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City staff recommends rejecting lone $631,155 bid for 2026 seal coat project
Summary
Staff recommended rejecting the single bid for the 2026 seal coat streets resurfacing contract after the only offer came in at $631,155 versus an estimate of $385,000; council discussed limited contractor interest and possible strategy shifts such as moving funds to asphalt overlays or exploring in-house seal coating.
City staff asked the council to reject a single bid for the 2026 seal coat streets resurfacing contract after the lone proposal arrived at $631,155—about 80% above the city's estimate of $385,000.
The presenter said the city received one bid and, without available funds to cover the higher price, recommended rejecting it. "Being 80% more than the estimate, and not having the available funds, we recommend that we reject the bid," the staff member said.
Council members discussed reasons contractors may avoid short urban seal-coat jobs, noting high mobilization costs for small-block work compared with longer county road projects. Staff flagged that one previously used vendor is out of business and suggested the city may need a broader strategy, including shifting funds toward asphalt overlays or considering self-performing seal coat if staffing and equipment investments were feasible.
Staff cautioned that moving from seal coat to asphalt overlay reduces linear footage covered for the same budget and would leave some nearing end-of-life streets requiring patchwork or more intensive treatments. The item was framed as part of a larger infrastructure funding conversation to be addressed during the next CIP budget season.
No final vote was recorded in the work session; staff asked to move the matter forward as a consent item for the next regular meeting.
