Agenda - Council - 07/26/2016 - Laserfiche WebLink

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Advertisements for bids were published in the City's official newspaper,the Anoka County Union Herald, and in Finance and Commerce, on June 17th and June 24th. Observations/Alternatives: Observations: The proposed improvements are consistent with the City's long-term Street Maintenance Program. A total of eight(8)bids were received and opened on July 14th.All bids were checked for errors and omissions. A bid summary is included below, as well as in the attached resolution. CONTRACTOR TOTAL BID Valley Paving, Inc. $179,196.21 North Valley,Inc. $184,367.71 Midwest Asphalt Corp. $186,772.60 Northwest Asphalt,Inc. $196,818.76 Buck Blacktop,Inc. $199,091.00 Hardrives,Inc. $201,812.69 Park Construction Company $202,957.47 Omann Brother's Paving Inc. $214,577.66 Engineer's Estimate $262,862.00 All bids were favorable. The lowest responsible bid was received from Valley Paving,Inc. in the amount of $179,196.21 which is almost 32%less than the Engineer's estimate for construction costs of$262,862.00. The reason for this significant difference is that Staff applied an estimated unit price for bituminous pavement milling of $4.50 per square yard,resulting in a total estimated pavement milling cost of$75,735. By comparison,the unit prices bid by all eight bidders ranged from$0.50 to $1.33 per square yard,resulting in total bid prices ranging from $8,415 to $22,383.90. Staff estimated the unit price for bituminous milling based on bid prices received for recent overlay projects. However,the estimated unit price for future mill and overlay projects will be adjusted down based on these most recent bid prices. Alternatives: Alternative#1 —Motion to adopt Resolution 416-07-134 accepting bids and awarding a construction contract for Improvement Project#16-00,Division B; 2016 Mill and Overlay Improvements. Alternative 92—Motion to deny adoption of Resolution 916-07-134 at this time. Funding Source: The total estimated project cost,which includes construction costs plus 14%for indirect costs covering administrative, engineering, finance and legal fees, is $204,284. Project costs will be funded using a combination of street overlay bond proceeds, special assessments to benefiting properties, and stormwater utility funds in the following estimated amounts: • Special assessments=$2,850(3 benefiting properties are each proposed to be assessed$950) • Street overlay bond funds= $186,556 • Stormwater utility funds= $14,878 Street overlay bonds were issued in the amount of$300,000 to cover all eligible project costs, including costs to be recovered through special assessments to benefiting properties. A special benefit consultation report will not be ordered for this project due to the minimal amount of special assessments. Recommendation: