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Councilmember Jeffrey inquired if there will be an opportunity for an intern to assist with onsite <br />observations. <br /> <br />Assistant Director of Public Works Olson replied absolutely. <br /> <br />Councilmember Elvig asked Mr. Olson to pass along his appreciation to Bolton & Menk. <br /> <br />Motion by Councilmember Elvig, seconded by Councilmember Cook, to adopt Resolution 06- <br />02-069 awarding Improvement Project #03-20 to LaTour Construction in the amount of <br />$6,693,820.17, contingent upon formal execution of six million contribution/credit agreement <br />with Oakwood Land Development. <br /> <br />Motion carried. Voting Yes: Mayor Garnet, Councilmembers Elvlg, Cook, Jeffrey, Olson, <br />Pearson, and Strommen. Voting No: None. <br /> <br />Motion by Councilmember Elvig, seconded by Councilmember Jeffrey, to direct staff to enter <br />into an agreement with Bolton & Menk, Inc. to provide construction engineering services for this <br />project at the standard hourly rates referenced in the proposal in an amount not to exceed <br />$475,200. <br /> <br />Motion carried. Voting Yes: Mayor Gamec, Councilmembers Elvig, Jeffrey, Cook, Olson, <br />Pearson, and Strommen. Voting No: None. <br /> <br />Case #10: <br /> <br />Reject Bids for Improvement Project 05-27 Welcomes Road Street Grading <br />and Paving Improvements <br /> <br />Assistant Public Works Director Olson explained that bids for this project were opened on <br />February 23, 2006 and bids were received as follows: <br /> <br />Universal Enterprises of Mid Minnesota, Inc. <br />Hard Drives 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 $112,810, <br />which was in the feasibility study prepared in February of 2005. Three major factors contributed <br />to this cost increase. The unit price of bituminous paving is approximately 40 percent higher <br />than what was being bid twelve months ago when the estimates were prepared. The pavement <br />structure was thickened on the eastern one third of the project upon the recommendation of a <br />soils engineer. This was necessary to compensate for the presence of questionable soils in this <br />area, which were discovered to contain buried topsoil with trace organics. A third factor <br />included a bid item for imported granular material, which is necessary to raise the grade of the <br />roadway to provide separation from the higher water table in the area. City Code does not allow <br />the award of any assessed project in which the low bid received is greater than ten percent higher <br /> <br />City Council / February 28, 2006 <br /> Page 15 of 18 <br /> <br /> <br />