Agenda - Council - 07/11/2006 - Laserfiche WebLink

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CASE # 4 CONSIDER AWARD BIDS FOR IMPROVEMENT PROJECT #05-27 WELCOMES ROAD STREET GRADING AND PAVING IMPROVEMENTS By: Steven J. Jankowski, City Engineer Background: Bids for this project were opened on Friday July 7, 2006 and the following four bids were received as follows: Northwest Asphalt North Valley Inc. $225,519.90 $227,680.00 $242,554.03 $283,799.90 Hardrives WBMiller All four bids were received from contractor who had submitted bids previously on this project in February of 2006. You will recall that the bids received back in February were rejected because they were significantly higher than the original feasibility study. The low bid received is $225,519.90 which was received from Northwest Asphalt which is 12.4% higher than the feasibility study estimate of $200,595 which was revised in March 2006. The primary cause for the costs exceeding the estimate is related to the cost of bituminous resulting from increasing oil prices. The cost increase due to bituminous was $15,600 higher than the February bid, an increase of 18.4%. Staff anticipates that this project will not receive a lower cost through re-bidding of the project but will continue to increase along with the price of oil. Although City Code prohibits the award of a project which exceeds the estimated cost by more than 10%, staff is reviewing this provision with the City Attorney to determine whether the code language would allow leeway for award since the cost is marginally over the estimate and $10,000 in contingencies are included in the total project cost. Recommendations: To be presented at the meeting upon consultation with the City Attorney Action: Based upon discussion. Reviewed By: Public Works Director/Principal Engineer City Attorney CC: 07/11/06 -99-