8E Consent Calendar 2018 0716 - Laserfiche WebLink

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File Number: 18-330 The apparent second low bid, in the amount of $1,754,160, from Granite Construction Company was determined by staff to be the lowest responsive bid. None of the bidders have an office in San Leandro that would qualify them as a local business per the Local Inclusion Policy Ordinance. Also, none of the bidders met the Local Business Participation Goal by subcontracting with San Leandro businesses for 25% of the contract value. Each bidder had one local subcontractor, Columbia Electric, whose subcontract for approximately $60,000 represents 3% of the total contract value. Additionally, the lowest responsive bidder provided documentation that demonstrated completion of the required good faith efforts to meet the local business participation goal. Staff verified that the contractor has a valid license with the Contractor’s State License Board and is registered with the California Department of Industrial Relations. At the mandatory pre-bid meetings, staff presented the requirements of the Local Inclusion Policy Ordinance, responded to bidder questions, and provided contact information for free technical assistance if needed. Bidders were also provided with a list of San Leandro contractors performing trades applicable to this project’s construction that currently hold business licenses with the City of San Leandro. This project is subject to the provisions of the Community Workforce Agreement (CWA). Each bidder was advised of the agreement in writing and verbally at the mandatory pre- bid meetings. Each contractor was given contact information for the Bay Area Business Roundtable, an organization hired by the City to provide free technical assistance to comply with the CWA. All of the bidders signed the Community Workforce Agreement commitment form. As is standard in the construction industry, staff balanced site investigation costs with the risk of finding unforeseen conditions during construction as well as the design costs with the level of detail on the plans. As a result, unforeseen conditions may be encountered during construction and plan details may need to be adjusted or clarified. In order to minimize delay to the project and ensure that the scope of work is adjusted as needed to provide the highest quality project for the City, staff requests that the City Council authorize the City Manager or his designee to negotiate and approve individual change orders up to 5% ($87,700) of the original contract amount and cumulative change orders up to 15% ($263,100) of the original contract amount. This will ensure efficient completion of the project on budget and on schedule. Inclusion of the design work for the following year’s paving project as well as construction costs that have increased faster than inflation have resulted in a project cost that is greater than the budget. Additional funding is required to construct the project as envisioned. An additional Measure B Local Streets and Roads funds appropriation of $900,000 is requested as the City Council originally approved $6,065,000 for this project and the updated project estimate is now $6,965,000. In order to meet the Alameda County Transportation Commission timely use of funds policy for Measure B funds, the City must allocate this money to projects before it is collected, which will result in a temporary negative fund balance. The City receives approximately $1,400,000 in Measure B Local Streets and Roads money annually and will also receive $7,000,000 in Measure BB Grant Funds in Fiscal Year 18-19 for street maintenance and rehabilitation purposes. Page 3 City of San Leandro Printed on 7/10/2018