The FY19 Capital Improvement Program includes two projects, DR1801 and ST1804, for the Covington Woods Drainage Improvements at Sugar Mill Relief Line, and the 7th Street Reconstruction. The City combined these two CIP projects and bid them under ITB 2019-010 on March 28, 2019. Four contractors submitted bids and all the bids were above available budget.

The four bids ranged from $3,788,426 to $4,396,514. The available budget is $2,629,435. In order to maximize available funds to the best interest of the City, staff recommends to reject the bids to avoid unnecessary delays and to provide cost effective improvements in the area. This project scope will be redefined and rebid to fit within the available CIP budget and to complete the original intent/scope of the project. Some scope of work items will be reevaluated and considered as alternates to allow selection of project elements to fit within available budgeted funds. The revised schedule is to advertise and bid this project for summer 2019 construction. If the bids received are higher than available funds, the project will be delayed and reevaluated.

Texas Local Government Code 252.043 (f) authorizes the governing body to reject bids. Section X, Instruction to Bidders, of bid ITB 2019-010, states that "The City may reject any or all Bids as provided by law."

The Engineering and Public Works Department's recommend the City Council authorize the rejection of all bids received through the Invitation to Bid process for Covington Woods Drainage Improvements at Sugar Mill Relief Line and 7th Street Reconstruction, ITB 2019-010.