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Council rejects over-budget Cabrillo Mole temporary-facilities bid, authorizes negotiated contract up to $1.215M
Summary
Staff said the only bid for temporary facilities and utility work on the Cabrillo Mole came in at $1,658,470 and exceeded the project budget; council rejected the bid and authorized staff to negotiate a reduced scope with Jordall Construction not to exceed $1,215,000.
City staff briefed council that the temporary-facility and utility-installation procurement for the Cabrillo Mole rehabilitation phase 2 closed with a single local bid from Jordall Construction for $1,658,470, which staff said substantially exceeded the project budget.
Project staff explained that, under the Public Contract Code cited in the hearing, the council may reject bids and adopt a resolution allowing the project to be performed more economically using a combination of day labor, in-house work and negotiated contracts. Staff said rescoping and assigning some deck and electrical work to city forces could reduce costs by about $425,000. As staff summarized, “The bid price was $1,658,470 and that exceeded the project budget, significantly.”
Council voted to reject the sole bid, adopt the resolution declaring the project can be performed economically by day labor or other means, and authorized the city manager to negotiate a revised scope and enter a contract agreement with Jordall Construction for an amount not to exceed $1,215,000. The motion passed unanimously. Staff said the work would prioritize underground utility installation before peak visitor season so the project’s most disruptive elements are completed prior to Memorial Day.
Council members asked about contractor capacity and Public Works staffing; staff said they plan to reassign some city crews and hire limited additional staff or short-term contractors to free up capacity during the work.
