REPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Jason Simpson, City Manager
Prepared by:Shannon Buckley, Assistant City Manager
Date:June 24, 2025
Subject:Agreement with SAS Construction for the Interior, Exterior Wall and Ceiling Drywall and Insulation, Bid Set “H”, on the New City Hall Project (CIP Project No. Z20006)
Recommendation
Approve and authorize the City Manager to execute a Public Works Construction Agreement with SAS Construction for an amount not to exceed $1,070,000.00 in such final form as approved by the City Attorney, authorize the City Manager to execute change orders not to exceed a 10% contingency amount of $107,000.00 for construction uncertainties and adjustments; and authorize the City Clerk to record the notice of completion once the entire scope of work is complete and return withheld retention to the contractor.
Background
Construction bid documents were prepared and the project was advertised for bid in accordance with the requirements set forth in the California Public Contract Code. On May 8, 2025, the City posted on PlanetBids the notice inviting bids for the City Hall project interior, exterior wall and ceiling drywall and insulation (CIP Project No. Z20006). On Wednesday, May 21, 2025, a mandatory site visit, and job walk was conducted at the project site. Following the job walk all responses to the notice inviting bid questions were posted in PlanetBids. During the open bid time frame 18 prime contractors reviewed the bid document and 10 contractors attended the mandatory job walk on May 21, 2025. However, on the bid date deadline of June 4, 2025, one bid was submitted on or before the deadline. The bid was reviewed in PlanetBids, examined, and declared in City Hall. The bid result was posted in PlanetBids shortly after staff’s review. Following the examination of the bid, the bidder, SAS Construction, was reviewed and interviewed by staff and determined complete.
SAS Construction Drywall and Insulation Agreement
Discussion
The SAS Construction bid satisfies all the scope of work requirements for the interior, exterior wall, and ceiling drywall and insulation notice inviting bid. Staff interviewed prospective bidders to learn why they did not submit a bid. Nearly all companies interviewed stated that the scope of work was too large and required a large financial cash flow. The informal interviews learned that these non-bidders were contemplating bid submittals over $1.5 million. With this information, staff are confident the SAS Construction bid is highly competitive.
The interior, exterior wall, and ceiling drywall and insulation work will begin immediately following the completion of all wiring and plumbing installation. In this construction agreement, the key elements will include the following items:
•Mobilization and Demobilization, Including Construction Schedules •(Not To Exceed 3% of Total Bid)
•Labor Material Bond and Performance Bond
•Drywall, Drywall Tape and Mud, and Drywall Finish Texture •Sound Insulation of all Walls, Ceilings and Third Floor Roof Fiscal Impact
Funding costs are included in the Fiscal Year 24/25 – 28/29 Capital Improvement Plan (CIP) budget, CIP Project #Z20006.
Attachments
Attachment 1 – Agreement
Exhibit A - Proposal
City Manager's Office