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Timeframe:
<br />Staff estimates up to 10 minutes will be required to present this case and answer questions.
<br />Observations:
<br />Due to replacing the Ditch 51 culvert and other associated work, 173rd Avenue will be fully closed for
<br />approximately 4 to 6 weeks between Puma Street and Iguana Street. A signed detour route will be set up as part of
<br />the project.
<br />Alternatives:
<br />Alternative #1 — Motion to adopt Resolution #26-195 accepting bids and awarding a contract to North Valley, Inc.
<br />for the total amount of $1,129,093.12 for 2026 MSA Pavement Overlay Improvements, Improvement Project
<br />#26-02.
<br />Alternative #2 — Motion of other.
<br />Funding Source:
<br />Funding for this improvement is proposed to come from Municipal State Aid Funds and Storm Water Utility
<br />Funds.
<br />On August 17, 2026, a total of four (4) bids were received, opened, and tabulated, and the following bids were
<br />found to comply with the advertisement for bids.
<br />Contractor
<br />Total Bid
<br />North Valley, Inc.
<br />$1,129,093.12
<br />Knife River Corporation — North Central
<br />$1,222,652.30
<br />Park Construction Company
<br />$1,237,145.67
<br />GMH Asphalt Corporation
<br />$1,285,629.12
<br />Engineer's Estimate
<br />$1,329,122.25
<br />The bid of North Valley, Inc. of Nowthen, Minnesota, in the amount of $1,129,093.12 for the total bid of said
<br />improvements in accordance with the approved plans and specifications and advertisement for bids, is the lowest
<br />responsible bidder. Adding indirect costs in the amount of 14-percent brings the total project costs to
<br />$1,287,166.16.
<br />The bid is 15-percent lower than the engineer's estimate, primarily due to lower than anticipated pavement
<br />milling and paving pricing.
<br />Funding Source Breakdown:
<br />Funding Source
<br />Construction Costs
<br />Indirect Costs
<br />Total Cost
<br />Municipal State Aid
<br />$1,068,884.71
<br />$149,643.86
<br />$1,218,528.57
<br />Storm Sewer Utility
<br />$60,208.41
<br />$8,429.18
<br />$68,637.59
<br />Project Total
<br />$1,129,093.12
<br />$158,073.04
<br />$1,287,166.16
<br />The CIP level estimate had a total estimated project cost of $1,290,087 (1,121,815 MSA Funds, $168,272 Storm
<br />Water Utility Funds). The final project costs may change depending upon bid prices and actual construction
<br />quantities.
<br />City staff proposes to administer and inspect construction. Plans and specifications were prepared in-house as part
<br />of staffs normal duties.
<br />Recommendation:
<br />Staff recommends Alternative # 1.
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