08/13/12 - Laserfiche WebLink

Home

components. City Attorney Goodrich stated the high bidder made reference to collusion in the letter received but there is no evidence of that occurring so he did not find that to be a legitimate argument. City Attorney Goodrich recommended the HRA proceed unless it wants to discuss why 15 contractors picked up bid plans and only three submitted a bid or why the engineer's estimate is $100,000 under the lowest bid. Another option before the HRA is to determine whether it would serve the public by re- bidding. Development Manager Lazan provided an overview of the North Commons bidding process. The HRA discussed whether the estimated pricing of $40,000 /lot was reasonable. Development Manager Lazan agreed it is tough to speculate on the market but higher prices were paid when the market was in a better place and $35,000 to $40,000 is indicative of where interest is being shown. The HRA discussed the timing of the project and whether the tight timeline resulted in fewer and higher bids. It was noted that the engineer's estimate had been used in the proforma to get to a break even point. Several Commissioners indicated the HRA is taking on a lot of risk, including borrowing from the City, when compared to the anticipated return. Development Manager Lazan noted that due to the need to extend utilities to this property after - the -fact, this project would not survive in the private market. It had been discussed that the HRA was a good body to take on this project to complete the neighborhood. Motion by Commissioner Ramsey, seconded by Commissioner Tossey, to reject all bids for the construction of North Commons and direct staff to schedule a future discussion on timing of the proj ect. Further discussion: Commissioner Tossey - stated support to reject bids, rebid in the spring, and then move the project forward. Development Manager Lazan raised the option of repackaging the project with a new schedule for a spring/early summer completion. Chairperson McGlone stated support for such an amendment, noting the contractors that Development Manager Lazan spoke with after the fact indicated the time schedule was burdensome and late in the season. He felt the HRA may get more bids by lifting the deadline. Commissioner Elvig offered a friendly amendment to keep the process moving forward and direct staff to repackage bids for project construction in the spring/early summer Commissioner Ramsey and Commissioner Tossey accepted the friendly amendment. The HRA indicated support for using Storm Water Utility Funds, if appropriate. HRA Executive Director Ulrich noted the HRA may be jeopardizing the $45,000 purchase agreement on one lot and will have to renegotiate. Housing and Redevelopment Authority / August 13, 2012 Page 3 of 5