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CITY OF AT YOUR SERVICE COMMUNITY DEVELOPMENT DEPARTMENT 555 Liberty St. SE / Room 305 • Salem, OR 97301-3503 •(503) 588-6173 •(503) TTY 588-6353 •(503) Fax 588-6005 June 21, 1999 TO: Mayor and City Council FROM: William Healy, Community Development Director 1• ~~ THROUGH: Larry Wacker, City Manager ~l~~i~~ COURTHOUSE SQUARE - LINE ITEM BASE BID COMPARISONS Mayor and Councilors: At the June 8 City-County-Transit District meeting, I mentioned some of the major line item bid discrepancies between the Pence/Kelly bid and all other bids received. Following the meeting, Mayor Swaim requested a line item comparison for all work to be potentially funded by the Urban Renewal Agency. This information may be useful to the entire council, and is herein attached. The spreadsheet compares Pence Kelly line item bids to the other five bidders, to the median of all bidders, and to the 120% of inedian. 120% of inedian is the maximum amount we have authorized for payment under the inter-governmental agreement, which specifies that °in the event the Agency finds unit costs to be unreasonable, the Agency may designate an acceptable level of participation". Several Pence Kelly line items particularly stand out as exceeding all other bids. For instance: General Conditions - Line item #2, Traffic Control: the Pence Kelly bid this item was $144,785, where the next highest bid for the same item was $11,000. Pence Kelly was $136,576 over the bid median for this line item. Streetscape - Line item #17, 2 1/4" Brick Pavers: Pence Kelly bid the item for $283,961; the next highest bid was $150,000. Pence Kelly exceeded the bid median on this item by $166,481; the Pence Kelly amount over median for this item exceeds the full cost of the item tendered by the next highest bidder. EXHIBIT 3