HomeMy WebLinkAboutCC 2025-10-14_Reject Bids for Roof RepairsItem 9.g.
MEMORANDUM
TO: City Council
FROM: Bill Robeson, Assistant City Manager/Director of Public Works
BY: Theresa Wren, Capital Improvement Projects Manager
SUBJECT: Reject Bids for Roof Repairs on City Structures, PW 2025-08
DATE: October 14, 2025
RECOMMENDATION:
1) Adopt a Resolution rejecting all bids received for the Roof Repairs on City Structures
(PW 2025-08), directing staff to pursue urgent repairs through informal solicitation, and
re-bidding reroofing in Spring 2026; and
2) Find that the proposed action is categorically exempt from CEQA review under State
CEQA Guidelines section 15301 (Class 1 – Existing Facilities), and alternatively, State
CEQA Guidelines section 15(c)(2) and 15061(b)(3), as having no potential to cause a
significant effect on the environment.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The FY 2025-26 budget allocated $370,000 for the CIP to address City Structure Roof
Repairs. Of this total budget, $170,000 was estimated for repair/replacement of the
balcony, deck, and siding at City Hall. The other $200,000 of this CIP was allocated to
repair or replace the roofs on seven City facilities. The Engineer’s Estimate was $136,905
for roof repairs at four City facilities, and roof replacement at three City facilities . The
lowest bid received was $359,868, which is 163% higher than the estimate, and 80% over
budget.
BACKGROUND:
Roofs on two City facilities leaked after last year’s rainy season, and staff observed
potential roof issues at other facility locations. Subsequently, the roofs of seven facilities
were inspected: City Hall, Council Chamber, 1467 Ash Street/ Soto Concession
Restrooms, Fire Department Station #1, Police Department, and the Woman’s Club. Staff
contracted with Wick’s Roofing to conduct an assessment of the roofs at these seven
locations. A report was provided for each location, which included findings, recommended
actions, estimates, and photos.
Page 182 of 353
Item 9.g.
City Council
Reject Bids for Roof Repairs on City Structures, PW 2025-08
October 14, 2025
Page 2
The reports provided were used to develop a Bid Book. The Bid Book was used to solicit
appropriately licensed roofing or General Contractors to bid on the repairs and/or
replacement of roofs at the seven facilities. Old City Hall was shown as a Bid Alternate
because the direction regarding the status of the building is still undecided and under
consideration. The Bid Book was sent to six local contractors, bid boards, advertised in
the newspaper and posted on the City’s website. Four contractors from th e Los Angeles
area attended the pre-bid meeting. No local contractors were present nor did any local
contractors bid on the project.
Bids were received from two bidders by the bid opening date of September 25th at 2:00
pm:
ANALYSIS OF ISSUES:
The bids received were 163% and 299% over the Engineer’s Estimate. The Bid Summary
demonstrates a wide variation between line items from the two bidders. City Staff
contacted Southland Roofing, Inc., the lowest apparent bidder, and indicated that the City
wanted to remove two of the complete re-roof locations from the project since it was
significantly over the available budget. Southland Roofing Inc. indicated that it is not
interested in the project if any of the full re-roofs are removed because it would affect the
cost-effectiveness of mobilizing its crew to Arroyo Grande.
The repairs to the Police Department and the Fire Department are urgently needed and
staff can pursue those through on-call or request for quotes. The City Hall roof repairs will
be folded into the City Hall Balcony and Siding Project. The remaining roofs will be rebid
in the spring with the anticipation that local bidders may be more available during the
usually less busy time immediately following the rainy season.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Reject all bids received for the PW 2025-08 Roof Repairs on City Structures, direct
staff to pursue urgent repairs on Police Department and Fire Department, and
rebid the re-roofing on remaining structures in Spring 2026;
2. Accept the lowest bid and provide additional funding; or
3. Provide other direction to staff.
Engineer's
Estimate
Southland Roofing,
Inc.
Best Contracting
Services, Inc.
BASE BID:76,405.00$ 242,608.00$ 450,936.00$
BID ALTERNATE:60,500.00$ 117,260.00$ 96,514.00$
TOTAL:136,905.00$ 359,868.00$ 547,450.00$
Page 183 of 353
Item 9.g.
City Council
Reject Bids for Roof Repairs on City Structures, PW 2025-08
October 14, 2025
Page 3
ADVANTAGES:
Fiscal guardianship of public funds suggests that the City reject all bids because the bids
received were 300% more than the Engineer’s Estimate, and far exceeded typical prices
expected for the roofing scope of work. By rebidding the project in Spring 2026 with only
the facilities requiring full re-roofing, the City anticipates more participation from local
contractors and more competitive pricing.
DISADVANTAGES:
Rebidding the projects means the structures needing new roofs will not receive new roofs
until Spring 2026.
ENVIRONMENTAL REVIEW:
The proposed action to reject all bids, conduct emergency repairs through informal
solicitation, and rebid the reroof project in Spring 2026 is exempt from the California
Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines sections
15060(c)(2) and 15061(b)(3) because it will not result in a direct or reasonably
foreseeable physical change in the environment; and the activity is covered by the general
rule that CEQA applies only to projects which have the potential for causing a significant
effect on the environment. Any necessary emergency repairs will not result in reasonably
foreseeable physical changes to the environment, and such repairs are necessary to
maintain service essential to public health, safety or welfare. Alternatively, this action is
categorically exempt from CEQA under State CEQA Guidelines section 15301 (Class 1
– Existing Facilities), which exempts projects that involve the operation, repair, or
maintenance of existing public structures or facilities, involving negligible or no expansion
of use. The proposed roof work, which involves only replacement and repair, will be
negligible or no expansion of the existing or former use of the structures. Thus, it can be
seen with certainty that there is no possibility that this activity may have a significant effect
on the environment, the activity is not subject to CEQA. None of the exceptions to the
categorical exemptions set forth in State CEQA Guidelines section 15300.2 apply.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
ATTACHMENTS:
1. Resolution
2. Bid Summary
Page 184 of 353
ATTACHMENT 1
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE REJECTING ALL BIDS FOR ROOF
REPAIRS ON CITY STRUCTURES (PW 2025-08), DIRECTING
STAFF TO PURSUE URGENT REPAIRS THROUGH INFORMAL
SOLICITATION, AND RE-BID REROOFING IN SPRING 2026.
WHEREAS, Roofs on two city facilities leaked after last year’s rainy season.
Subsequently, roofs of seven city facilities were inspected: City Hall, Council
Chambers, 1467 Ash St Soto Restrooms, Fire Department Station #1, Police
Department and Women’s Club. Staff contracted with Wick’s Roofing to conduct an
assessment of the roofs at these seven locations; and
WHEREAS, the reports provided by Wick’s Roofing were used to develop a Bid Book
to competitively bid the repairs and/or replacement of roofs at the seven facilities ; and
WHEREAS, the Engineer’s Estimate for the project was $136,905 and $200,000 was
allocated in the FY 2025-26 budget; and
WHEREAS, two bids were received by the bid opening date of September 25, 2025,
at 2:00 pm, and the lowest bid was 163% over the Engineer’s Estimate; and
WHEREAS, the bid summary demonstrates wide variation between the line items of
the two bidders; and
WHEREAS, the lowest bidder indicated no interest in performing on the project if any
of the re-roof locations were removed from the scope to bring it under budget; and
WHEREAS, the urgent repairs needed can be accomplished through informal
solicitation; and
WHEREAS, the City anticipates more availability of local bidders by rebidding the
remaining roof replacements in Spring 2026 just following the rainy season .
WHEREAS, the City may reject any or all bids or proposals in response to a City
solicitation in its sole discretion pursuant to section 3.08.080 of the Arroyo Grande
Municipal Code; and
WHEREAS, all prerequisites to the adoption of this Resolution have occurred.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo
Grande, as follows:
Page 185 of 353
RESOLUTION NO.
PAGE 2
1. RECITALS. The foregoing recitals are true and correct and are incorporated
herein.
2. BID REJECTION. The City Council rejects all bids received for the Roof
Repairs on City Structures (PW 2025-08), directs staff to pursue urgent repairs
through informal solicitation, and directs staff to rebid the reroofing project in
Spring 2026. The City Council incorporates the analysis of the Staff Report
dated October 14, 2025, accompanying this item, as part of the passage of
this Resolution.
3. CEQA FINDINGS. The City Council finds that the proposed action to reject all
bids, conduct emergency repairs through informal solicitation, and rebid the
reroof project in Spring 2026 is exempt from the California Environmental
Quality Act (“CEQA”) pursuant to State CEQA Guidelines sections 15060(c)(2)
and 15061(b)(3) because it will not result in a direct or reasonably foreseeable
physical change in the environment; and the activity is covered by the general
rule that CEQA applies only to projects which have the potential for causing a
significant effect on the environment. Any necessary emergency repairs will
not result in reasonably foreseeable physical changes to the environment, and
such repairs are necessary to maintain service essential to the public health,
safety or welfare. Alternatively, this action is categorically exempt from CEQA
under State CEQA Guidelines section 15301 (Class 1 – Existing Facilities),
which exempts projects that involve the operation, repair, or maintenance of
existing public structures or facilities, involving negligible or no expansion of
use. The proposed roof work, which involves only replacement and repair, will
negligible or no expansion of the existing or former use of the structures. Thus,
it can be seen with certainty that there is no possibility that this activity may
have a significant effect on the environment, the activity is not subject to
CEQA. None of the exceptions to the categorical exemptions set forth in State
CEQA Guidelines section 15300.2 apply.
On motion of Council Member , seconded by Council Member ,
and on the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
The foregoing Resolution was passed and adopted this 14th day of October 2025.
Page 186 of 353
RESOLUTION NO.
PAGE 3
_________________________________________
CAREN RAY RUSSOM, MAYOR
ATTEST:
________________________________________
JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
________________________________________
MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:
________________________________________
ISAAC ROSEN, CITY ATTORNEY
Page 187 of 353
BID SUMMARY
Roof Repairs on City Structures - PW 2025-08
Bid Opening: September 25, 2025 at 2:00 pm
Engineer's Estimate Southland Roofing, Inc. Best Contracting Services, Inc.
2202 S. Figueroa St. #4672 19027 S. Hamilton Ave
Los Angeles, CA 90007 Gardena, CA 90248
License No.: 1042623 License No.: 456263
DIR #: 1000648643 DIR #: 1000000563
Item # Description Units Quantity Unit Price Total Price Unit Price Total Price Unit Price Total Price
1 City Hall - 300 E. Branch St. LS 1 1,850.00$ 1,850.00$ 10,000.00$ 10,000.00$ 167,257.00$ 167,257.00$
2 Council Chambers - 215 E. Branch St. LS 1 19,025.00$ 19,025.00$ 105,083.00$ 105,083.00$ 111,524.00$ 111,524.00$
3 Ash St. Restroom - 1467 Ash St. LS 1 21,680.00$ 21,680.00$ 70,300.00$ 70,300.00$ 72,367.00$ 72,367.00$
4 Fire Department at 140 Traffic Way LS 1 2,975.00$ 2,975.00$ 8,000.00$ 8,000.00$ 34,696.00$ 34,696.00$
5 Police Department at 200 N. Halcyon LS 1 30,000.00$ 30,000.00$ 40,000.00$ 40,000.00$ 50,642.00$ 50,642.00$
6 Women's Club at 211 Vernon St. LS 1 875.00$ 875.00$ 9,225.00$ 9,225.00$ 14,450.00$ 14,450.00$
76,405.00$ 242,608.00$ 450,936.00$
Item # Description Units Quantity Unit Price Total Price Unit Price Total Price Unit Price Total Price
7 Old City Hall at 214 E. Branch St. LS 1 60,500.00$ 60,500.00$ 117,260.00$ 117,260.00$ 96,514.00$ 96,514.00$
Best Contracting Services, Inc.
BASE BID:76,405.00$ 242,608.00$ 450,936.00$
BID ALTERNATE:60,500.00$ 117,260.00$ 96,514.00$
TOTAL: 136,905.00$ 359,868.00$ 547,450.00$
Engineer's Estimate Southland Roofing, Inc. Best Contracting Services, Inc.
BASE BID
BASE BID
Engineer's Estimate Southland Roofing, Inc.
BID ALTERNATE
ATTACHMENT 2
Page 188 of 353