Minutes - Council - 06/26/2007 - Laserfiche WebLink

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Motion carried. Voting Yes: Mayor Pro Tem Elvig, Councilmembers Strommen, Dehen, Jeffrey, and Look. Voting No: None. Absent: Mayor Gamec and Councilmember Olson. Case #15: Consider Award Bids for Well House No.4 Civil Engineer II Linton stated bids were opened this morning for the construction of Well House No.4, which is needed for connection of Wells No.7 and No.8 to the municipal system. The low bidder was Rice Lake Construction Group in the amount of $286,200.00. This is a significant increase over the engineer's estimate of $177,000.00. Well House No.4 is adjacent to the proposed water treatment facility, so they went forward with the intention that the building would be temporary in nature with 2' x 4' construction on concrete slab. Staff felt this type of construction should be considerably cheaper. However, in reviewing the costs, the building was estimated at $58,000 and came in at $100,500 for the low bidder. There was also an increase in equipment prices due to the increase in fuel costs and transportation, as well as labor cost increases. Mr. Linton advised staff recommends awarding the bid to Rice Lake Construction Group in the amount of $286,200.00. Mayor Pro Tem Elvig commented on the low bid coming in so much higher than the engineers estimate, and that there are three bids that came in even higher. Public Works Director Olson indicated there were a total of four bidders; one company determined not to bid. Staff was surprised at the bid results, but those that provided bids were similar and competitive. Mayor Pro Tem Elvig inquired about the cost ofthe previous well houses that were constructed. Public Works Director Olson replied past well houses have been done in all block and brick. The last one was in the $500,000 range, so there is a savings of a couple hundred thousand dollars due to the stick construction. In addition, there will be $48,000 of components that will be reusable. Mayor Pro Tem Elvig asked if there are any security issues in relation to utilities and public safety with the stick built structure, as opposed to a block building. Public Works Director Olson replied he does not think so. In 2010 to 2011 there will be the start up of the water treatment facility. He thinks most everything will be as secure as a home would be and does not believe that there are too many concerns relative to getting this replaced. Civil Engineer II Linton indicated he has had experience with wooden well houses in other cities and is not aware of any problems they had. Councilmember Dehen stated the $286,000 price seems high for the stick construction of a rectangular building. He asked if there is any sense to re-advertise for bids and if there would be any down side to doing so. City Council / June 26, 2007 Page 34 of 38