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Dubuque Industrial Center South_Grading and Utilities 2012 Phase IMasterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Dubuque Industrial Center South Grading & Utilities - 2012, Phase I CIP 3602160 - Design, South Siegert Farm DATE: May 31, 2012 Dubuque bierd All-America City 1 2007 Sealed bids were received for the Dubuque Industrial Center South Grading and Utilities — 2012 Project, Phase I. City Engineer Gus Psihoyos and Economic Development Director Dave Heiar recommend rejection of all competitive bid proposals and that the City Council authorize staff to immediately re -bid the project and authorize the City Clerk to advertise for proposals. I concur with the recommendation and respectfully request Mayor and City Council approval. dbt)144 Michael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Gus Psihoyos, City Engineer David Heiar, Economic Development Director Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: Gus Psihoyos, City Engineer David Heiar, Economic Development Director SUBJECT: Dubuque Industrial Center South Grading & Utilities - 2012, Phase 1 CIP 3602160 - Design, South Siegert Farm DATE: May 31, 2012 INTRODUCTION Dubuque btrid All- America City hill! 2007 The enclosed resolution authorizes the rejection of all competitive bid proposals and authorizes the advertisement of proposals for the Dubuque Industrial Center South Grading & Utilities - 2012 Project, Phase 1. BACKGROUND The Dubuque Industrial Center South Grading & Utilities - 2012 Project, Phase 1 includes the mass grading of approximately 1,350,000 cubic yards of earthwork and the following work: • Temporary and permanent erosion control measures: Sediment basins; detention basins; vegetated swales; seeding; inlet and outlet projection; and energy dissipaters. • Grading: Clearing and grubbing topsoil removal; stockpile and spreading; removal of unsuitable material; subdrains; excavation; and embankment fill. • Deconstruction and demolition: Removal of existing structures; well abandonment; and septic system removal. • Storm sewer: Approximately 600 lineal feet of storm sewer pipe. • Sanitary sewer: 2,788 lineal feet of 8- and 12 -inch sanitary sewer pipe. BID RESULTS Competitive sealed bids were received on the Dubuque Industrial Center South Grading & Utilities — 2012 Project, Phase 1 on May 10, 2012. Eight bid proposals were received, with base bids ranging from $2,504,366.45 to $4,851,250.18. DISCUSSION In accordance with owner instructions, bids for the Dubuque Industrial Center South Grading and Utilities 2012 Phase I project were opened and read at 2:00 p.m. on May 10, 2012. Eight bids were received for this project. After reviewing the submitted bids, it was initially considered that the apparent low bid was submitted by C.J. Moyna & Sons, Inc. of Elkader, Iowa, in the amount of $2,504,366.45. Subsequently IIW Engineers issued a letter recommending award. However, after further review of the bid unit prices for the excavation and placement of top soil bid items, it was noted that those respective bid items contained very small unit prices and a larger than normal unit price for another bid item. The noted bid unit prices identify two potential scenarios that could result in disputes: 1. An apparent unbalance of unit prices relative to costs incurred to accomplish the work, which could be considered an irregularity; or 2. Confusion of the method of measurement and basis of payment for the Contractor's preferred method to accomplish the work because of the apparent duplication of some quantities of work items. The proposal from the low bidder included unit prices of $0.01 for two substantial earth - moving bid items 46 and 47 in the bid tabulation summary. This could mean that either the bidder does not intend to perform the work under these items or the bidder has transferred all of the costs for the work under these items into another bid item or bid items. Also the low bidder included a unit price for bid item 44 (excavation and spread unsuitable material) that is approximately double the price of all other bidders for the same item. It appears the bidder may have planned on transferring all of the quantities from either or both of items 46 and 47 into the quantity for item 44. IIW, PC cautions that this situation may leave the City susceptible to an increase in project costs, by anywhere from $100,000 to $200,000 (See IIW letter dated May 31, 2012). In addition, IIW, PC states "this situation may constitute what is referred to as an unbalanced bid ". The Iowa DOT defines an unbalanced bid as "a bid containing lump sum prices or unit bid prices which do not reflect reasonable actual costs plus a reasonable proportionate share of the bidder's anticipated profit, overhead costs, and other indirect costs to complete that item ". The City of Dubuque Standard Specifications Section 2, Information for Bidders, paragraph 2 -2.60 addresses the subject of Irregular Proposals. The last sentence in this paragraph states, "Bids which in the opinion of the City are considered unbalanced, may be deemed irregular." When this situation was brought to the attention of the City Engineer, City staff reviewed the information provided by IIW, PC. During this review it was discovered that a substantial error in one of the affected bid item quantities was made. This might have led to some of the confusion in the bid results. Further review discovered a sentence in Addendum #1 which appeared to be unclear or confusing and may have been a contributing factor to the unit pricing discrepancy discovered in the base bids. RECOMMENDATION We recommend that the City Council reject all competitive bid proposals received for the Dubuque Industrial Center South Grading & Utilities - 2012 Project, Phase I due to unbalanced bidding, the discrepancy in the specifications, and an error in one of the bid quantities. We also recommend that the City Council authorize staff to immediately re -bid the project and authorize the City Clerk to advertise for proposals. RE -BID PROJECT SCHEDULE The rebid schedule for the Dubuque Industrial Center South Grading & Utilities - 2012 Project, Phase I is as follows: Re- Initiate Public Bidding Process Publish Notice to Bidders, Advertise for Bids Pre -Bid Conference Receipt of Bid Proposals (Bid- Letting) Award Construction Contract Roadway Subgrade Areas Completed Final Project Completion Date June 4, 2012 June 8, 2012 June 14, 2012 June 21, 2012 July 2, 2012 July 1,2013 November 1, 2013 The project specifications also provide for a $750 /day cost mutually agreed between the City and contractor if the roadway subgrade areas are not completed by July 1, 2013, and /or the total project is not complete by November 1, 2013. The specifications also provide for an incentive of $1,000 per day for early completion of the subgrading for the streets and /or the total project. The total incentive for the completed project cannot exceed $50,000. The incentive for the street subgrading area cannot exceed $25,000 of this total incentive available for the overall grading project. BUDGET IMPACT The estimate of probable cost for Dubuque Industrial Center South Grading & Utilities — 2012 Project, Phase I is summarized as follows: Estimate Phase I: Construction Contract - Base $3,518,967 Phase I: Construction Contract - Alternates 405,080 Contingency 392,405 Consultant Services: Design, Construction Admin & Inspection 428,120 Total Phase I Cost $4,744.572 The project funding summary is as follows: CIP No. Fund Description 3602160 General Obligation (GO) Bonds (TIF Abated) Transfer from Unused Portion of North Siegert G.O. Bond Sale Total Project Funding Fund Amount $4,585,004 1,000,000 $5.585,004 The maximum budget for the project is $5,585,004 including preliminary and final design, environmental review and construction of public infrastructure (Phase II). The estimate of probable cost of Phase I include a 10% contingency and will also include several alternate bid items to allow for flexibility when reviewing bid proposals to ensure that the project remains within budget. The initial CIP had shown $990,548 in funding coming from land sales. With the savings from the North Siegert project, this funding source is not needed. Land sales revenue can now be used for other purposes including the annual contribution to the Greater Dubuque Development Corporation. The bond sale for this project has been initiated and the award of a bond sale is scheduled for the June 4 City Council meeting. ACTION TO BE TAKEN The City Council is requested to reject all bid proposals received and to authorize the City Clerk to re- advertise for proposals through adoption of the enclosed resolution for the Dubuque Industrial Center South Grading & Utilities - 2012 Project, Phase I. Prepared by Todd Irwin, Engineering Technician cc: Jenny Larson, Budget Director Bob Green, Water Department Manager Bob Schiesl, Assistant City Engineer May 31, 2012 Dave Heiar, Economic Development Director City of Dubuque 50 W. 13th Street Dubuque, IA 52001 Re: City of Dubuque Dubuque Industrial Center South Grading and Utilities 2012 Phase I Supplement to Award Recommendation Letter IIW Project No.: 11083 -01 Dear Dave: In accordance with owner instructions, bids for the Dubuque Industrial Center South Grading and Utilities 2012 Phase I project were opened and read at 2:00 p.m. on May 10, 2012. Eight bids were received for this project. After reviewing the submitted bids, it was determined the apparent low bid was submitted by C.J. Moyne & Sons, Inc. of Elkader, Iowa, in the amount of $2,504,366.45 and IIW issued a letter recommending award. However, further review of the unit prices bid for the work items of excavation and placement of topsoil materials contained very small unit prices for two bid items and a larger than normal unit price for another bid item. These bid prices identify two potential scenarios that could result in disputes: 1. An apparent unbalance of unit prices relative to costs incurred to accomplish the work, which could be considered an irregularity; or 2. Confusion of the method of measurement and basis of payment for the Contractor's preferred method to accomplish the work because of the apparent duplication of some quantities of work items. The specified method of measurement and basis payment for the bid items would result in substantially increased payment for the same work using the apparent low bidder's unit prices (unbalanced bid). Making an interpretation that would not increase those costs would require the adjustment of the bid item by limiting the maximum quantity for that item contrary to the specified method of measurement, which is not a legal procedure for bidding (other bidders were not given the same conditions). Given the possibility of either an unbalanced bid, or modification of bidding procedure to limit the cost of the low bidder's awarded contract, it may be in the City's best interest to reject all bids and rebid the project. We can be available to discuss the details of this analysis at your convenience. Sincerely, IIW, P.C. ?Sy)._ � 0ILnal itid2t n F. Wandsnider, P.E. Project Manager & Municipal Engineer Copy: Gus Psihoyos Dennis Waugh, P.E., S.E. President/Principal Civil & Structural Engineer IIW, P.C. www.iiwengr.com ARCHITECTURE CIVIL ENGINEERING CONSTRUCTION SERVICES ENVIRONMENTAL ENGINEERING LAND SURVEYING MUNICIPAL ENGINEERING STRUCTURAL ENGINEERING TRANSPORTATION ENGINEERING Dennis F. Waugh, PE /SE* Charles A. Cate, PE** Gary D. Sejkora, PE Michael A. Jansen, PE/SE Ronald A. Balmer, PE /SE /AIA John M. Tranmer, PLS / RLS Timothy J. Tranel, PE* John F. Wandsnider, PE Julie P. Neebel, PE James P. Kaune, PE Thomas J. Oster, PLS** Wray A. Childers, PLS Geoffry T. Blandin, PE Mark C. Jobgen, PE Lauren N. Ray, PE/SE* Bradley J. Mootz, PE/SE Cody T. Austin, PE* Marc D. Ruden, PE Mark R. Fassbinder, AIA* Michael A. Ruden, NCARB /AIA* Alice M. Ohrtmann, PE Craig J. Elskamp, AIA Robert W. Blok, PE Eric J. Helminiak, PE /SE* Steven J. Munn, PE Jeffrey J. Brandt, PLS / RLS * LEED AP ** Retired 4155 Pennsylvania Avenue, Dubuque, IA 52002 -2628 ♦ IPj 563.556.2464/800.556.4491 ♦ [F] 563.556.7811 ENGINEERS. ARCHITECTS. SURVEYORS. jiw RESOLUTION NO, 137 -12 REJECTING ALL COMPETITIVE BID PROPOSALS RECEIVED FOR THE DUBUQUE INDUSTRIAL CENTER SOUTH GRADING & UTILITIES - 2012 PROJECT, PHASE I AND DIRECTING THE CITY CLERK TO RE- ADVERTISE FOR BIDS FOR THE PROJECT Whereas, competitive sealed bid proposals have been submitted by contractors for the Dubuque Industrial Center South Grading & Utilities - 2012 Project, Phase I (the Project) pursuant to Resolution No. 78 -12 and Notice to Bidders published in a newspaper published in the City of Dubuque, Iowa on the 19th day of March, 2012. Whereas, said competitive sealed proposals for the Project were opened and read on the 10th day of May, 2012; and Whereas, the City Council has deemed it advisable to reject all bid proposals for the Project. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. All bid proposals for the Project are hereby rejected. Section 2. The City Clerk is authorized and instructed to return the bid deposits of the unsuccessful bidders for the Project. Section 3. The City Clerk is hereby directed to re- advertise for bids for the Project by publishing the attached Notice to Bidders to be published in a newspaper having general circulation in the City of Dubuque, Iowa, which notice shall be published not less than four but not more than forty -five days before the date for filing bids before 2:00 p.m. on the 21st day of June, 2012. Bids shall be opened and read by the City Clerk at said time and will be submitted to the City Council for final action at 6 :30 p.m. on the 2nd day of July, 2012, in the Historic Federal Council Chambers (second floor), 350 West 6th Street, Dubuque, Iowa. Passed, approved and adopted this 4th day of June , 2012. Attest: Kevin rnstahl, Ci y Clerk Roy D. Buol, Mayor NOTICE TO BIDDERS CITY OF DUBUQUE PUBLIC IMPROVEMENT PROJECT DUBUQUE INDUSTRIAL CENTER SOUTH GRADING & UTILITIES - 2012, PHASE I Time and Place for Filing Sealed Proposals. Sealed bids for the work comprising each improvement as stated below must be filed before 2:00 p.m. on June 21, 2012, in the Office of the City Clerk, City Hall - First Floor, 50 West 13th Street, Dubuque, Iowa. Time and Place Sealed Proposals Will be Opened and Considered. Sealed proposals will be opened and bids tabulated at 2:00 p.m. on June 21, 2012, at City Hall - Conference Room B, 50 West 13th Street, Dubuque, Iowa, for consideration by the City Council (Council) at its meeting on July 2, 2012. The City of Dubuque, Iowa, reserves the right to reject any and all bids. Time for Commencement and Completion of Work. Work on each improvement shall be commenced within 10 days after the Notice to Proceed has been issued based on the following schedule: Roadway subgrade areas completed by July 1, 2013, and final completion by November 1, 2013. Bid Security. Each bidder shall accompany its bid with a bid security as security that the successful bidder will enter into a contract for the work bid upon and will furnish after the award of contract a corporate surety bond, acceptable to the governmental entity, for the faithful performance of the contract, in an amount equal to one hundred percent of the amount of the contract. The bid security shall be in the amount of ten percent (10 %) of the amount of the contract and shall be in the form of a cashier's check or certified check drawn on a state - chartered or federally chartered bank, or a certified share draft drawn on a state - chartered or federally chartered credit union, or the governmental entity may provide for a bidder's bond with corporate surety satisfactory to the governmental entity. The bid bond shall contain no conditions excepted as provided in this section. Contract Documents. Copies of the plans and specifications prepared by IIW, PC, are available from Tri -State Blueprint & Framing Co. /Rapids Reproduction, 696 Central Avenue, Dubuque, IA 52001. Telephone number: 563 - 556 -3030. No plan deposit is required. Copies of the construction documents may be viewed at: the Office of Economic Development, City Hall - Second Floor, 50 West 13th Street, Dubuque, Iowa; or at the Office of IIW, P.C., 4155 Pennsylvania Avenue, Dubuque, Iowa. If there are questions and /or additional information is needed, contact IIW Project Manager John Wandsnider, PE at j.wandsnider @iiwengr.com or by calling (563) 556 -2464. Project information will also be posted on the City's website at www.cityofdubuque.orq. Preference for Iowa Products and Labor. By virtue of statutory authority, preference will be given to products and provisions grown and coal produced within the State of Iowa, and to Iowa domestic labor, to the extent lawfully required under Iowa statutes. Sales Tax. The bidder should not include sales tax in its bid. A sales tax exemption certificate will be available for all material purchased for incorporation in the project. General Nature of Public Improvement. Dubuque Industrial Center South Grading & Utilities — 2012 Project, Phase I The Dubuque Industrial Center South Grading & Utilities — 2012 Project, Phase I includes the grading of approximately 1,350,000 cubic yards of excavation. The project includes: — Temporary and permanent erosion control measures: Sediment basins; detention basins; vegetated swales; seeding; inlet and outlet projection; and energy dissipaters. — Grading: Clearing and grubbing topsoil removal; stockpile and spreading; removal of unsuitable material; subdrains; excavation; and embankment fill. — Deconstruction and demolition: Removal of existing structures; well abandonment; and septic system removal. — Storm sewer: Approximately 600 lineal feet of storm sewer pipe. — Sanitary sewer: 2,788 lineal feet of 8- and 12 -inch sanitary sewer pipe. Pre -Bid Conference. Each prospective bidder is encouraged to attend the Pre -Bid Construction Conference to be held at 10 AM Central Time on June 14, 2012, at the Historic Federal Building Council Chambers (second floor), 350 West 6th Street, Dubuque, Iowa. Attendance by all prospective bidders is not mandatory but highly recommended. Published in the Telegraph Herald, June 8, 2012. NOTICE TO BIDDERS CITY OF DUBUQUE 1 PUBLIC IMPROVEMENT PROJECT DUBUQUE INDUSTRIAL CENTER SOUTH GRADING & UTILITIES - 2012, PHASE Time and Place for Filing Sealed Pro- posals. Sealed bids for the work comprising each improvement as stated below must be 1 filed before 2:00 p.m. on June 21, 2012, in the Office of the City Clerk, City Hall - First Floor, 50 West 13th Street, Dubuque, Iowa. Time and Place Sealed Proposals Will be Opened and Considered. Sealed proposals will be opened and bids i tabulated. at 2:00 p.m. on June 21, 2012, at City Hall - Conference Room B, 50 West 13th , Street, Dubuque, Iowa, for consideration by the City Council (Council) at its meeting on July 2, 2012. The City of Dubuque, Iowa, reserves the right to reject any and all bids. Time for Com- mencement and Completion of Work. Work on each improvement shall be commenced within 10 days after the Notice to Proceed has been, issued based on the 1 following schedule: Roadway subgrade areas completed by July 1, 2013, and final completion by Novem- ber 1, 2013. • Bid Security. Each I bidder shall accom- pany its bid with a bid security as security that the successful bidder will enter into a contract for the work bid upon and will furnish after the award of contract a corporate surety. bond, accept -' able to the 'govern -. mental entity, for the faithful performance of the contract, in an amount equal to one hundred percent of the amount of the con- tract. The bid security shall be in the amount of ten percent (10 %) of the amount of the 1 contract and shall be in the form of a cashier's check or certified check drawn on a state- I chartered or federally chartered bank, or a certified_ share draft drawn on a state - chartered or federally chartered credit union, or the governmental entity may provide for a bidder's bond with . corporate surety satisfactory to the governmental entity. The bid bond shall contain no conditions excepted as provided in this section. Contract Docu- ments. Copies of the plans and specifi- cations prepared by IIW, PC, are available from Tri -State Blue- I print & Framing Co./ Rapids Reproduction, 696 Central Avenue, Dubuque, IA 52001. Telephone number:563- 556 -3030. No plan deposit is required. Copies of the construction docu- ments may be viewed at: the Office of Economic Develop- ment, City Hall - Second Floor, 50 ,West 13th Street, Dubuque, 1 Iowa; or at the Office of IIW, . P.C., 4155 Pennsylvania Avenue, Dubuque, Iowa. If there are questions and /or additional information is needed, contact IIW Project Manager John Wandsnider, PE at j.wandsnider@iiwengr. corn or by calling (563) 556 -2464. Project information will also be posted on the City's website at www.cityofdubuque.org. Preference for Iowa Products and Labor. By virtue of statutory authority, preference will be given to products and pro- visions grown and 'coal produced within the State of Iowa, and to Iowa domestic labor, to the extent lawfully required under Iowa statutes. Sales Tax. The bidder should not include_ sales tax in its bid. A sales tax exemption certificate will be available for all material purchased for incorporation in the project. General Nature of Public Improvement. Dubuque Industrial Center South Grading & Utilities - 2012 Project, Phase I The Dubuque Industrial Center South Grading -& Utilities - 2012 Project, Phase I includes the grading of approximately. 1,350,000 cubic yards of excavation. The project includes: Temporary and permanent erosion control measures: Sedi- ment basins; detention basins; vegetated swales; seeding; inlet and outlet projection; and energy dissipaters. -- Grading: Clearing and grubbing topsoil removal; stockpile and spreading; removal of unsuitable material; subdrains; excavation; and embankment fill. -- Deconstruction and demolition: Removal of existing structures; well abandonment; and septic system removal. - Storm sewer: Ap- proximately 600 lineal feet of storm sewer pipe. -- Sanitary sewer: 2,788 lineal feet of 8- and 12 -inch sanitary sewer pipe. Pre -Bid Conference. Each prospective bid- der is encouraged to attend the Pre -Bid Construction Confer- ence to be held at 10 AM Central Time on June 14, 2012, at the Historic Federal Build- ing Council Chambers (second floor), 350 West 6th Street,. Dubuque, Iowa. Atten- dance by all prospective bidders is not mandatory but highly recommended. Published in the Telegraph Herald, June 8,2012. it 6/8 STATE OF IOWA {SS: DUBUQUE COUNTY CERTIFICATION OF PUBLICATION I, Suzanne Pike, a Billing Clerk for Woodward Communications, Inc., an Iowa corporation, publisher of the Telegraph Herald,a newspaper of general circulation published in the City of Dubuque, County of Dubuque and State of Iowa; hereby certify that the attached notice was published in said newspaper on the following dates: June 08, 2012, and for which the charge is $60.72. (---9G0DV.AA.AAJZ._ 131(.11) Subscribed to before me, otary Public in and for Dubuque County, Iowa, this ,'M day of , 2 %Z . Notary Public in and for Dubuque County, Iowa. Commission R Plumbgi 954SF-2r -. Kevin Firnstahl - "Contact Us" inquiry from City of Dubuque website From: "Citizen Support Center" <dubuqueia @mycusthelp.com> To: <kfirnsta @cityofdubuque.org> Date: 6/4/2012 2:57 PM Subject: "Contact Us" inquiry from City of Dubuque website Page 1 of 1 RECEIVED 12 JUN -4 PM 3: 42 Contact Us Name: Allen R. Taylor Phone: (563) 245 -1442 Ext 8 Email: ataylor @cjmoyna.com City Clerks Office Dubuque: IA City Department: City Council Message: John P Moyna President of C.J. Moyna & Sons, Inc. at tonights City Councils meeting will ask the City Council to consider removing Consent Item 11 for separate discussion and consideration. Attached is information supporting this request. file: / //C :/ Users /kfirnsta/AppData/Local/ Temp /XPgrpwise /4FC CC CD2DB Q_D ODB Q_PO 1... 6/4/2012 This Email is to bring to the attention of the Mayor and City Council our concerns in regards to Consent Item # 11, Dubuque Industrial Center South- Grading & Utilities Bid Rejection. The City Manager has recommended the City Council reject all competitive bid proposals on the Dubuque Industrial Center South- Grading & Utilities Bids. C.J. Moyna & Sons, Inc. plans to attend the council meeting and request Item # 11 be removed from the Consent Items and discussed separately for the following reasons. Eight qualified construction companies submitted bids on the Dubuque Industrial Center South Grading & Utilities. All Bidders had access to the same plans, Contract Documents, including addendums and the site of work. All bidders have the responsibility to satisfy themselves as the nature of work and all reasonably ascertainable conditions which may affect their performance under the Contract. C.J. Moyna & Sons, Inc. was low bidder on this project. Our bid was over $900,000, below the engineer's estimate and approximately $100,000 below the second bidder. The bid was properly completed using the Standards Specification dated March 31, 1995, the Standard Details of the City of Dubuque and in accordance with the special provisions of the project. At the pre -bid meeting the question was raised by other contractors how topsoil excavation and spread would be paid vs. stockpile and spread of topsoil. The matter was discussed and Addendum 1 was issued, clearly defining how topsoil excavation and spread would be paid under the contract. Our team worked diligently and in good faith to provide the City of Dubuque with a competitive bid. In the course of putting the bid together, our team carefully reviewed the specifications, including the addendums, and developed a plan we felt would provide the City the lowest cost, while maintaining the high standards of quality our Company is noted for. The City engineer questioned why bid item 46- Topsoil -Strip and & Stockpile and 47- Topsoil —Spread unit price was only $.01. In our approach the project, we did not plan to perform work under these pay items. Therefore $.01 was used because the bid specifications state "Any proposal may be deemed irregular which does not contain prices opposite to each of several items for which there is a quantity exhibited." C.J. Moyna & Sons, Inc's bid did not intend to transfer quantities on any items. We used bid quantities per items as per the specifications. In the discussion of item #44, the engineer states "44 (excavation and spread unsuitable material) that is approximately double the price of all other bidders for the same item" is incorrect. Only two of the eight bidders were less than 500 of the bid submitted by C.J. Moyna & Sons, Inc on item 44. The average price of item #44 of the top six bidders was 29% below our bid. The second highest bidder on item 44 used a price of $2.90 which was only 17% below our bid number. The bid tabulations showing the unit prices used by each bidder on all items of the project have already been released to the bidders. This places the low bidder at a disadvantage, allowing the other bidders the ability to adjust their prices accordingly if the City rejects the bids and rebids the project. The City has the right to reject any and all bids, if in its judgment it is for the best interest of the City to do so. We respectfully request the City Council carefully consider all factors in determining what is in the best interest of the City prior to deciding this issue. Please consider the cost associated with re- bidding a project and the risk of an increase in the low bid. To preserve the integrity of the Competitive Bidding Process, it is not in the best interest of anyone to reject a bid after the bid tabs have been released.