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OPTION 2: REJECT ALL BIDS. DIRECT STAFF TO RE -BID. <br />STAFF NOTES <br />• This alternative was reviewed by the City Engineer, Attorney, and the Project Manager <br />Hakanson Anderson. The City is compliant from a legal/ contractual perspective to <br />move forward re -bidding. <br />■ We can reject bids for any reason, or no reason at all —as described in the <br />bid documents. <br />• This alternative will likely move the demolition process into the late/ fall winter months. <br />■ Arguments can be made for both benefits and drawbacks related to this <br />shift in time. On one side, dealing with snow, the cold, and frost may cause <br />issues/ additional costs for contractors. <br />■ On the other side, timing for many contractors project schedules works out <br />better for demos during the winter —we may get more bids*, snow can be <br />an advantage in keeping debris from moving as easily, and cold weather <br />keeps people inside —which may reduce conflicts with the neighborhood. <br />*Contractors typically have a harder time finding projects in the winter — <br />and will take contracts at lower prices, or bid projects they typically <br />wouldn't. <br />• Timing: if this alternative was selected, and the project was re -bid, the project schedule <br />would be amended. The substantial completion date would be changed (6-8 weeks <br />later). The final completion date would remain the SAME as originally scheduled (June <br />01, 2017). <br />POSITIVES <br />• Puts the City in -front of the bid process issue that took place —and avoids perception of <br />not being fair and transparent. <br />DRAWBACKS <br />• Low bid of $92,900 for a project that was estimated at $175,000 rejected. There is a risk <br />less bids, or less favorable bids, occur the second round —and the City ends up spending <br />more money to complete the project. <br />• Spending additional resources on re -bidding (less than $2,000 for Hakanson Anderson). <br />It should be noted, the City approved a contract with Hakanson Anderson for this <br />project. They are currently at $19,075 on a $28,000 contract (work order). Hakanson <br />has indicated this work would be done within the original contract. <br />3 I 3 <br />