner Roofing Company $341,900.00
2 Best Contracting Services, Inc. $355,440.00
  Engineer's Estimate $180,000.00

Staff determined that the bid prices were excessive and exceeded the Engineer’s Estimate by almost a factor of two—additionally, only two bidders out of five potentially qualified bidders attended the mandatory pre-bid meeting. Therefore, staff recommends City Council reject all bids and return all Bid Bonds. Staff will re-evaluate the Bid Documents, make any necessary adjustments, and re-advertise the Project later.  
 
FISCAL IMPACT/SUMMARY
The Project includes repairing and replacing sections of the existing roof system with City furnished roofing material for the existing Senior Center roof and repairing and replacing damaged Spanish tile with in-kind tile for the Pioneer Hall roof per the most current building code.

Based on the bid review, staff recommends City Council reject all bids and return all Bid Bonds to the bidders. If approved, staff will update the Plans and Specifications and re-advertise the Project later.    

The total approved construction budget for the Project is $400,000 within the FY 2022-23 CIP, which includes $210,000 for Construction with a 15% contingency, $150,000 for roofing material, and $40,000 for Construction Engineering. The Project is FARP funded (Fund 182). Therefore, there is no fiscal impact on the General Fund.
RESPECTFULLY SUBMITTED:
William Gallardo, City Manager
Prepared by:   Ryan Chapman, P.E., Assistant City Engineer
Concurrence:  Michael Ho, P.E., Public Works Director/City Engineer
Attachments
Exhibit A - Location Map

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