FAIRFAX TOWN COUNCIL MEETING
STAFF REPORT
AGENDA ITEM #3
MEETING DATE: September 4, 2024
PREPARED FOR: Mayor and Town Council
PREPARED BY: Loren Umbertis, Public Works Director
SUBJECT: Adopt a Resolution Rejecting all Bids for the 2024 Slurry Seal Project and Reissue a Notice Inviting Bids.
RECOMMENDATION
Adopt a Resolution by the Town Council to Reject all Bids for the 2024 Slurry Seal Project and re-issue a Notice Inviting Bids.
BACKGROUND
On January 24, 2024, the Fairfax Town Council was presented a Five-Year Plan for road improvements.
The Year 1 plan focused on applying slurry seal to several streets within the Town to prolong their usable life. Working with Pavement Engineering Inc, the project was estimated to cost approximately $550,000.
A Notice Inviting Bids was issued in late July 2024, with a bid deadline of August 13, 2024.
DISCUSSION
Three bids were received, with the lowest bid from VSS International at $937,000, far exceeding the budgeted amount. Given the significant disparity between the bids and the engineer’s estimate, and considering the inability to adjust bids post-opening, staff recommends rejecting all bids. This approach will allow for a comprehensive review of the project scope to align with budget constraints.
Re-issuing a Notice Inviting Bids at a later date is the most prudent course of action to ensure fiscal responsibility. With this, staff anticipates scheduling the work for Spring and Summer 2025.
Bid results:
VSS International $937,000
Always Paving Inc $1,193,318
Pavement Coatings Inc $1,292,129
FISCAL IMPACT
Rejecting all bids will not incur any immediate additional costs. However, re-evaluating the project and re-issuing a Notice Inviting Bids will require additional funding. The original contract has remaining funds available that will cover approximately $3500. It is anticipated that approximately $1500 in additional funding may be necessary for the efforts involved in value engineering and re-bidding efforts.
ATTACHMENTS
Resolution
2 RESOLUTION NO. 24-
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF FAIRFAX REJECTING ALL BIDS FOR THE 2024 SLURRY SEAL PROJECT AND DIRECTING STAFF TO RE-ISSUE A NOTICE INVITING BIDS
WHEREAS, on January 24, 2024, the Town Council of the Town of Fairfax was presented with a FiveYear Road Improvement Plan, which included slurry seal application on various streets and roads within the Town as part of Year 1 of the Plan; and
WHEREAS, the Town of Fairfax, in cooperation with Pavement Engineering Inc., developed a project scope and construction estimates, which anticipated the total project cost to be approximately $550,000; and
WHEREAS, a Notice Inviting Bids was issued in late July 2024, with a bid deadline of August 13, 2024, for the 2024 Slurry Seal Project; and
WHEREAS, three bids were received, with the lowest bid from VSS International in the amount of $937,000, which significantly exceeds the engineer’s estimate and the budgeted amount for the project; and
WHEREAS, the Town Council finds that it is in the best interest of the Town to reject all bids to allow for a comprehensive review of the project scope, aligning it with the Town’s budget and fiscal policies; and WHEREAS, the Town Council further finds that re-issuing the Notice Inviting Bids at a later date will ensure that the project is executed within the Town’s financial means, with the anticipated scheduling of work for Spring and Summer of 2025.
NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of Fairfax as follows:
1. The Town Council hereby rejects all bids received for the 2024 Slurry Seal Project.
2. The Town Council directs staff to review the project scope, in consultation with Pavement Engineering Inc., to identify potential cost-saving measures and value engineering opportunities.
3. The Town Council further directs staff to re-issue a Notice Inviting Bids for the revised project scope, with the intention of scheduling the work for Spring and Summer of 2025.
PASSED AND ADOPTED by the Town Council of the Town of Fairfax at a regular meeting held on the 4th day of September 2024, by the following vote:
AYES:
NOES:
ABSENT:
ATTEST
__________________________________ ___________________________________
BARBARA COLER CHRISTINE FOSTER
MAYOR OF FAIRFAX DEPUTY TOWN CLERK