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Packet 20230717
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Last modified
3/21/2024 5:53:56 PM
Creation date
7/18/2023 10:38:42 AM
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CM City Clerk-City Council
CM City Clerk-City Council - Document Type
Staff Report
Document Date (6)
7/17/2023
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PERM
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Agenda 20230717
(Reference)
Path:
\City Clerk\City Council\Agenda Packets\2023\Packet 20230717
Reso 23-099 Suarez and Munoz Const
(Reference)
Path:
\City Clerk\City Council\Resolutions\2023
Suarez & Munoz Construction Inc CSA 20230815
(Approved)
Path:
\City Clerk\City Council\Agreements\2023
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File Number: 23-226 <br />City received and accepted two grants in the amount of $2,750,000 in State Earmark grant funds <br />and $232,958 in State of California Department of Parks and Recreation Per Capita Proposition <br />69 grant funds in December 2021 and March 2022, respectively. <br />Analysis <br />A total of 4 bids were received ranging from $4,217,305 to $4,551,000, the pre-bid engineer’s <br />estimate was $3,806,301. Staff recommends award to the apparent lowest responsible bidder, <br />Suarez & Munoz Construction, Inc. in the amount of $4,217,305. Staff verified that the contractor <br />has a valid Contractor’s State License Board license and is registered with the California <br />Department of Industrial Relations. <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. The third lowest bidder met the Local Business <br />Participation Goal by subcontracting with San Leandro businesses for 25% of the contract value; <br />however, the $50,000 preference allowed for meeting the goal did not make this bid the lowest. <br />Suarez & Munoz Construction, Inc. did provide documentation that demonstrated good faith <br />efforts to outreach and engage local business participation. <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. To minimize delays 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 authorization to negotiate and approve individual change orders up to 5% <br />($210,866) of the original contract amount and cumulative change orders up to 15% (or <br />$632,596) of the original contract amount. This will help to ensure efficient completion of the <br />project on budget and on schedule. <br />The lowest bid is $411,004 above the engineer’s estimate and additional funds are required to <br />construct the project. Including a 15% contingency results in a shortfall of $472,654. Staff <br />requests an additional appropriation in the amount of $470,000 to this project to ensure <br />successful completion. <br />Current Agency Policies <br />·Maintain and enhance San Leandro’s infrastructure <br />Previous Actions <br />·On December 6, 2021, by Resolution No. 2021-173, the City Council accepted grant funds <br />for this project <br />·On June 21, 2022, by Resolution No. 2022-093, the City Council approved a Consulting <br />Services Agreement with RRM Design Group for Design of Memorial Park Improvements <br />·On December 19, 2022, by Resolution No. 2022-229, the City Council reappropriated <br />Page 2 City of San Leandro Printed on 7/12/2023
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