All bids rejected for Newport Beach library lecture hall

The Newport Beach City Council Tuesday rejected unanimously all construction bids for the central library’s proposed lecture hall at city staff’s recommendation after the lowest bid exceeded the estimated $14-million cost of the project by more than $3 million.

The Witte Hall project went out to bid in February of this year and received five, the lowest coming from AMG & Associates, Inc. at $17.1 million.

The current design concept, which first carried a $13-million price tag, was approved in November 2021 with the expectation that the city would front half of the cost while the Newport Beach Public Library Foundation would raise the rest. More recent estimates pushed the cost of the project to $14 million.

The matter was included in the council meeting’s consent calendar but was pulled for discussion by Councilman Erik Weigand.

City staff met with contractors and design consultant to see what project costs could be reduced while maintaining consistency with the approved plans but were unable to find changes substantial enough to construct the lecture hall within budget or with the intent of the project seen through.

“Unfortunately, the bids came in much higher than projected. Current construction and labor costs are significantly greater than estimated,” Newport Beach Public Library Foundation chief executive officer Jerold Kappel said Wednesday.

“The Library Foundation anticipates that the city will rebid the project, and that it will become a reality. The delay in the Witte Hall groundbreaking is disappointing, but in the interim, the foundation will continue to advocate for, and seek additional support for, the hall,” Kappel said. “Witte Hall will be a landmark addition to our city that will benefit every one of our citizens.”

Weigand and Councilwoman Robyn Grant stressed that the decision to reject all bids should not be misconstrued as the council members turning their backs on the project. Instead, the intent is to request bids again for the work, possibly later this year.

With the rejection Tuesday night, the city will be redistributing about $5 million of the $6.5 million promised toward Witte Hall that came from American Rescue Plan Act funding, which has time requirements.

The ARPA dollars will now be put toward the city yard fueling system replacement project that is underway, and the $5 million is expected to be replaced by city Facilities Financial Plan funds.

“I love infrastructure projects. I think they add to the city, and I will actually quote one of the people that have spoken in favor of this in that ‘cities are forever,’ and building things — it’s a wonderful thing to do and it does give back to the community,” Mayor Noah Blom said. “I am generally in great support of a civic auditorium. I think it adds to the civic center complex. I was not necessarily in favor of the bids that came back. I think it’s tough when our appraisals are so much lower than a bid that comes back.”

Blom said in rejecting the bids and searching for new ones that it would provide the city and dais an opportunity to see if costs may only be high now or if “we missed the envelope and they’re going to go up more.

“It’s just due diligence on our part and this isn’t just the willy-nilly spending of $5 million. It is every member of this community’s money that we’re spending, and it’s important for us to be fiscally conservative when we look at how we appropriate those.”