Staff Report – 2024-25 Slurry Seal Project-rejection of Bid Page 1 of 2
STAFF REPORT
TO: Mayor and Members of the City Council
FROM: Brad Donohue, Director of Public Works and Planning VIA: Dan Barros, City Manager
MEETING DATE: June 25, 2025
SUBJECT: 2024-2025 Slurry Seal Project – Reject All Bids
RECOMMENDATION
Staff recommends that the City Council make the following motion:
MOTION REJECTING ALL BIDS FOR THE 2024-2025 SLURRY SEAL PROJECT PURSUANT TO CEQA GUIDELINE 15301
COUNCIL ADOPTED VALUES
By moving to reject all bids, the City Council is acting responsibly , in that by rejecting all bids for the 2024-2025 Slurry Seal Project Project, the Town can value engineer and revise the project to be more cost efficient.
BACKGROUND
Staff prepared project plans and bid specifications (“Bid Package”) for the 2024-2025 Slurry Seal Project (“Project”) and on April 23, 2025, the City Council by motion, approved the plans and authorized staff to advertise the Bid Package.
Two (2) bids were received and publicly opened on May 20, 2025. One bid received from American Asphalt Inc (Apparent Low Bid) with a base bid amount $520,657.00. The second bidder is VVS International with a base bid amount of $557,483.00. Both bids exceeded the Engineer’s Estimate of $258,114.50 for the base bid scope of work. The higher-than-expected bid prices may be due to several factors including contractor supply and demand, and the size of the project being relatively small sometimes yields higher pricing.
AGENDA ITEM #5
Staff Report – 2024-25 Slurry Seal Project-rejection of Bid Page 2 of 2
ANALYSIS
Pursuant to Colma Municipal Code 1.06.290 (h) and Public Contract Code section 22038, a legislative body may reject any bids presented for a project. Staff now recommends that all bids for the 2024-25 Slurry Seal Project be rejected and direction to stall to re-evaluate and value engineering the project to conform to proposed project budget for the 2024-25 Annual Roadway Rehabilitation CIP project and rebid the project with City Manager approval to go to bid.
FISCAL IMPACT
There is no fiscal impact associated with this action.
ENVIRONMENTAL
The City Council’s motion to reject bids and authorize the City Manager to approve the revise plans and specifications for roadway maintenance and repairs is exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guideline 15301 Class 1 ( c ), Existing Facilities - highways and streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities (this includes road work for the purpose of public safety, and other similar alterations that do not create additional automobile lanes).
ALTERNATIVES
City Council can move forward and accept the lowest responsible bid. This action is not recommended, staff believes that by rescoping the project, it will be within the proposed budget and the work that will be eliminated, slurry sealing will be added to next year’s project, thus increasing the project size and making it more competitive to these specialized paving contractors.
SUMMARY
Staff recommends that the City Council move to reject all bids for the 2024-2025 Slurry Seal Project and direct staff to revise project plans and specifications to align with the Town’s 2024- 2025 Annual CIP Roadway Rehabilitation budget.