On October 11, 2019 one (1) competitive sealed bid was opened by the City. The ITB was for the removal and replacement of the City’s existing fuel pump canopy station. The project was identified in the February 20, 2019 TANK Engineering Analysis.
Subsequent to the analysis, staff requested proposals from two (2) contractors for budgetary purposes. Both contractors submitted proposals of just under $50,000. The budget number included in the City’s 2019/2020 Capital Improvement Program was $50,000 as a result of the two submissions. In addition, one of the contractors that submitted a proposal was Sarlo South LLC. As a result, staff contacted the bidder for an explanation of the inflated bid amount. The increase in the cost of steel would NOT justify a request by staff to City Council for approval of the bid and award of the contract. As a result, staff has determined that the ITB bid and award should be rejected and the project be included in the 2019 Fleet and Utility Purchasing Warehouse-Building Construction, Material and Equipment Storage Improvements Project. It is anticipated that with the inclusion of the canopy project, an “economy of scale” will result and a cost that compares more favorably with the two (2) original proposals submitted and staff’s CIP budget number.