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AGENDA ITEM REVIEW FORM |
- Meeting Date:
- 03/25/2026
- Department Head:
- Eulogio Vera
- Submitted By:
- Jorge Perez, Assistant Director of Public Works, Public Works Department
ITEM:
SUMMARY:
The Department of Public Works requests City Council approval to award a construction contract to Merrill Development, Inc., for the construction of a new approximately 2,000 square foot pre-engineered metal building (PEMB) in addition to the existing Water Department Operations Building at the Water Treatment Plant Site No. 7, including associated site improvements.
The project was publicly advertised and procured using the traditional design-bid-build delivery method utilizing the new procurement portal, OpenGov. Merrill Development, Inc., was determined to be the lowest responsive and responsible bidder, submitting a bid in the amount of $421,764.00.
Public Works staff, in coordination with the Water Department and the project architect, reviewed all bids received and recommends awarding the contract to Merrill Development, Inc. This purchase falls under the bidding provisions of our City of San Luis Procurement Code 3.05.030, 3.05.040, and 3.05.050.
RECOMMENDATION / SUGGESTED MOTION:
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- Yes
- CITY/STATE/FEDERAL FUNDS:
- City
- TOTAL:
- $421,764.00
- BUDGETED AMOUNT:
- $380,000.00
- AVAILABLE AMOUNT TO TRANSFER:
- See fiscal impact statement
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- See fiscal impact statement
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
Account No. 300-302-90015
Budgeted Amount: $380,000.00
Staff has used $75,165.00 for the purchase of the pre-engineered metal building and architectural services. Therefore, there is a shortfall of $116,929.00. The department will not be complete project #2026056, and is requesting approval of budget transfer from such project to project #2026052 in the amount of $120,000.00 to cover the shortfall.