The City of Folsom has decided to cancel its bids for its Pavement Repair and Resurfacing Project for the fiscal year 2024-2025 after all submitted bids significantly exceeded the available budget, according to a staff report from the Public Works Department. The decision came during Tuesday night’s regular city council meeting and came after the bids came in exceeding the previous allotted budget amounts due to rising costs. 

The project, initially set with a $2 million budget as part of the city’s Capital Improvement Plan, received bids from eight contractors in July 2024. However, the lowest bid came in at over $2.27 million—approximately 39% higher than the city engineer’s estimate of $1.64 million.

Mark Rackovan, Director of Public Works, cited rapid inflation, fluctuating construction costs, and poorly defined project scope as the primary factors contributing to the unexpectedly high bids. As a result, the city council unanimously approved Resolution No. 11248 during the August 27 meeting, formally rejecting all bids for the project.

The project was to be funded through Measure A and SB-1 Road Maintenance and Rehabilitation funds. However, the disparity between the budget and the bid amounts forced city officials to reconsider the project’s scope. The Public Works Department plans to revise the project’s specifications and put it out for rebid during the winter of FY 2024-2025, with construction anticipated to begin in the spring of 2025.

The cancellation of this project highlights the challenges many municipalities face in maintaining infrastructure amid rising costs and economic uncertainty.

The project aimed to repair and resurface various roadways throughout the city, maintaining the safety and usability of Folsom’s roads. However, with the current budget constraints, the scope of the work will need to be adjusted to fit within the available funding.

Projects that were slated that are now cancelled included: Pavement repair and resurfacing on Oak Avenue Parkway; Asphalt rehabilitation on Natoma Street; Resurfacing work on Folsom Boulevard; Repairs on East Bidwell Street;General maintenance on various residential streets.