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. . . ARDEN HILLS CITY COUNCIL - May 22, 2006 4 Councilmember Holden asked on the west side of Lake Johanna Boulevard who was responsible for cleaning that area, Ms. Giga responded Lake Johanna Boulevard was a County Road and she believed the County was responsible for cleaning it, but she would check into this. 7. NEW BUSINESS A. Motion to Reiect Bids for the 2006 Ridl!ewood PMP Construction Proiect Ms. Giga stated bids were received and opened for the 2006 PMP Ridgewood Neighborhood Improvements on May 11, 2006. Bids were received from three contractors with Amt Construction submitting the lowest bid of$1,808,584.32, Engineering costs for the project were estimated at $393,310, resulting in a total project cost of $2,201,894.32. She indicated the low bid was approximately $289,625.90 higher than the Engineer's Estimate and $437,894.32 higher than the feasibility report. She stated staff has outlined some options on how to proceed with this project and the factors to consider with each option. Option 1 : Award the project to low bidder, The Storm Sewer Fund balance is currently negative by approximately $95,000. At the end of this project, the balance would be negative by approximately $200,000, Funds could be reallocated through an internal loan from another account to ensure these needs remain fully funded. Capital and Water Fund balances will also decrease significantly. Option 2: Reject all bids and re-advertise the project early in 2007. While the total project cost may not decrease, this would allow time for the fund balances to improve and allow for more sufficient fund allocations when preparing for next year's budget. She indicated this option would also allow staff time to further review the plans and find value engineering opportunities to reduce overall project costs. In order to remain proactive with the City's Pavement Management Program, staff would recommend incorporating next year's mill and overlay project with the Ridgewood Neighborhood Improvements construction contract. This may also be more cost-effective for both parts of the proj ect. Option 3: Reject all bids and postpone the project indefinitely. Staff does not recommend this option, as the plans for the project have been completed. While there would be some additional engineering costs to re-advertise the project, the longer the project is postponed, significant changes may be necessary to the plans. Ms, Giga stated there were two additional options to present to Council: Option 4: Award the project to the low bidder this evening, and authorize staff to discuss changes to the contract with the contactor, in an attempt to reduce project costs.