Laserfiche WebLink
File Number: 18-110 <br />remaining deteriorated pavement surfaces. <br />This project will repair or replace approximately three acres of asphalt pavement and install about <br />1,300 linear feet of joint utility trench to provide compressed air and water to sixteen locations. <br />The project is intended to improve the pavement and drainage conditions at the facility. The <br />project will also improve efficiency at the facility by providing easier access to compressed air <br />and water used for maintaining and operating the onsite equipment. <br /> <br />This is the second bid for this project. The first bid for the project was on August 10, 2017, with <br />the low and only bid being $1.5 million above the engineer’s pre-bid estimate. The engineer’s <br />pre-bid estimate was $1,050,705, while the low bid was $2,559,000. Because there was only <br />one bidder, and the bid amount was $1.5 million above the engineer’s estimate, staff <br />recommended that the City Council reject all bids. To ensure that the City receives fair bids, staff <br />made some changes to the construction documents and rebid the project. The changes included <br />an expansion to the scope of the project reflecting additional analysis from WPCP staff. <br />Analysis <br />Bids were opened on February 15th, 2018 with two contractors submitting bids, which ranged <br />between $1,605,700 and $2,583,825. McGuire and Hester submitted the lowest responsive bid <br />of $1,605,700. The pre-bid engineer’s estimate for construction is $1,630,612.50. Staff <br />determined that McGuire and Hester is the lowest responsible bidder. Staff verified that the <br />contractor has a valid license with the Contractor’s State License Board and is registered with the <br />California Department of Industrial Relations. <br />Neither bidder has an office in San Leandro that would qualify them as a local business per the <br />Local Inclusion Policy Ordinance, nor did they meet the Local Business Participation Goal of 25% <br />by subcontracting with San Leandro businesses for 25% of the contract value. However, both <br />bidders provided documentation that demonstrated completion of the required good faith efforts <br />to meet the local business participation goal. <br />This project is subject to the provisions of the Community Workforce Agreement (CWA) and both <br />bidders signed the Community Workforce Agreement commitment form. <br />As is standard in the construction industry, staff balanced site investigation costs with the risk of <br />finding unforeseen conditions during construction as well as the design costs with the level of <br />detail on the plans. As a result, unforeseen conditions may be encountered during construction <br />and plan details may need to be adjusted or clarified. In order to minimize delay to the project <br />and ensure that the scope of work is adjusted as needed to provide the highest quality project for <br />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 $80,285) of the original contract <br />amount, and change orders up to a cumulative value of 25% (or $401,425) of the original contract <br />amount. Due to known unstable subgrade conditions and shallow plant utilities within the work <br />area, a higher contingency of 25% is recommended for this project. <br />A supplementary allocation of $1,350,000 from the Water Pollution Control Plant Enterprise fund <br />is requested for this project because the project does not currently have sufficient funds in the <br />Page 2 City of San Leandro Printed on 3/13/2018 <br />440