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Meeting Date:
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4/17/2025 - 7:00 PM
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Category:
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Information and Study Items
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Type:
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Action
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Subject:
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Facilitates: Award Contract for Additional Classrooms at Steindorf Update
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District Priorities:
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Enclosure
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File Attachment:
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Summary:
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On April 20, 2023, the Governing Board approved the addition of two modular classrooms at Steindorf to accommodate the current and projected growth. In April 2023, the estimated cost was $1,676,800 for the two classrooms and upon further project review in August 2023, the Board approved an increase estimated total amount to $2,287,00 to be funded from Fund 25 – Developer Fees.
The architectural plans were submitted and approved by the Division of State Architect (DSA). Construction bids were opened and held on June 13, 2024, with two companies submitting proposals. The lowest bid, from Calstate Construction Inc., came in at $3,244,777, which was substantially higher than the District’s approved budget. Due to the significant cost overage, the Governing Board rejected all bids, and the District engaged the project architect to explore value engineering options to modify the plans and reduce costs.
In an effort to bring costs in line with the budget, the project was put out for rebid in October 2024. Unfortunately, no contractors submitted proposals by the bid due date of November 8, 2024. With two failed bidding attempts, one resulting in over-budget bids and the other yielding no bids, the District explored alternative contracting methods.
California Public Contract law allows for exceptions to competitive bidding when the process proves impractical or does not provide an advantage. Given the circumstances, the Cambrian School District staff determined that proceeding with a negotiated contract was a justifiable and necessary course of action. Direct negotiation enables the District to secure a fair market price while ensuring the project moves forward.
In November 2024, District staff initiated negotiations with JL Modular and JL Construction, two firms with expertise in modular classroom construction. After extensive discussions, the District successfully negotiated a final contract price of $2,496,569, bringing the project within a reasonable budget. This approach resulted in a cost savings of $748,208 compared to the initial lowest bid received.
Cambrian currently has just over $2 million in Developer Fees in the bank. We anticipate collecting the balance of the funds in the next school year to fund this project completely.
By leveraging negotiations, the District has been able to get the best price possible, ensuring that the new classrooms at Steindorf will be built in a cost-effective and timely manner, ultimately benefiting students and staff. The District remains committed to fiscal responsibility while providing the necessary facilities to support student learning.
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Funding:
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Recommendation:
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Staff recommends that the Governing Board award the contract for the two additional classrooms at Steindorf to JL Construction.
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Approvals:
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Recommended By:
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Signed By:
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Carlena Grandey - Administrative Assistant to the Superintendent
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Signed By:
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Kristi Schwiebert - Superintendent
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