File #: 24-441    Version: 1 Name: Reject all bids for Sanctity of Life Memorial
Type: Staff Report Status: Filed
In control: City Council
Meeting Date: 11/4/2024 Final action: 11/4/2024
Enactment date: Enactment #: Reso 2024-144
Title: Adopt a Resolution to Approve and Authorize the City Manager to Reject All Bids for the Steven Taylor Sanctity of Life Pavilion Project, Project No. 2022.0340
Sponsors: Sheila Marquises
Attachments: 1. A - Bid Summary, 2. B - Draft Reso Reject All Bids, 3. C - Presentation

Title

Adopt a Resolution to Approve and Authorize the City Manager to Reject All Bids for the Steven Taylor Sanctity of Life Pavilion Project, Project No. 2022.0340

 

Staffreport

COUNCIL PRIORITY

                     Infrastructure

                     Community Engagement and Outreach

                     Race and Equity Initiatives

 

SUMMARY

 

The lowest responsive and responsible bid received for the Steven Taylor Sanctity of Life Pavilion Project was $598,933, which exceeded the Engineers estimate and project budget.  Additional anticipated project expenditure would further raise the total project cost above the project’s funding appropriation. Based on the bids received, staff recommends rejecting all bids, reevaluating the park design, and rebidding the project to better align construction costs with the project budget.

 

RECOMMENDATIONS

 

Staff recommends the following to the City Council:

 

                     Reject all bids

                     Reevaluate park design

                     Re-bid the project

 

BACKGROUND

 

The City of San Leandro began the design of the pavilion with the assistance of a local design firm, RRM Design Group, and a community outreach consultant, Kearns & West. The project will create a public space carefully designed to bolster community understanding, reconciliation, and awareness of belonging, and to promote healing among the residents of San Leandro.

 

The City published a bid posting for construction services in June 2024 and opened bids on July 31, 2024.

 

ANALYSIS

 

Four (4) bids were received on July 31, 2024, ranging from $598,933.00 to $829,732.55. The Engineer’s Estimate was $407,539.85.

 

Post-bid analysis determined that the higher bid costs are attributable to the following factors:

                     High contractor insurance requirements

                     Local business inclusion requirements

                     Increase in labor and material costs

 

The lowest responsible bidder, Kerex Engineering, Inc. submitted a bid of $598,933. 

 

Staff recommend rejecting all bids and reevaluating the design to better align the project design with the available budget considering current construction costs. Staff anticipate that certain features and improvements from the original design may be modified, reduced, or delayed to a future phase of the project to meet the current budget. Staff will rebid the project once the redesigned project is completed.

 

 

COMMITTEE REVIEW AND ACTIONS

 

                     Staff presented at the Facilities and Transportation Committee on October 2, 2024 with a recommendation to reject bids. 

 

SUMMARY OF PUBLIC OUTREACH EFFORTS

 

                     Community Dialogues at the Main Library: July 8, 2024, July 11, 2024, August 9, 2024, and August 12, 2024

                     Presentations at the City of San Leandro Arts, Culture, and Library Commission - November 21, 2023, April 16, 2024

                     Tree planting at the project site on April 18, 2024

 

FINANCIAL IMPACTS

 

The cost and details on funding types, accounts, and authorizations of this project are detailed below.

 

Landscape Architect Design Consultant Contract                     $168,000

Community Outreach Consultant Contract                     $50,000

Art Component                     $100,000

Staff Costs (to date)                     $46,000

  Change Order to RRM Contract for Redesign                     $23,000

  Remaining Funds Available Construction Contract                     $238,000

Total                                                               $625,000

 

The project is funded as follows:

 

Account No.                     Reso. Appropriation Dates & Source                     Amount

210-62-141                     FY 2021-2022 Budget, General Fund                     $625,000

Total Current Appropriation                                          $625,000

 

 

ATTACHMENTS

 

                     A - Bid Summary

                     B - Resolution to Reject All Bids

                     C - Presentation

 

PREPARED BY:  Adrian Toscano, Assistant Engineer, Public Works Department