SOUTH LAKE TAHOE, Calif. — The South Lake Tahoe City Council on Tuesday evening voted to reject all bids for construction on the recreation and aquatics center project. The city received bids from two contractors in the amount of $59.4 million and $69.9 million for the estimated $52 million project.

As a result of Tuesday’s vote, the project will go out to bid in 2023 for a construction start date of 2024.  

“The Recreation and Aquatics Center will be built,” City Manager Joe Irvin said. “Phase I construction of the site, including ground clearance and utility work, was completed in October 2022. It is only the vertical construction that is delayed at this time due to multiple variables. Inflationary pressures, including the rise of goods and services, supply chain issues, and labor demands have increased the bid costs.”

In addition, there is a lack of available firms to perform the work in 2023, resulting in the two aforementioned bids, despite 570 contractors being contacted.

“Based on numerous sources, these variables are likely to improve over the next year,” Irvin said.

The city will also continue to accumulate Measure P funds of approximately $3 million per year.

The city, parks and recreation department and the Measure P Committee in a news release said they are committed to the full execution of this critical infrastructure project as voted on by the community and are further committed to being responsible stewards of Measure P and other taxpayer dollars.