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#07 Reject bids for 189 South High Street NEIGHBORHOOD SERVICES MEMORANDUM May 1, 2009 TO: City Council FROM: Kelly Lee, Neighborhood Development Specialist SUBJECT: Bids for 189 S High Street-Buy, Rehab, Resell Contract 2009-A; Bid Schedule “D”-2009 Summary Bids for Neighborhood Services Bid Schedule ”D”-2009 contract 2009-A were th opened on Wednesday, April 29, 2009. The Neighborhood Services Department is recommending the Council reject all bids received for the rehabilitation of 189 S High Street because they exceed the project budget. Department Recommendation The Neighborhood Services Department recommends that the Council reject all bids received for contract 2009-A. City Manager Recommendation The City Manager concurs with Neighborhood Services Department’s recommendation. Suggested Motion I move to reject all bids for contact 2009-A. Background This project was to remodel 189 S High Street under the Buy, Rehab and Resell Program. Six contractors were qualified and four chose to submit bids. The total budget for this project included $150,000 in Community Development Block Grant funds for the property acquisition, rehabilitation and carrying costs. The cost of acquisition was $65,646.66, leaving $84,343.34 for rehabilitation and carrying costs. All four bids significantly exceeded the project budget. Bidder Bid Amount Drake Construction $175,359.00 EL&K Packaging & Developers, Inc $236,126.00 Gilbank Construction, Inc $297,000.00 Imperial Builders & Contractors, LLC $266,848.60 Staff proposes to revise the original scope of the project and act as general contractor in order to complete the project on budget. The original plan included the removal of exterior paint revealing the original brick surface. Although aesthetically desirable, this appears to be cost prohibitive. Additional project cost 1 savings would occur if the City of Janesville acted as the general contractor. One of itemized bids included $40,000 for general contractor fees. In addition, staff will consider Focus on Energy funding and will utilize lead hazard reduction grant money to reduce the cost of the project. cc: Eric Levitt, City Manager Jay Winzenz, Director of Administration Jennifer Petruzzello, Director of Neighborhood Services 2