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File Number: 25-245 Curb ramp upgrades associated with micro surfacing and cape seal treated streets were completed as part of an earlier phase of the Project. ANALYSIS Bids for the Project were opened on May 7, 2025. Two (2) bids were received, ranging from $5,098,856.00 to $6,582,000.00. The lowest bid, submitted at $5,098,856, exceeded the pre-bid Engineer’s Estimate of $3,635,110.04 by approximately 40%. Post-bid analysis and communications with both bidders identified multiple factors that contributed to the higher-than-expected bid prices: ·Anticipated permitting requirements related to CalTrans and Union Pacific Railroad (UPRR) encroachment permits and crossings requirements ·Increased material costs, particularly for pavement striping and traffic control, possibly driven by expected tariffs and ongoing supply chain disruptions ·Costs associated with satisfying contractor safety requirements Staff estimate that an additional $1.8 million would be required to award the construction contract based on the lowest responsible bid received and project budget available. Staff therefore recommend rejecting all bids. Staff plan to combine the subject project with the Annual Street Sealing 2024 Project, currently in the design phase and scheduled for construction in the Summer of 2026. Staff plan to advertise the combined Project for bid as early as Fall of 2025 with anticipated contract award in the Spring of 2026 to attract a larger number of bidders and encourage more competitive bids. In addition, combining the two projects into one larger project could further encourage more competitive bid prices by generating economies of scale and creating redundancies in common bid items such as mobilization. Current Agency Policies ·Maintain and enhance the City’s infrastructure Previous Actions ·On June 5, 2023, by Resolution No. 2023-060, the City Council Approved a Construction Contract with Sposeto Engineering, Inc. in an amount of $893,000 for Curb Ramp Upgrades for the Annual Street Sealing 21-23, Project No. 2022.0070, and authorized the City Manager to Negotiate and Approve Individual Change Orders Up to 5% of the Original Contract Amount ($44,670) and Cumulative Change Orders up to 25% of the Original Contract Amount ($223,350) for the Project in Fiscal Year 2022-2023. Applicable General Plan Policies ·Policy T-2.1: Complete Streets Serving All Users and Modes. Create and maintain “complete” streets that provide safe, comfortable, and convenient travel through a comprehensive, integrated transportation network that serves all users ·Policy T-5.3 - Maintenance. Regularly maintain City streets and traffic control devices to ensure that streets operate safely and efficiently. The City will strive for an overall Pavement Page 2 City of San Leandro Printed on 9/4/2025