11 - Laserfiche WebLink

Kier + Wright Civil Engineers & Surveyors, Inc and Mark Thomas for the Johnson Drive Economic Development Zone traffic mitigation improvements. Construction Bidding and Final Cost Estimate The format of the advertised bid package for the improvement plans coordinates closely with JDEDZ Project CEQA documentation and the Agreement. While bid as one project, the advertised bid package divided the work into the five traffic mitigation measures identified in the JDEDZ Project CEQA documentation, with each of the five mitigation measures assigned to one of two projects as discussed in the Agreement: Stoneridge Drive and 1-680 Project: a. Measure 4.D -1d, Stoneridge Drive and 1-680 on-ramp widening — Caltrans ROW 2. JDEDZ Street Improvements: a. Measure 4.D -1a, Commerce Drive at Johnson Drive Signal b. Measure 4.D -lb, Johnson Drive at Owens Drive (North) Signal c. Measure 4.D-3, Johnson Drive Widening d. Measure 4.D -1c, Johnson Drive at Stoneridge Drive Intersection The bid package required each bidder to submit a price for each of the five traffic mitigation measures and defined the winning bid as the bid with the lowest total of the five prices submitted. Arranging the bid package in this way was consistent with how the Planning Level Estimate was prepared and is therefore also consistent with how the reimbursement provisions are written within the Agreement. Four bids were received on April 29, 2022, all from local contractors well known in the industry for performing the type of work required on this project. The difference between the lowest three bidders is relatively small. Due to the small differential between the three lowest bidders, City staff and Costco are confident the lowest bid represents a competitive and realistic cost to construct the JDEDZ traffic mitigation measures. The lowest bidder has been determined to be responsive to the requirements of the bid package, and capable by both experience and financial position to accomplish the work. Attachment 3 shows all four bids received. As stated previously, the low construction bid of $19,713,669.70 is only one component of the $32,488,077 Final Cost Estimate (Attachment 2). Since the Final Cost Estimate includes a contingency equal to 10 percent of the low construction bid, it should be considered a conservative cost estimate. It represents the expected upper limit of the total project cost. Barring something far beyond the ordinary for public works construction projects, the final Cost Certification (required by Section 3.10 of the Agreement at the completion of construction) should not exceed the Final Cost Estimate. Finally, Costco has hired Cumming Group to track all expenditures related to the project to comply with Section 3.10 of the Agreement. Cumming Group has provided City staff Page 5 of 11