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DISCUSSION Bids The engineer's estimate for this project was $1,000,000, inclusive of a ten percent (10%) contingency. Six contractors indicated their interest in the project by purchasing plans and specifications. Only one bid was received on March 24, 2015, and it was in the amount of $1,363,608. Staff contacted the other five plan holders and asked why they did not bid on the project. A couple of them indicated that several other larger projects had bids due at the same time so they did not have the capacity to compete for our project. Staff also reviewed recent bids for similar projects in neighboring municipalities and determined that construction costs for this type of work are increasing. In reviewing the bid that was received, in conjunction with research of other projects, staff believed the unit pricing to be valid. To construct the project within the available funding, staff reduced the scope of work (length of trail to be paved) and re-bid the project. Staff reduced the scope of the project by shortening the paving of the third segment to end at Guzman Parkway instead of east to the new Stoneridge Bridge. This is the longest of the three test segments, so with this reduction, the goal of comparing the different surface treatments will still be accomplished. With the proposed reduced scope and an update of the construction costs to the current bidding climate, the new engineer's estimate for the project was $875,000. Note that the trail continues to the east but will not be repaved at this time. Additional Measure B (Bicycle and Pedestrian) funds were identified to resolve the shortfall of the project funding. Sealed bids were opened on April 21, 2015. Five bids were received that ranged from $866,598 to $1,101,130 (see Attachment 1). The low bid was received from Suarez & Munoz Construction, Inc. of Hayward, California. All bid documents were found to be in order and past work performed by Suarez & Munoz Construction, Inc. was verified to be satisfactory. Staff recommends award of the construction contract to Suarez & Munoz Construction, Inc. Budget Staff recommends that the contingency amount for this project be set at $108,400, approximately 12.5% of the construction contract, for unforeseen conditions. A project funding and estimated expenditure summary is included as Attachment 2. Residents along Stoneridge Drive contacted the Parks Division and requested that an entrance to the trail be added at Guzman Parkway. The Parks Division has recommended the transfer of $17,500 from the General Trails Improvement project, CIP No. 017034, to cover the cost of this bid item. Engineering staff recommends the transfer of $38,579 from the Bicycle and Pedestrian Related Improvements project (CIP No. 145043) to fully fund this project. Depending on how much of the contingency is used during the project, staff will extend the paving as far east as possible through a change order, in keeping with the intent of the project. Page 3 of 4