AgdaPkt 2017-10-02 Joint SA PFA - Laserfiche WebLink

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6.1.D. - Page 2 The two bids received at the bid opening on July 15, 2015 are summarized below. Bidder Bid Amount Carzadoro Construction Inc. — San Francisco $821,900.00 Sposeto Engineering Inc. — Livermore $866,980.50 Engineer's Estimate $390,000.00 Recommendation: Reject all Bids Substantiation: Bids are significantly more than the engineer's estimate, and additional funding opportunities are not available at this time. Staff has evaluated all line items in the bids in order to understand why the bids were significantly higher than the engineer's estimate. Many of the bid line items were higher than what would be expected for similar work, with costs of 2-3 times more for specialty work like the signal and storm improvements. Staff contacted over 50 contractors from our previous bidders lists, and only received two bids for the project. Staff has concluded that the current market has too much demand for contractors doing this type of work, so putting the project on hold would likely get more interest. There are no immediate time constraints for using the development contributions, and the current condition of the project does not pose any safety concerns, therefore a re -bid strategy is expected to yield better results with little downside. City staff anticipates that the bid will be issued in 2018. ALTERNATIVES Council may choose to direct staff to develop a funding plan that would allow for increased appropriations in order to award the contract to the apparent low bidder, Carzadoro Construction Inc. FISCAL IMPACT Currently, $400,000 is designated in the 2017-2018 Capital Improvement Project budget for this project. Should the City Council desire to award the contract to the apparent low bidder, an additional appropriation of $504,090 would be needed to cover the contract award plus 10% contingency. Staff have not developed a funding plan to support this additional appropriation, and would need to return with a recommendation if this approach were desired by the City Council. ENVIRONMENTAL REVIEW Rejecting all bids is not a project under CEQA Guidelines Section 15378. Nevertheless, as the lead agency, City of Redwood City has determined that the Marshall Street Intersection Improvements at Jefferson Avenue and Middlefield Road Project meets the California Environmental Quality Act (CEQA) exemption criteria as set forth in Section 15301, "Existing Facilities," because the project would be a minor alteration of the existing use of the public right-of-way. Furthermore, this project is designed to be compliant with the City's Engineering Standards and currently accepted practices.