Administrative
Report
H.9., File # 24-0253 Meeting Date: 3/5/2024
To: MAYOR AND CITY COUNCIL
From: TED SEMAAN, PUBLIC WORKS DIRECTOR
TITLE
REJECT THE BID RECEIVED FOR THE INTERNATIONAL BOARDWALK SURFACE REPAIR PROJECT, JOB NO. 70810, AND DIRECT STAFF TO RE-ADVERTISE AND SOLICIT NEW BIDS FOR CONSTRUCTION
OF THE PROJECT
EXECUTIVE SUMMARY
On January 9, 2024, the City Council approved plans and specifications for the International Boardwalk Surface Repair Project, Job No. 70810 (Project). On February 21, 2024, only one bid was received and publicly opened. The bid of $2,368,823 exceeded the engineer’s estimate by $1,118,278. Staff recommends the City Council reject the bid and authorize the City Clerk to re-advertise the project after Public Works engineers adjust the bid specifications to allow for greater contractor participation.
BACKGROUND
This Project is included in the City’s Capital Improvement Program (CIP) budget and will replace existing asphalt concrete pavement with more attractive ADA-compliant pedestrian surfacing. The new pavers will also be traffic-rated to accommodate the daily vehicles that service boardwalk businesses. In addition, the Project will include new drainage elements that tie into the existing quay wall.
The design engineer’s construction cost estimate for the Project is $1,250,545. The Project is currently budgeted for $882,068 and staff has identified additional funding needed to complete the project at the estimated cost.
On January 25, 2024, the Project was advertised and bids were opened on February 21, 2024. The only bid received is valued at $2,368,823. It exceeds the project’s estimated cost by $1,118,278. The gap between the sole contractor’s bid and the design engineer’s estimate for certain Project line items indicates there is a misunderstanding of the work or a lack of bid competitiveness. A pre-bid meeting was held in the field to explain the Project, but, due to heavy rain during day, the meeting was lightly attended.
Days prior to the bid due date, staff sensed very few interested contractors and issued an addendum to the specification to allow contractors holding other appropriate licenses to bid on the job. The only bid ultimately received however, was from the general contractor, the license indicated in the original specification, that attended the field meeting. Staff believes a revised advertisement that targets a broader spectrum of licensed contractors will result in more competitive bids. As such, staff recommends that City Council reject the single bid and authorize the City Clerk to re-advertise the Project.
COORDINATION
Development of Project Plans and Specifications was coordinated by the Public Works Department. The Waterfront & Economic Development Department managed the public outreach portion of the project and shepherded the selection of the paver style and color scheme. Project construction will be coordinated by the Waterfront & Economic Development and Public Works Departments.
FISCAL IMPACT
There is no cost to reject the bid. The budget for the project is currently $882,068. The Engineer’s estimated cost of
H.9., File # 24-0253 Meeting Date: 3/5/2024
There is no cost to reject the bid. The budget for the project is currently $882,068. The Engineer’s estimated cost of construction is $1,250,545. Other capital monies for the funding gap have been identified by staff and will be appropriated through a budget modification resolution at the time of contract award, assuming more favorable bids are received following the second advertisement.
APPROVED BY:
Mike Witzansky, City Manager