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under the same name and legal structure for a minimum of five years. All four projects <br />listed in Thompson Builders’ bid were West Bay Builders, Inc. projects, and do not <br />reflect projects performed by Thompson Builders “under the same name and business <br />structure for at least the last five years.” <br /> <br />Staff initially notified Thompson Builders of their intent to recommend that the City <br />Council reject Thompson Builders’ bid as non-responsive and award the project to the <br />second lowest responsible and responsive bid by letter, dated November 20, 2015. <br />Thompson Builders’ counsel replied with a letter stating that the listing of West Bay <br />Builders, Inc. projects could and should be waived by the City as a minor irregularity. <br />Staff replied by letter dated December 9, 2015, informing Thompson Builders that they <br />had confirmed their initial decision to recommend rejection of Thompson Builders’ bid as <br />non-responsive and would not be electing to waive Thompson Builders’ failure to list its <br />own projects as a minor irregularity. Staff has not had any further communication from <br />Thompson Builders since that time. <br /> <br />The decision to reject Thompson Builders’ bid as non-responsive is permitted under <br />Section 0200 of the Project Manual “Instructions to Bidders,” Paragraph 1.14 “Bid <br />Evaluation” Part A, which provides in part: <br /> <br />“The City also reserves the rights, in its discretion, to reject any or all Bids; to re-bid the <br />Project; to reject any or all nonconforming, Non-Responsive, unbalanced or conditional <br />Bids; and to reject the Bid of any Bidder if it would not be in the best interest of City to <br />make an award to that Bidder, whether because the Bid is not responsive or the Bidder <br />is unqualified or of doubtful financial ability or fails to meet any other pertinent standard <br />or criteria established by City.” <br /> <br />Staff recommends awarding the contract to K.J. Woods Construction, Inc. for his <br />Second Responsive and Responsible Low Bid of $1,838,000.00. This bid is <br />approximately 22% higher than the engineer’s estimate which is in the range of <br />$1,450,000.00 to 1,550,000.00 for the cost of construction. The higher bid amount is <br />due to the fact that the engineer’s estimate is based on the average costs associated <br />with similar past projects, despite the fact that the current construction boom has <br />resulted in contractors being able to charge higher prices for their services. Additionally, <br />some unique characteristics of this project, including the fact that it is being built under a <br />highway and in a tunnel, led the Contractor to reach different time and labor cost <br />estimates than the engineer’s estimate anticipated. <br /> <br />ALTERNATIVES <br />Council may choose not to award the contract and direct staff to redesign and/or rebid <br />this project. <br /> <br />FISCAL IMPACT <br />Funds for the general work of this project have been approved and appropriated in the <br />Fiscal Year 2014/15 budget as Recycled Water System Development and Recycled <br />Water Main Extension – Kaiser Hospital Contribution. As of November 30, 2015, the <br />combined budget in both accounts is $1,867,762.00. <br /> <br />6.1.B. - Page 3