Folsom council rejects bids, some almost $150,000 over budget, for permit center upgrades

The Folsom City Council rejected all bids for a permit center building at its meeting Tuesday night.

In an effort to modernize the existing permit center, which the city said has not been updated in 25 years, the Community Development Department applied for and received a grant of $310,000 in 2019, according to a city resolution. Now, the budget for the project is capped at $300,000, but the bids from three separate construction companies ranged from $376,000 to $448,000.

The city provided an engineer’s estimate at $225,000. Charlie Allen, owner and vice president of S W Allen Construction, one of the companies that submitted a bid, said the “engineer’s estimate” has nothing to do with how the bids work.

“Those estimates are someone’s idea of what work may cost but what we need are companies to give us exact quotes that they will honor both in the time allowed for construction,” Allen said via email.

Allen said, as a general contractor, he strives to get at least three subcontractors to give a quote for every subcontracted category on a project. The permit center project involved nine categories: demolition, cabinets, doors and hardware, drywall and metal studs, acoustical ceilings, flooring, painting, fire sprinklers and electrical.

If the company is successful in its outreach, then it has three different companies bidding on the work in each category, resulting in 27 subcontractor bids, he said.

S W Allen Construction quoted the project at $431,980. J Vila Builders, the lowest bidder, said the project would cost $376,361. Swierstock Enterprise Inc. bid the most expensive price.

“We’re working on modifications to the project scope to reduce costs before we put the project back out to bid,” said Pam Johns, the Folsom community development director, via email.

According to the city resolution, staff expects to rebid the project soon, award and execute a contract and complete construction in 2023.

This story was originally published February 16, 2023 at 8:33 AM.