Agenda - Council - 09/27/2005 - Laserfiche WebLink

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Hal<anson' Anderson Assoc., [nc. 3601 Thurston Avenue, Anoka, MN 55303 Phone: 763/427-5860 Fax: 763/427-0520 September 23; 2005 Honorable Mayor and City Council City of Ramsey 15153 Nowthen Blvd. NW Ramsey, MN 55303 Re: Award of City Project 02-40, Sanitary Sewer, Watermain and StOrm Sewer Improvements Dear Mayor and City Council: The City received and opened bids for Project 02-40 on Thursday, September 22, 2005. A total of two bids were received as shown on the attached tabulation. The two bids and the Engineer's Estimate for the project were as follows: CONTRACTOR BID AMOUNT Kober Excavating, Inc. Dave Perkins Contracting, Inc. $447,486.05 $481,692.50 Engineer's Estimate $329,606.50 [n comparing the low bid to the Engineer's Estimate, the low bid is approximately 36 perCent higher than thc Engineers Estimate. The reason for the bid prices excluding our estimate are as follows: 1. The project schedule to complete the sewer and watermain has no room for error; and 2. The costs of materials have increased dramatically due to the current economic factors. in comparing the estimated costs and assessments in the feasibility reports with the bid prices the assessed cost has increased from $432,794.00 to $749,736.51 or approximately 73 percent. In addition to higher bid prices, the scope of the project was increased at the direction of the owner of the Oak Terrace Estates Mobile Home Park to provide for additional-storm sewer and street improvements. The increase in the scope of the project contributed to a large portion of the increase in the assessment. If the owner elects to scale back on the drainage and street improvements, this can be done during the construction phase of the project. Kober Excavating, Inc. is an Elk River contractor, and has satisfactorily completed simitar projects in the area in the past. We, therefore, recommend that the project be awarded to Kober Excavating, Inc. in the amount of $447,486.05 with the following conditions: