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BACKGROUND <br /> Sealed bids for this project were opened on February 9, 2010. The City received sixteen <br /> (16) bids, which ranged from $708,371.50 to $888,880.50. The Engineer's estimate is <br /> $800,000 for the project (see attached bid summary). The low bid of $708,371.50 was <br /> received from Grade Tech, Inc., of Castro Valley. All bid documents were found to be in <br /> order and past work performed by this contractor was verified to be satisfactory. <br /> City staff received a letter dated February 12, 2010 from the second lowest responsive <br /> bidder (DeSilva Gates Construction) protesting the submitted bid documents by the <br /> lowest responsive bidder (Grade Tech, Inc.). DeSilva Gates' letter states that the low <br /> bidder documents were not physically bound at the bid opening and insurance <br /> requirements were not met, thereby giving Grade Tech, Inc. an unfair advantage over <br /> other bidders. The City Attorney's office determined that DeSilva Gates concern about <br /> the bid document being unbound is inconsequential, and did not provide any advantage <br /> over other bidders. With regard to the insurance requirements, the workers' <br /> compensation insurance provider that has been used by Grade Tech, Inc. in the past is <br /> the State Compensation Insurance Fund (State Fund). State Fund has been accepted <br /> as the insurance provider for many other City projects; so the City Attorney has similarly <br /> determined that the insurance issue raised by DeSilva Gates is inconsequential. In <br /> conclusion, City staff found the Grade Tech, Inc. bid to be a responsive bid. <br /> Considering the current demands of the street maintenance program, staff has <br /> determined it is prudent to delay the subject construction project for one to two years. In <br /> addition, deferring capital projects is part of an important short-term fiscal strategy for <br /> the City and spacing projects over the coming years allows the City to reduce <br /> expenditures in the short term. <br /> Submitted by: Fiscal Review: Appro ed by: <br /> Brian Dolan David P. Culver Nelson Fialho <br /> Director of Finance Director City Manager <br /> Community Development <br /> Attachments: <br /> 1. Vicinity Map <br /> 2. Bid Summary <br /> Page 2 of 2 <br />