To: MAYOR AND CITY COUNCIL
From: ANDREW WINJE, PUBLIC WORKS DIRECTOR
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REJECT ALL BIDS FOR THE PALLET SHELTER EXPANSION 2025 PROJECT, JOB NO. 2200/2201 AND DIRECT STAFF TO REVISE THE SCOPE OF THE PROJECT AND RE-ADVERTISE THE UPDATED CONSTRUCTION DOCUMENTS
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EXECUTIVE SUMMARY
On August 19, 2025, the City Council approved plans and specifications for the Pallet Shelter Expansion 2025 Project, Job No. 2200/2201 (Project). On November 5, 2025, three bids were received and publicly opened. The apparent low bid for the Project exceeds the available Project budget by roughly $500,000, without accounting for contingency and construction management costs. In addition, the City is in receipt of bid protests against the two lowest apparent bids. If the protests are substantiated, the potential award would be to an even higher bid amount and require substantially more funding. Therefore, staff recommends the City Council reject all bids and direct staff to work with the designer to value engineer certain elements of the Project to lower costs where possible and to re-advertise the Project.
BACKGROUND
On October 16, 2025, the Project was advertised. The three received bids were publicly opened on November 5, 2025. The apparent lowest bidder's base bid was reported as $1,494,950 at the time of the bid opening. Subsequent to bid opening, the City received bid protests against the two lowest apparent bids. If the protests are substantiated, the potential award to a higher bid would increase the gap in available Project funding. The funding available for construction of the Project totals only $1,098,298.
The initial $1,568,000 estimated cost was provided in a FY 2023-24 Budget Response Report (BRR) and included approximately $145,000 for civil design costs, $27,000 for electrical design cost and $300,000 for the direct purchase of 25 Pallet Shelter Units. This left an estimated $1.1 million for construction, which is insufficient to awa...
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