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<br /> <br /> Staff Report <br /> <br /> <br />To: Mayor Fischer and Members of the City Council <br /> <br />From: Eric Seaburg, City Engineer <br /> <br />Date: June 10, 2026 <br /> <br />Re: Rice Street Sidewalk Improvement Project – Rescind and Re-Award <br />Contract <br /> <br />Action To Be Considered: <br />Motion to approve, table, or deny the following: <br />• Rescind the contract award to Clark Companies. <br />• Award the contract to Thomas and Sons Construction. <br />• Approve the revised project cost estimate. <br /> <br />Background: <br />On Tuesday, May 19, 2026, bids were received for the Rice Street Sidewalk Improvement <br />Project. Six bids were received and are tabulated below: <br /> <br />Bidder Bid Amount <br />Clark Companies $549,927.00 <br />Thomas and Sons Construction $599,484.20 <br />JL Theis, Inc. $648,402.65 <br />New Look Contracting $664,834.10 <br />Urban Companies $692,173.07 <br />Pember Companies $761,519.80 <br /> <br />At the May 27, 2026, City Council meeting, a contract was awarded to Clark Companies. <br />Since the award, Clark Companies notified City staff that it no longer has sufficient staffing <br />capacity to complete the project and requested that the City proceed with another contractor. <br />The City then contacted Thomas and Sons Construction, which confirmed it is willing to <br />complete the project at its bid price from the May 19, 2026, bid opening. <br /> <br />Because the City must now contract with Thomas and Sons Construction, the estimated total <br />project cost has increased to $749,500, including a 25% allowance for contingency and <br />indirect costs. It is unusual for a city to award a contract and then be asked to withdraw that <br />award. In this scenario, the City has the ability to submit a claim against the Bid Bond <br />submitted by Clark Companies. Staff will evaluate whether to submit a claim against the Bid <br />Bond. The maximum claim is capped at 5% of the bid amount, or approximately $27,500. <br />