City Council Agenda Report
TO: Mayor Clauzel and Members of the City Council
FROM: Ken Irwin, City Manager
BY: Fernando Ulloa, City Engineer
MEETING DATE: January 16, 2024
ITEM NO: 6.8
SUBJECT: Reject all bids for the Well #8 Tank Recoating Project and directing staff to re-advertise at a later date.
RECOMMENDATION
Motion to Reject all bids for the Well #8 Tank Recoating Project and directing staff to readvertise at a later date.
BACKGROUND
The Well #8 Tank Recoating Project consists of the preparation of surfaces, performance and completion of recoating all interior surfaces of a 1.3 MG water storage tank.
ANALYSIS
The Well #8 Tank Recoating Project design was completed in Fall 2024 and was subsequently advertised for construction. The Project was advertised on CIP List, the City’s website, and the Patterson Irrigator Newspaper. Although there was ample time allowed and there were multiple contractors on the plan holder’s list, the City only received two bids. The two bids received were from Euro Style Management and Farr Construction Corp. Unfortunately, the two bids had a difference of almost $900,000 and subsequently the low bidder, Euro Style Management, requested to withdraw their bid.
The Engineer’s Estimate for construction was expected to be around $348,000. The bid from Euro Style Management is $565,000 and the bid from Farr Construction Corp is $1,478,618.00.
The bid construction cost is substantially over the Engineer’s Estimate and the difference in the bid proposals needs to be evaluated.
It is staff’s recommendation that the City Council reject all bids per bidding regulations. This will enable staff to restructure the project bid documents and review re-bidding options to increase the number of potential bidders. Staff is currently reviewing bid documents and determining to re-bid the project in Summer 2024. This should allow the chance of potential bidders to bid the project early in the construction season and bring the cost of the construction within reasonable price through competitive bidding.
FISCAL IMPACT
There is no Fiscal Impact at this point.