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DISCUSSION Construction Bid Sealed bids for the project were opened on August 2, 2018. One bid was received in the amount of $475,000 (See Attachment 1, Bid Summary). The Engineer's Estimate for this project was $260,000, including a $25,000 allowance to address unforeseen issues with the interior wall framing that may be encountered during construction. Some damage is anticipated because of the leaking, but until the parapet walls are opened exposing the underlying material it is difficult to estimate the amount and severity of any water damage. As the Council is aware, bids received on various City projects recently have been higher than estimated costs, particularly with building construction projects. This has been attributed to both a good economy and the resulting increase in work available for contractors. It has been surmised that the amount of building work available has increased because of fire rebuilding efforts. While this is likely the case on this project, staff also spoke with the bidder who indicated their cost was higher due to the fact the roof consists of several smaller areas with very limited access. These small sections require more detailed edge work and slow production. This was also brought up by contractors that attended the pre-bid walkthroughs, who indicated that the engineer's estimate was low. Their point was that although this is only an 8,000-square-foot building, the building has several design features that break the roof up into numerous small areas and production will be slow. The low bid of $475,000 was received from Eagle Solutions, Inc. of San Ramon, California. All bid documents were found to be in order. The past work performed by this contractor was verified to be satisfactory. Staff recommends award of the construction contract to the lowest responsible bidder, Eagle Solutions, Inc. in the amount of $475,000. Staff additionally recommends that the contingency amount for this project be set at approximately ten percent of the construction contract ($46,000) to cover potential issues that may become apparent during the construction. Professional Services JKA's design fee includes limited construction support services. JKA will provide periodic site visits and will review shop drawings and RFI submittals. They will also provide punch list items at the pre-final walk at the end of the project. Budget The budget for this project is shown in tabular form in Attachment 2. There is currently $250,000 budgeted in CIP No. 11429. The total anticipated project costs, including expenditures to date, encumbrances, the low bid amount of $475,000 (which includes a $25,000 allowance for interior wall repairs), an approximately ten percent project contingency of $46,000, and professional services needed to complete the project brings the total to $542,282. This creates a funding shortfall within the project of $292,282. Page 3 of 4