Hollister engineering officials have recommended the city reject
all 10 bids received for a replacement of an airport building
destroyed by fire in 2002 because they expect a project shortfall
with the lowest estimate.
HOLLISTER
Hollister engineering officials have recommended the city reject all 10 bids received for a replacement of an airport building destroyed by fire in 2002 because they expect a project shortfall with the lowest estimate.
In early June, the city requested bids for a replacement to Building 25 at the Hollister Municipal Aiport in November 2002. On Monday, council members are set to consider a resolution to reject the 10 bids, which ranged from a low bid of $1.97 million from Valhalla Builders and Developers to a high bid of $2.19 million, according to a staff report.
The estimated engineer’s cost for the project came to $2 million, while Hollister received $2.3 million for the building in a lawsuit with an insurance company. Even though the bid came in under that amount, city engineering officials believe the legal costs – $180,000 – along with construction contingencies would leave a shortfall. If that occurred, the money would come from the general fund.
“Because of the current financial uncertainties of the current economic conditions with both the City’s budget and the State’s budget,” the staff report reads, “awarding this project would require excess funds be expended from the General Fund.”
The council is set to meet at 6:30 p.m. Monday at Hollister City Hall, 375 Fifth St.
