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Each construction item shall be listed as a separate line item in the bid <br />documents with at least as much detail as contained in the request for <br />funding cost estimate. <br />Approval of the Agency will be obtained by Marion County/Salem Area Transit <br />prior to award of a construction contract for the items to be funded by the <br />Agency. <br />The agreement was prepared pursuant Council direction and contained the following <br />language relating to review of the bids and acceptance of the amount of <br />participation: <br />Prior to construction contract bid award for the items of Agency <br />participation, the low bid recommended for award by the County and <br />Transit District shall be submitted to the Agency. The Agency will <br />designate in writing within five (5) days of submission, acceptance, <br />rejection, or designation of bid alternate for which the Agency will <br />provide participation. Agency approval for participation will not be <br />unreasonably withheld, however, reasons for withholding of such <br />approval shall include but not be limited to bid irregularity or <br />unreasonable unit cost. Agency acknowledges that the low bidder for <br />the entire Project construction may not necessarily represent the <br />lowest bid tendered for each of the specific areas of Agency <br />participation designated in Section 1, however, in the event the Agency <br />finds unit cost to be unreasonable, Agency may designate an <br />acceptable level of participation for the respective item. <br />On February 3, 1999, prior to the bid opening, City staff inet with County and <br />Transit District stafF specifically to define what would constitute an "unreasonable" <br />line item bid under the agreement. City staff were concerned that an imbalanced <br />bid could be submitted increasing the Agency funded bid items, proportionately <br />lowering the County/Transit District bid items. Such a bid structure would increase <br />the likelihood of awarding bid alternate (non-Agency) items, but at the expense of <br />the Agency. To prevent this potential shift of project costs to the Agency, it was <br />agreed that an acceptable level of Agency participation would be to compare the bid <br />for Agency line items to all other bids received, and to cap Agency participation to <br />120% of the median (middle) price of all bids received. <br />On February 4, 1999, bids were opened, and on February 5, bid tabulation sheets <br />were furnished to the Agency and analyzed. The apparent low bidder for the <br />project, Pence/Kelly Construction, also submitted the highest bid for elements of <br />Agency participation. The cost bid for general conditions and streetscape <br />improvement was 504% and 149% respectively of the median bid of all bidders. <br />