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HomeMy WebLinkAboutC24460 Utility Undergrounding ADCITY OF PALM DESERT C-24460 CITY MANAGERS OFFICE STAFF REPORT TO: Honorable Mayor Ferguson and Council Members SUBJECT: PALM DESERT HIGHLANDS UTILITY UNDERGROUNDING ASSESSMENT DISTRICT No. 04-01 BID RESULTS SUBMITTED BY: Pat Conlon, Special Projects Administrator DATE: February 9, 2006 RECOMMENDATION By Minute Motion: 1. REJECT the sole bid by Stronghold Engineering Inc. 2. AUTHORIZE the project to be advertised for re -bid. BACKGROUND On January 11, 2006 the City Clerk opened the single bid submitted by Stronghold Engineering Inc. (Riverside, CA) for the amount of $4,367,685.00. This bid was substantially higher than the last Engineer's estimate. Using this bid price along with the other District costs would result in a per parcel assessment of over $32,000.00, which is unacceptable. This $32,000.00 per parcel estimate would result in a $2,500.00 per year cost to the residents in this District. It is unclear why more contractors did not bid on this project. Six contractors obtained plans for this project, yet only one submitted a bid. It is the Staff recommendation that when only one bid is submitted and this sole bid is 60% over the Engineer's estimate that we reject the bid and re -advertise. Submitted by: Fa-ta5-v4.-„, Pdt Conlon Special Projects Administrator Reviewed and Concur: Carlos Orte City Manager G C S» fgrWar ConlonWDHJghlands Bid Results 7-fl-2006doc