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CITY COUNCIL AGENDA ITEM NO. 9

Meeting Date: December 12, 2000

Subject/Title: Reject all bids for construction of the Brentwood Education and Technology Center

Submitted by: Howard Sword, Economic Development Manager

Approved by: Jon Elam, City Manager


RECOMMENDATION

Reject all bids for construction of the Brentwood Education and Technology Center submitted on December 5, 2000.

PREVIOUS ACTION

Los Medanos College Lease; June 27, 2000. Kares Construction Management Contract; November 3, 1999. 

BACKGROUND:

 A construction budget of $1,500,000 was developed in the autumn of 1999 with the assistance of Kares Construction, a tenant improvement contractor with extensive experience in the Tri-Valley. This represented a $43.50 per square foot budget that appeared to be adequate. The anticipated strategy at that time was to use a construction management approach to build the project. This strategy did not materialize due to legal counsel’s interpretation of public bidding constraints.

LMC’s space plan and program were finally determined in August 2000 and contact documents were prepared and put out to bid November 8, 2000. The bids were opened on December 5, 2000 with the following results:

American Construction: Invalid Bid

McFadden Construction: $2,894,498.00

Diede Construction: $3,024,000.00

These bids represent of cost of approximately $84.00 per square foot. Staff finds this price to be inconceivable considering that we are starting with a sound building that includes adequate electrical switchgear, fire sprinkler array and very limited site work.

Staff proposes to analyze the bids and interview the contractors to find any items that are unnecessarily inflating the construction costs. Staff will also further investigate a construction management approach to the project. We will then either re-bid the project or retain the services of a construction manager.

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