At its August 29 Dos Palos City Council Meeting, the council members voted unanimously to award the contract for the construction of the Dos Palos water treatment plant to W.M. Lyles Co., in the amount of $35,444,090 and to authorize the city manager, or their designee to negotiate the contract on behalf of the city.
City Manager Dewayne Jones addressed the council and residents present, “We started this process in 2005 or so and finally we are here, we are all super excited. A lot of hard work has gone into this; thank you to everyone who helped make this happen.”
Now that the city has determined the lowest responsible bidder, city staff are working on adding a contingency clause regarding state funding of the project.
City Attorney Amanda Savage addressed the council “A contingency clause needs to specify that the awarding of the contract is contingent on receiving the necessary state funding and if there are any issues receiving funding, the city can walk away from the contract with no ties to owing W.M. Lyles Co. anything.”
W.M. Lyles Co. have accepted the contingency clause. Bidders also typically hold their bid pricing for 60 days, and for the city of Dos Palos, that deadline is rapidly approaching. The city is expecting a cost increase in parts and materials, but the parts and materials contingency included in the bid will cover that.
The labor rates are expected to increase next year so city staff are working diligently to get state funding in hand before then. If the funding is not received by the end of the year, the city would potentially have to go out to bid, again. W.M. Lyles Co. is willing to hold its bid and move the proceed date out if necessary. A proceed date is set when the contract is fully executed and stipulates when the contractor can start work – this is all determined by the state funding issuance.
The state is aware of the increase in labor costs on Jan 1, 2024, but they don’t foresee the funding issuance going that long. Labor rates can be locked in for this year, material costs cannot.
The city also received a bid from Clark Bro’s Inc. for $38,820,310. The city reviewed both bid packages for insurance, affidavits about certified payroll, and contractor licenses for both contractors. Both packets were complete and were sent to the state who were in agreement to award W.M. Lyles the lowest responsible bidder for the project.
W.M. Lyles Headquarters is based in Fresno, California and specializes in water treatment projects among other specialties. They have been constructing water treatment facilities for over 50 years and are a recognized industry leader in both the design/bid/build and design/build project delivery methods per their website.
The city staff will provide updates during its City Council Meetings and through the City Facebook page. The next regularly scheduled City Council Meeting is scheduled for Sept. 19, in the City Council Chambers (1546 Golden Gate Avenue, Dos Palos).
