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REJECT BIDS FOR IMPROVEMENT PROJECT 05-27 <br />WELCOMES ROAD STREET GRADING AND PAVING IMPROVEMENTS <br />By: Steven J. Jankowski, City Engineer <br /> <br />Background: <br /> <br />Bids for this project were opened on Thursday, February 23, 2006 and bids were received <br />as follows: <br /> <br />Universal Enterprises of Mid Minnesota Inc <br />HardDrives Inc. <br />North Valley Inc. <br />W B Miller Inc. <br />Northwest Asphalt Inc. <br /> <br />$192,947.82 <br />$197,352.11 <br />$200,761.00 <br />$211,229.20 <br />$224,816.70 <br /> <br />The low bid received is substantially higher than the estimated construction cost of <br />$112,810 which was in the feasibility study prepared in February of 2005. Three major <br />factors contributed to this cost increase. The unit price of bituminous paving is <br />approximately 40% higher than that which was being bid twelve months ago when the <br />estimates were prepared. The pavement structure was thickened on the eastern one third <br />of the project upon the recommendation of a soils engineer. This was necessary to <br />compensate for the presence of questionable soils in this area which were discovered to <br />contain buried topsoil with trace orgtmics. A third factor included a bid item for imported <br />granular material which is necessary to raise the grade of the roadway to provide <br />separation form the high water table in the area. <br /> <br />City code does not allow the award of any assessed project in which the low bid received <br />is greater than 10% higher than the estimated cost. The bids received will need to be <br />rejected. It will be possible to initiate the public improvement process with a public <br />hearing on this project with the known costs. This process would allow for new bids to be <br />received in July and construction of the project in August of 2006. <br /> <br />Recommendations: <br /> <br />Staff recommends the following: <br /> <br />1. That the attached resolution 06-02-XXX be adopted rejecting all bids. <br /> <br />2. That staffbe directed to revise the feasibility study to reflect the cost associated <br /> with the project as currently designed. <br /> <br />3. That resolution 06-02-XXX be adopted setting a date of March 28, 2006 for a <br /> public heating on this project. <br /> <br />-207- <br /> <br /> <br />