SR 05:314 - Laserfiche WebLink

Honorable Mayor and Members of the City Council: BACKGROUND The Iron Horse Trail Project from Busch Road northerly to Santa Rita Road consists of tW'o distinct phases. Ponderosa Homes' obligation, as part of its adjacent tract development, is to construct Phase I of the Iron Horse Trail from Busch Road to Mohr Avenue. The City, in partnership W'ith East Bay Regional Park District (E.B.R.P.D.), is obligated, as part of receiving Grant Funding from ACTIA, to build Phase II of the Iron Horse Trail from Mohr Avenue to Santa Rita Road. Initially, the City put out to public bid a combined project consisting of both Phases I and II of the Iron Horse Trail and received bids on September 28, 2005. At that time, Ponderosa Homes simultaneously advertised for bids for its portion of the W'ork privately, and received a construction quote from a local contractor in the amount of $537,059.02. The Ponderosa Homes bid W'as approximately $170,000 less for Phase I than the public bid received for Phase I on September 28, 2005. Consequently, if the City were to go forW'ard W'ith the public bids received on September 28, 2005, for the combined Phase I and Phase II project, Ponderosa' s obligation to reimburse the cost of its portion of the trail W'ould have been $170,000 short of the bid price and the City and East Bay Regional Park District W'ould have to make up the difference in costs for Ponderosa' s portion of work for Phase I. Therefore, it W'as decided that it W'as more cost effective for the City and E.B.R.P.D. to reject all bids for the combined project, re-bid Phase II of the project independently and let Ponderosa Homes go forW'ard W'ith its bid received for Phase I. The public bid documents W'ere not set up to aW'ard only Phase I or II of the project independently, and therefore required the project bid documents and plans to be revised and re-bid. On November 2, 2005, bids W'ere received for Phase II, W'ith the low bidder being McGuire and Hester, W'ith a submitted bid of $716,730. For the original combined project, Phase II was bid at $645,955, $71,275 10W'er than the re-bid single phase project. This W'as due to a loss of economies of scale since similar Phase I W'ork W'as not included in the repackaged project. However, this amount of $71,275 is significantly less than the $170,000 the City W'ould have had to contribute to the Ponderosa Phase I construction as described above. Attached is a summary of all bids received, along W'ith the engineer's estimate for the project. Previously, on March 16, 2004, the City Council authorized the City Manager to enter into an agreement W'ith Ponderosa Homes for the preparation of concept plans and preliminary construction drawings for the Iron Horse Trail. In January, 2005, a public meeting was held W'here the concept plans W'ere presented to the community in order to receive public input. SR:05:314 Page 2 of 4