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

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Motion by Councilmember Cook, seconded by Councilmember Pearson, to approve the completed negotiations with Mr. Dvorak for the parcel along the NW Sanitary Sewer Alignment in the total negotiated amount of $5,000 for the parcel, contingent on Mr. Dvorak signing the easement. Motion carried. V oting Yes: Mayor Gamec, Councilmembers Cook, Pearson, Jeffrey, Olson, and Strommen. Voting No: None. Absent: Councilmember Elvig. Case #4: Consider Award Bids for Improvement Project #05-27 Welcomes Road Street Grading and Paving Improvements City Engineer Jankowski stated bids for Improvement Project No. 05-27 Welcomes Road Street Grading and Paving Improvements were opened on Friday, July 7, 2006. Four bids were received; all from the original bidders. The low bid was from Northwest Asphalt in the amount of $225,519.90, which is 12.4% higher than the revised feasibility study estimate of $200,595 that 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%. Mr. Jankowski indicated staff anticipates that this project will not receive lower costs 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. Staff recommends tabling this item for two weeks, notifying the residents of the results and the options to be considered, and to inform them that this project will be discussed at the next Council meeting. Mayor Gamec indicated staff should inform the residents this whole situation will be discussed at the next Council meeting. He stated the Council may want to look at other funding options to assist with the project cost. Councilmember Cook suggested a cap at 110%. City Attorney Goodrich advised the provision in the City Code needs to be reviewed to be sure it is followed correctly. Motion by Councilmember Jeffrey, seconded by Councilmember Cook, to table consideration of the award of bids for Improvement Project #05-27 Welcomes Road Street Grading and Paving Improvements. Motion carried. Voting Yes: Mayor Gamec, Councilmembers Jeffrey, Cook, Jeffrey, Olson, Pearson, and Strommen. Voting No: None. Absent: Councilmember Elvig. City Council / July 11,2006 Page 7 of 13