1998 AGN AUG 18 I11 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT For City Council Meeting of AUGUST 18, 1998 T0: HONORABLE MAYOR &CIN COUNCIL APPROVAL: HENRY GARCIA, CITY MANAGER��—�� FROM: JOHN C. HUTTON, PUBLIC WORKS DIRECTOR v SUBJECT: RECOMMENDATION FOR SELECTION OF COMPUTER SERVICE COMPANY, APPARENT LOW BIDDER OF THE STATE TRANSPORTATION FUNDED LA CADENA DRIVE SIGNAL INTERCONNECT PROJECT amount of 8434.506.10 DATE: AUGUST 10, 1998 BACKGROUND: The City of Colton North La Cadena Interconnect Project consists of the interconnection between and improvements to signalized intersections located between Valley Boulevard and Mt. Vernon Avenue in the City of Colton. The Bid Opening for the North La Cadena Drive Traffic Signal Interconnect Project was held on August 4, 1998. Five (5) Bidders submitted Bid Proposals: 1. Computer Service Company $434,506.10 2. TDS Engineering $468,259.00 3. Fischbach & Moore Traffic Systems Group $4881187.00 4. Paul Gardner Corporation $535,837.00 5. Highlight Electric $538,371.00 Computer Service Company was recommended as the Lowest Responsible Bidder with a Total Bid Amount of $434,506.10. DISCUSSION/ANALYSIS: All bids were well above the Engineer's Estimate of $306,000. Market conditions will change rapidly for signal equipment. There are two alternatives to solve this problem: 1. Rebid the project with a significantly reduced scope eliminating RIF (Radio Frequency) interconnect and improvements north of "C" Street. This would mean no improvements at Olive, Bordwell and Mt. Vernon. RIF technology is $170,000 of the overall project bid. RIF was intended to be less expensive than interconnect cable. The bid results indicate costs are higher for RIF than hard wired interconnect cable. Our experience with projects that are rebid indicate we would receive bids with significantly higher unit prices than the original bid. Therefore reduction of the project scope must be greater than that indicated in the original bids to meet the budget. 2. Accept the lowest qualified bid with a 5% contingency and not the standard 10% contingency. FINANCIAL IMPACT: The entire project is reimbursed with State and Federal funds to a maximum of $396,000. The project costs include design at 52,000; Construction Engineering at $37,600; the remaining $306,000 was to cover the construction contract and contingency. The lowest qualified bid is $434,506.10 plus a 5% contingency of $21,725.31 totals $456,234.41. $306,000 of Construction is covered by the State/Federal grant The remaining $150,231.41 would have to be covered by the City of Colton. Page 1 of 2