Agenda - Council - 07/25/2006 - Laserfiche WebLink

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. CASE # 5 CONSIDER AWARD BIDS FOR IMPROVEMENT PROJECT 05-27 WELCOMES ROAD STREET GRADING AND PAVING IMPROVEMENTS By: Steven J. Jankowski, City Engineer Background: Bids were received on July 7,2006 and low bid received was 12.4% higher than the estimated construction cost contained in the revised May 2006 feasibility study. This cost is an increase of 17% over the same project which was bid in February 2006 and is a result of the continuing increase in bituminous and energy costs. City code section 4.60.05 Subd 3 states that "no contract shall be let in the event that the lowest responsible bid exceeds the estimated cost by more than 1 0%." Consideration of award of this project was tabled by the City Council at the July 11,2006 meeting to allow the City Attorney and staff to review what options might be considered In pursuing this project. . Although this restricting language regarding the award originated within the City charter and has since been eliminated from the charter, it is the opinion of the City Attorney that an award of this contract contrary to the City code could result in a legal challenge that would jeopardize the entire proposed assessment. On the other hand postponing the proj~ct would most likely result in still higher project costs unless oil and bituminous prices decline which is not expected. The assessment procedures allow the opportunity for property owners being assessed a period of30 days beyond the date of the assessment hearing to appeal the assessment to District Court. While the assessment hearing is typically conducted after the project is completed or substantially completed, it is possible to hold the hearing prior to award to determine whether any substantial assessment challenges will be made by the property owners. If the schedule below were to be followed it would be possible to complete the project this construction season. Publish notice of Assessment Hearing Hold Assessment Bearing Award Project Issue Notice to Proceed July 28, 2006 August 14,2006 (Special Meeting) September 14, 2006 (Special Meeting) September 20, 2006 . The contract documents allow 25 working days for the completion of this project which would place the completion date on October 20th if there would be no days lost due to weather. The placement of the final bituminous wear course is temperature dependant and can generally be placed as late as November 1. The placement of the wear course would take one or two days. There is of course the possibility that weather conditions may not allow the placement of the wear course this season. The low bid contractor has indicated that he is agreeable to extending his bid prices beyond the thirty day~ 'Specified in the contract documents to September 15, 2006 provided that there would be a change -307-