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<br />assistance during the remaining design phase, bidding, and construction. Project plans and specifications
<br />were completed and the project was advertised in March 2020.
<br />ANALYSIS
<br />The project includes 45,000 s.f. of multipurpose rooms, a caterer's and demonstration kitchen, a
<br />welcoming lobby for social gatherings, a 299 -seat theater, an exhibit space honoring veterans and
<br />showcasing National Football League (NFL) alumni, a mini -gymnasium, wellness and adaptive physical
<br />education (PE) studios, and various conferencing and administrative space for Redwood City and a host
<br />of non-profit organizations who partner with the City to provide numerous community services.
<br />The four bids received at the bid opening on April 8, 2020 are summarized in the table below:
<br />The low bid of $52,670,607.00, submitted by Alten Construction, Inc., is 1.7% higher than the Engineer's
<br />estimate of $51,800,000.00, without the standard 10% contingency. Staff would have recommended
<br />awarding the contract to Alten Construction, Inc. since they are the lowest responsive and responsible
<br />bidder.
<br />The funding of the project and the award of contract first requires the issuance of bonds. Debt service
<br />from those bonds would be repaid through the City's General Fund, which funds most City services except
<br />for utilities. The current bond market continues to remain unstable due to COVID-19 financial impacts,
<br />and because of that it is not clear if the City would receive a favorable bond rate. A higher than expected
<br />bond rate would put additional pressure on the General Fund, which is experiencing lower revenues.
<br />Additionally, construction impacts to the adjacent neighborhood could be especially noticeable at this
<br />time with many more residents working and attending school from home due to the COVID-19 pandemic.
<br />For both financial and community impact reasons, staff have determined the project should be delayed
<br />for 6-12 months. Staff will continue to evaluate market conditions and assess the opportunity to reissue
<br />bid documents to spring/summer 2021 when a more favorable bond market and construction bidding
<br />climate could exist.
<br />FISCAL IMPACT
<br />The City Council has appropriated funding to this Project over the past four fiscal years in the 357-83083
<br />Park Impact Fee Fund and the 358-83083 Park In -Lieu Fee Fund with a total beginning balance of $14
<br />million. The use of these funds have primarily been designated to the soft costs of the project, including
<br />design, project management, and project administration. Financing for the building project relies on bond
<br />Page 2 of 4
<br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcitV.org
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<br />Bidder
<br />Bid Amount
<br />1
<br />Alten Construction, Inc.
<br />$52,670,607.00
<br />2
<br />Thompson Builders Corporation
<br />$53,178,000.00
<br />3
<br />SJ Amoroso Constructio. Co., LLC
<br />$54,477,000.00
<br />4
<br />Sausal Corporation, Inc.
<br />$55,018,000.00
<br />5
<br />Rodan Builders, Inc.
<br />$55,480,000.00
<br />Engineer's Estimate
<br />$51,800,000.00 to $57,000,000.00
<br />The low bid of $52,670,607.00, submitted by Alten Construction, Inc., is 1.7% higher than the Engineer's
<br />estimate of $51,800,000.00, without the standard 10% contingency. Staff would have recommended
<br />awarding the contract to Alten Construction, Inc. since they are the lowest responsive and responsible
<br />bidder.
<br />The funding of the project and the award of contract first requires the issuance of bonds. Debt service
<br />from those bonds would be repaid through the City's General Fund, which funds most City services except
<br />for utilities. The current bond market continues to remain unstable due to COVID-19 financial impacts,
<br />and because of that it is not clear if the City would receive a favorable bond rate. A higher than expected
<br />bond rate would put additional pressure on the General Fund, which is experiencing lower revenues.
<br />Additionally, construction impacts to the adjacent neighborhood could be especially noticeable at this
<br />time with many more residents working and attending school from home due to the COVID-19 pandemic.
<br />For both financial and community impact reasons, staff have determined the project should be delayed
<br />for 6-12 months. Staff will continue to evaluate market conditions and assess the opportunity to reissue
<br />bid documents to spring/summer 2021 when a more favorable bond market and construction bidding
<br />climate could exist.
<br />FISCAL IMPACT
<br />The City Council has appropriated funding to this Project over the past four fiscal years in the 357-83083
<br />Park Impact Fee Fund and the 358-83083 Park In -Lieu Fee Fund with a total beginning balance of $14
<br />million. The use of these funds have primarily been designated to the soft costs of the project, including
<br />design, project management, and project administration. Financing for the building project relies on bond
<br />Page 2 of 4
<br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcitV.org
<br />92
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