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File Number: 16-196 <br />Bids were opened on April 21, 2016. Two (2) bids were received for $928,600.00 and <br />$1,285,102.00. The pre-bid engineer's estimate for construction was $835,000.00. Rosas <br />Brothers Construction was determined by staff to be the lowest responsible bidder. <br />None of the bidders have an office in San Leandro that would qualify them as a local business <br />per the Local Inclusion Policy Ordinance. The low bidder will exceed the Local Business <br />Participation Goal of 25% by subcontracting with San Leandro businesses for 36% of the <br />contract value. Staff recommends proceeding with awarding the contract to the lowest bidder. <br />Staff verified that the contractor has a valid license with the Contractor's State License Board <br />and is registered with the California Department of Industrial Relations. <br />Contract Change Orders <br />As is standard in the construction industry, staff balanced site investigation costs with the risk <br />of finding unforeseen conditions during construction as well as the design costs with the level <br />of detail on the plans. Despite this forward planning, unforeseen conditions may be <br />encountered during construction and plan details may need to be adjusted or clarified. In <br />order to minimize delay on the project and ensure that the scope of work is adjusted as <br />needed to provide the highest quality project for the City, staff requests that the City Council <br />authorize the City Manager or his designee to negotiate and approve individual change orders <br />up to 10% (or $92,860.00 each) of the original contract amount and cumulative change orders <br />up to 25% (or $232,150.00) of the original contract amount. This will ensure efficient <br />completion of the project on budget and on schedule. <br />Applicable General Plan Policies <br />This action is consistent with Streets and Highways Goal No. 16 of the General Plan and <br />Action Item 16.03: Regularly maintain City streets and traffic control devices to ensure that <br />streets operate safely and efficiently. <br />Environmental Review <br />This project is categorically exempt from California Environmental Quality Act (CEQA) per <br />Section 15301(c) of the CEQA guidelines. The Notice of Exemption was filed with the <br />Alameda County Recorder on March 25, 2016. <br />Permits and/or Variances Granted <br />A Caltrans Encroachment Permit will be procured for curb ramp improvements located within <br />State right of ways. <br />Summary of Public Outreach Efforts <br />• The Notice to Bidders was published in the Daily Review, the South County Post, and the <br />World Journal. <br />• Staff also notified twenty-one builders' exchanges and construction data firms as well as a <br />list of contractors that asked to be notified of bidding opportunities via email. <br />• The project is described on the Engineering and Transportation Department website. <br />City of San Leandro Page 2 Printed on 5110/2016 <br />