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MINUTES Page 16 City of San Leandro City Council, San Leandro Redevelopment Agency, San Leandro Economic Development Agency, and San Leandro Hillside Geologic Hazard Abatement District Joint Meeting -July 19, 2004 8.M. Matter of Rejecting Bids and Authorizing the Call for Re-Bidding for the MacArthur Boulevard Streetscape Project, Project No. 03-964-82-058 (rejects all bids received on July 12, 2004 and provides authorization for are-bid). Vice Mayor Badger commented that while he understands the need to re-bid the project, the homeowners in the area have been expecting the work to get underway. He asked which items will be removed or changed from the existing plan in order to achieve the cost reductions. Engineering and Transportation Director Uche Udemezue outlined the reasons for the bids coming in much higher than the amount budgeted for the project. He indicated that only minor modifications will be made to the plan, SOlne items will be listed as alternates and some alternate itelns will be used. Mr. Udemezue acknowledged that the developer and neighboring hon1eowners are anxious to have the work proceed, and staff intends to go out to re-bid as soon as possible. Councilmember Nardine asked what will prevent the contractor from trying to make more than the contract amount through change orders. Mr. Udemezue indicated that the City typically has a low percentage of change orders because its plans are quite comprehensive. He noted that staff hopes to attract more competition by re-bidding the project. Vice Mayor Badger asked about the coordination between the work on this project and that of the housing developer. Mr. Udemezue noted that the drainage for the City's project will go through the developer's property and must be completed first. Mr. Uden1ezue also noted that it would be more desirable to con1plete the City's project first than to have the construction interfere with the marketing of the housing development. Vice Mayor Badger inquired about the timeline. Mr. Udemezue stated that, in order to run the drainage through the property, the developer must be in an advanced stage of construction for the site in1provements. Mr. Udemezue estimated that the developer will begin construction sometime this fall. Vice Mayor Badger commented that the Estudillo Hon1eowners Association is very interested in the projects and will be discussing this matter at their meeting this week. Mayor Young asked for an update on the developer. Mr. J ermanis stated that the developer is preparing to begin construction and will be coordinating with the City on the installation of the storm drain. . Resolution No. 2004-127, Resolution of the City Council of the City of San Leandro Rejecting Bids and Authorizing the Call for Re-Bidding for the MacArthur Boulevard Streetscape Project, Project No. 03-964-82-058. (3024) M/S/C Badger and Stephens. Ayes: 7; Noes: 0