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