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6.1. D. - Page 2 <br /> Two (2) bids were received and are summarized in the table below. <br /> Bidder Bid Amount <br /> MR Meeks General Contractor, San Jose, CA $426,815.00 <br /> lonian Construction, Millbrae, CA $442,656.00 <br /> Engineer's Estimate $299,000.00 <br /> Recommended Bidder: MR Meeks General Contractor <br /> Substantiation: MR Meeks General Contractor is the lowest <br /> responsive and responsible bidder. <br /> The low base bid of $426,815 submitted by MR Meeks General Contractor is 42.5% <br /> higher than the engineer's estimate of $299,000. The engineer's estimate was <br /> inaccurate as it relied on information from the prior work on the building and <br /> consequently did not incorporate the labor cost increases associated with prevailing <br /> wage and Davis Bacon wage requirements, and updated material costs. The cost for <br /> this rehabilitation work is approximately $62.46 per unit, which staff still considers <br /> reasonable. Consequently, staff recommends awarding the contract to MR Meeks <br /> General Contractor. <br /> Construction is expected to begin the first week of July and conclude in September <br /> 2012. <br /> ALTERNATIVES <br /> Council may choose not to award the proposed contract and direct staff to reject all <br /> bids; redesign the project; and/or offer this project again for public bid. <br /> FISCAL IMPACT <br /> Funding is available in the City's Community Development Block Grant Fund (258) and <br /> Rental Income Fund (257). <br /> ENVIRONMENTAL REVIEW <br /> The proposed project is considered categorically exempt from the requirements of the <br /> California Environmental Quality Act Guidelines pursuant to Section 15301, Class 1(a) <br /> because it involves interior alterations such as interior partitions, plumbing and electrical <br /> conveyances. <br />