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File Number: 17-174 <br />loop separation between City Hall and the Main Library. Utilizing the remaining grant balance <br />of $133,000, this project will add approximately 1.3 miles of additional conduit, along <br />Washington Avenue completing a network loop between the Public Works Service Center and <br />conduit in San Leandro Boulevard at Polar Way. The alignment also includes conduit to two <br />traffic signals for future signal interconnects and conduit to the San Leandro Hospital and the <br />Ghirardelli Chocolate properties. <br />The project included a base bid for the installation of a total of 7,000 feet of conduit. <br />Optionally, Deductive Alternate A reduces the total length to 6,500 feet and Deductive <br />Alternate B reduces the total length to 5,300 feet. Deductive alternate bids as opposed to <br />additive alternates are mandated by the grantor. <br />Analysis <br />Bids were opened on March 29, 2017. Two (2) bids were received ranging from $427,830.00 <br />to $871,905.00 (base bid); the pre-bid engineer’s estimate for construction was $461,465.00 <br />(base bid). Cal Electro, Inc. was determined by staff to be the lowest responsible bidder. <br />The EDA grant process prohibits additive alternate bidding processes. However, it allows for <br />deductive bidding processes. To ensure that the City maximizes the use of the grant funds, <br />the bid documents were developed to contain Bid Alternates “A” and “B” for a selection of <br />conduit alignments in the project scope. With this setup, there is a greater chance that either <br />the entire project is constructed, or part of it is constructed within the remaining EDA grant <br />funds. The amount of the actual base bid is within the engineer’s estimate; and thus, the <br />deductive alternates will not be used. <br />The San Leandro Local Inclusion Policy Ordinance did not apply to this project because of the <br />EDA grant requirements. Staff verified that the contractor has a valid license with the <br />Contractor’s State License Board and is registered with the California Department of Industrial <br />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. As a result, unforeseen conditions may be encountered during <br />construction and plan details may need to be adjusted or clarified. In order to minimize delays <br />to the project and ensure that the scope of work is adjusted as needed to provide the highest <br />quality project for the City, staff requests that the City Council authorize the City Manager or <br />his designee to negotiate and approve individual change orders up to 10% (or $42,783.00) of <br />the original contract amount, and cumulative change orders up to 25% (or $106,957.50) of the <br />original contract amount. This will ensure efficient completion of the project on budget and on <br />schedule. <br />Current Agency Policies <br />·Advance projects and programs promoting sustainable economic development, <br />including transforming San Leandro into a center for innovation <br />·Maintain and enhance San Leandro’s infrastructure <br />Page 2 City of San Leandro Printed on 4/24/2017 <br />136