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Anvil Builders, Inc.- San Francisco $8,926,212.50 <br />ENGINEER’S ESTIMATE <br />(Prepared By Wood Rodgers) <br /> <br />$1,900,000.00 <br />(APPROXIMATELY) <br /> <br /> <br />Staff has evaluated the bids and has determined that the low bid submitted by Proven <br />Management, Inc. ($7,320,158) is 284.75% higher than the engineer’s probable cost <br />estimate ($1,900,000) for the cost of construction. <br /> <br />The engineer’s estimate was prepared and completed by Wood Rodgers. According to <br />Wood Rodgers, they developed unit costs based on documented values from various <br />sources, including R.S. Means, Caltrans, and local bids on their previous projects in <br />Alameda County. <br /> <br />Staff believes the low number of bids and high bid amounts are most likely attributed to the <br />nature of this specialty project, a very competitive construction market, permit <br />requirements that limit capable contractors and the perception of risk regarding working in <br />areas adjacent to multiple private properties. <br /> <br />Recommendation and Next Steps <br />Staff recommends a rejection of all bids and rebid a more focused project that can be <br />constructed within budgeted funds. The revised project would focus on the highly critical <br />channel sections. The drawings and the specifications and the cost estimates will be <br />revised with the assistance of the City consultant. With the reduction of the scope of work, <br />staff believes additional contractors may be able to bid this project. <br /> <br />ALTERNATIVES <br />Council may choose to award this project to the lowest bidder, Proven Management Inc. <br />and execute the base bid only which is the Jefferson Branch amounting to $3,891,424.00. <br />Additional funding up to the contract amount including 10% contingencies would be <br />needed in order to execute the work if this alternative is chosen. The total budget amount <br />needed to perform work associated only with the Jefferson Branch will be $4,280,566.40 <br />(includes 10% contingencies). If this alternative is chosen, an additional funding of <br />approximately $2,746,739.57 would need to be borrowed from another CIP project. <br /> <br />FISCAL IMPACT <br />Funds for the 2017-2018 Redwood Creek Replacement Project were previously <br />approved and appropriated in Fiscal Year 2017-18 budget as Capital Outlay <br />Projects – Strom Drain Collection System Construction with an available balance of <br />$1,533,826.83 as of January 17, 2018. <br /> <br /> <br /> <br />ENVIRONMENTAL REVIEW <br />6.1.B. - Page 3