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ARDEN HILLS CITY COUNCIL—MARCH 26, 2018 10 Public Works Director/City Engineer Polka stated on February 12, 2018, the City Council adopted Resolution 2018-014 Approving the Plans and Specifications and Ordering the Advertisement for Bids. Bids were opened on Thursday, March 22, 2018. The bid contained alternates I and 2A which included PVC pipe for the two watermain segments (County Road E2 and Old Snelling Road) and alternates I and 2B which included HDPE pipe for the watermain segments. Alternates IA and 2A (PVC) were less expensive than the HDPE alternate and staff is recommending to award the base bid with Alternate IA and 2A. There was a total of two bids received. The following table lists the bidders name and their total bid including Alternates IA +2A: Bidder Total Bid including Alt. No. 1A+ 2A Sunram Construction, Inc. $3,376,269.85 T.A. Schifsky& Sons, Inc. $3,958,864.85 Public Works Director/City Engineer Polka reported both bids are higher than the Engineer's estimate which is $3,019,882.02. In general, all bid items were higher than estimated. Public Works Director/City Engineer Polka explained the Council could choose to eliminate schedules from the bid award. However, Schedules A and D are trail and storm sewer for the same trail segment and must be awarded together as are Schedules B and E. In addition, as discussed at a recent work session, the watermain loop in Old Snelling is needed for future Rice Creek Common development. If the Council chose to eliminate the North Old Snelling Trail and Storm Sewer Improvements (Schedules B and E),the contract amount would be $2,157,804.85. Public Works Director/City Engineer Polka stated Sunram has completed similar projects successfully in the metro area. Staff reviewed the cost sharing that would occur between the City and the County. It was noted the City would be responsible for $1.87 million of the project. She noted Sunram was the lowest responsible/responsive bidder and recommended awarding the Old Snelling Trail and Watermain Improvements to Sunram in the amount of $3,376,269.85 in Resolution 2018-022. Councilmember Holden stated she was surprised to see the City only received two bids for this project. Public Works Director/City Engineer Polka commented she was surprised to see the City only received two bids as well. She understood this was a unique project which may have deterred some of the larger companies from bidding. Councilmember Holmes stated she was troubled by the expense of the project and asked if the Old Snelling trail should be moved to the west side of the roadway. Further discussion ensued regarding the placement of the trail along Old Snelling Road. Councilmember McClung commented the feasibility studies have shown that this would be even more expensive for the City.