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File Number: 18-474 <br />tenant improvements, which is almost the entirety of the building. The building construction cost is <br />roughly $414 per square foot, excluding contingencies, based on the proposal from the lowest <br />bidder. <br />Minor site work is also included in the project scope to address Americans with Disabilities Act <br />(ADA) deficiencies along the sidewalk on E. 14th Street and also at the Toler Avenue parking lot. <br />Analysis <br />A total of four bids were received at the bid opening on September 20, 2018. The bids were from <br />$6,268,000 to $7,028,000. The pre-bid engineer’s estimate was $6,218,084. The low bidder <br />was D.L. Falk Construction, Inc. of Hayward. Staff verified that the contractor has a valid license <br />with the Contractor’s State License Board and is registered with the California Department of <br />Industrial Relations. <br />At the mandatory pre-bid meetings, staff presented the requirements of the Local Inclusion Policy <br />Ordinance, responded to bidder questions, and provided contact information for free technical <br />assistance with compliance. Bidders were also provided with a list of San Leandro contractors <br />performing trades applicable to this project’s construction that currently hold business licenses <br />with the City of San Leandro. <br />None of the bidders have an office in San Leandro that would qualify them as a local business per <br />the Local Inclusion Policy Ordinance. Also, none of the bidders met the Local Business <br />Participation Goal by subcontracting with San Leandro businesses for 25% of the contract value. <br />The lowest responsive bidder has one local subcontractor, Western Roofing, whose subcontract <br />for approximately $70,000 represents 1% of the total contract value. Additionally, the lowest <br />responsive bidder provided documentation that demonstrated completion of the required good <br />faith efforts to meet the local business participation goal, pursuant to the Local Inclusion Policy. <br />This project is also subject to the provisions of the Community Workforce Agreement (CWA). <br />Each bidder was advised of the agreement in writing and verbally at the mandatory pre-bid <br />meetings. Each contractor was given contact information for the Bay Area Business Roundtable, <br />an organization hired by the City to provide free technical assistance to comply with the CWA. All <br />of the 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 and <br />ensure that the scope of work is adjusted as needed to provide the highest quality project for the <br />City, staff requests that the City Council authorize the City Manager or his designee to negotiate <br />and approve individual change orders up to 5% ($313,400) of the original contract amount and <br />cumulative change orders up to 15% ($940,200) of the original contract amount. This will ensure <br />efficient completion of the project on budget and on schedule. <br />Page 3 City of San Leandro Printed on 10/30/2018