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Committee recommends rejecting bids for Scaife building generator and cell-tower project after high bids
Summary
Staff recommended rejecting two bids for the Scaife facility generator and cell-tower replacement project because bids were well above the engineer's estimate; the committee voted unanimously to recommend rejection and asked staff to explore alternative scopes and phasing.
City staff told the Finance, Administration & Economic Development Committee that two bids received on May 20 for a combined Scaife Building emergency generator and cell-tower replacement were substantially higher than estimates and that market conditions and tariff-related uncertainties drove the variance.
Staff said the low bid exceeded the engineer's estimate by roughly 59% and recommended rejecting the bids to allow engineers and staff to develop an alternative scope and approach that will better align with the city's budget. Staff added that the existing generator (installed in 1996) can be supported by a portable backup if needed while the city redesigns options.
Committee discussion Committee members questioned why the generator and tower were packaged together. Staff and the project presenter said the plan had sought efficiencies by combining the two structures and building them at the same time; staff also said the city may re-evaluate whether the site needs the tower at current specifications and would study whether splitting the work could produce more competitive pricing.
Committee action The committee voted unanimously to recommend that the City Council reject all bids for the Scaife facility generator and cell-tower replacement (project MB3102) and to direct staff to return with alternative solutions. Committee members said they preferred re-scoping to requesting additional funds in the present cycle.
Why it matters The Scaife facility contains city communications and back-up power infrastructure. Staff described alternatives (temporary portable generator on standby) that would preserve continuity of operations while re-scoping occurs. Committee members said rejecting the bids now avoids committing tax dollars to an amount staff considers out of market range and directs staff to refine the scope and approach.
Next steps Staff will work with the city's engineer to develop an adjusted project scope or split the work into separate procurements, then return to the committee with revised cost estimates and procurement recommendations.
