FOR THE COUNCIL MEETING OF OCTOBER 1, 2024
COUNCIL AGENDA REPORT
TO: City Council
FROM: Interim City Manager Alex Posada
BY: Director of Public Works Brett Fulgoni
SUBJECT: Adoption of a Resolution to Reject All Bids for The Santa Maria Sports Complex Project, Bid No. 2024-06
Description:
The City Council will consider approving the rejection of all bids for the Santa Maria Sports Complex Project, Bid No. 2024-06.
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
RECOMMENDATION:
Adopt a Resolution rejecting all bids for the Santa Maria Sports Complex Project, Bid No. 2024-06.
BACKGROUND:
The Santa Maria Sports Complex Project site is a 19.52 -acre site and is approximately located at the southwest corner of Stowell Road and Depot Street. The proposed project shall consist of four soccer f ields, a playground area, basketball courts, pedestrian pathways, and site landscaping.
DISCUSSION:
The project was publicly bid in accordance with the Public Contract Code through the City’s Planet Bids portal to receive bids for the project until 10:00 a.m., September 19, 2024, at which time three bids were submitted. The total bid amounts received for the project ranged from $15,612,848 to $181,776,338,707. The construction cost estimate prepared during design for the total bid was in the range of $15,000,000 – $16,000,000.
The Engineering Division staff reviewed the bids received and found that the to tal bid exceeds the available funding for the project.
In accordance with Section 22038 of the California Public Contract Code and Section 3 -
4.34 of the Santa Maria Municipal Code, staff recommends that the City Council reject all bids and authorize staff to clarify inconsistent bid items, modify the scope of the project, if necessary, and clarify the basis of selection in accordance with the available budget. 2 Alternative(s)
The recommended action to reject all bids would allow the project to be re -bid immediately. The current bid amount exceeds the budgeted funds for the project. Another alternative is to award the project to the current low bidder. This is not recommended since the current low bid exceeds the budgeted funds for the project. The City Council could also do nothing, and the bid would expire 60 days after bid opening, but it would also risk the chance of losing significant funding that requires appropriation for this calendar year.
Fiscal Considerations
If the City Council rejects all bi ds, staff intends to work on a modified project that is consistent with the current available funding. Staff proposes to work diligently to identify funds necessary to fund the construction contract, contract contingency, materials testing, and inspection.
Impact to the Community
Rejecting all bids will delay construction of the project by one to two months. The delay will have a minimal impact to the community.
ATTACHMENTS
A. Detailed Bid Results