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E3. Chip Seal Project for the Year Ending December 31 2025 Bid Rejection4t%40%kib 411111!111rk CITY OF KALISPELL MEMORANDUM To: Doug Russell, City Manager From: Patrick Jentz, PE, Engineer 3 Cc: Susie Turner, PE — Public Works Director Re: Chip Seal Project for the Year Ending December 31, 2025 Meeting Date: March 17, 2025 BACKGROUND: The Chip Seal Project for the Year Ending December 31, 2025, consists of furnishing materials, labor, and equipment required to chip seal City Streets. Chip Sealing is a cost effective approach to extend the useful service life of roads and reduce maintenance costs. BIDDING RESULTS: Bids were opened on March 6, 2025, at City Hall. Two responsive bids were received. Bid totals are summarized as follows: Contractor Bid Amount Bid Amounts with Projected Quantities Thompson Contracting Inc. $100,809.00 $429,633 Pavement Maintenance Solutions $191,945.25 $4,338,668,399 City Budget $207,670 The bids received were significantly higher than what the City had budgeted for this project, and there is an obvious misinterpretation of bidding amounts and quantities. RECOMMENDATION: Considering the higher -than -expected bids, the budgeted amount for the project, and the information received from the bidders, staff recommend rebidding the project and providing better instruction on project bid requirements. FISCAL EFFECTS: None at this time. ACTION REQUESTED: Motion to reject all bids for the Chip Seal Project for the Year Ending December 31, 2025. ALTERNATIVES: As suggested and approved by the City Council. 201 1" Avenue E I Phone (406)758-7720 PO BOX 1997 Public Works Department Fax (406)758-7831 Kalispell, NIT 59903 1 1 www.kalispell.com