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File Number: 17-221 <br />This project is part of a larger project, the Annual Street Sealing 2016-17, which is scheduled <br />for construction in late summer 2017. To ensure that the Annual Street Sealing 2016-17 <br />project is delivered on time and successfully, the Curb Ramp Upgrade 2016-17 project was <br />scheduled as Phase 1 of the larger project as our past experience indicates that typical street <br />sealing contractors are not equipped to efficiently manage the subcontractors who perform <br />concrete work. <br />Analysis <br />Bids were opened on April 18, 2017. Three (3) bids were received ranging between <br />$407,570.00 and $555,100.00. The pre-bid engineer’s estimate for construction was <br />$354,460.00. <br />One of the three bidders is Silman Construction, a San Leandro business that meets the <br />requirements of Section 1-6-225 COMPARISON OF BIDS of the San Leandro Municipal <br />Code’s Local Business Preference (LBP) provisions. Silman Construction submitted a bid of <br />$433,517.88 that by the LBP code for contractors whose principal place of business is located <br />within the City of San Leandro was reduced by 10% or $43,351.79, to $390,166.09 for bid <br />comparison purpose. After applying the Local Business Preference deduction, Silman <br />Construction was determined by staff to be the lowest responsive bidder. Silman <br />Construction’s bid is $25,947.88 higher than the bid submitted by a contractor whose <br />business is located outside San Leandro. <br />Staff verified that the Silman Construction has a valid license with the Contractor’s State <br />License Board 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. Unforeseen conditions may be encountered during construction and <br />plan details may need to be adjusted or clarified. In order to minimize delay on the project <br />and ensure that the scope of work is adjusted as needed to provide the highest quality project <br />for the City, staff requests that the City Council authorize the City Manager or his designee to <br />negotiate and approve individual change orders up to 5% (or $21,675.89 each) of the original <br />contract amount and cumulative change orders up to 15% (or $65,027.68) of the original <br />contract amount. This will ensure efficient completion of the project on budget and on <br />schedule. <br />Current Agency Policies <br />·Maintain and enhance San Leandro’s infrastructure <br />Applicable General Plan Policies <br />Transportation Goal T-2 Design and operate streets to be safe, attractive, and accessible for <br />all transportation users whether they are pedestrians, bicyclist, transit riders or motorists, <br />regardless of age or ability. <br />Page 2 City of San Leandro Printed on 5/30/2017 <br />91