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<br />ARDEN HILLS CITY COUNCIL - MARCH 8 1999
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<br />B.
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<br />Resolution #99-07, Accepting Bids and Authorizing Execution of Contract in the
<br />Matter of the Improvement of West Round Lake Road, Phase I
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<br />Mr. Brown explained that on January 14, 1999, eleven bids were received and opened for the
<br />West Round Lake Road, Phase 1 Improvement Project. The bids came in with a tight spread.
<br />Tbe lowest bid was 10% below the estimate, there were a total of four bids below tbe estimate
<br />and seven bids above the estimate. The three low bidders were Don Zappa & Sons, Inc., Arnt
<br />Construction Company, Inc., and Forest Lake Contracting.
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<br />Tbe project was bid in four parts:
<br />I. The Basic Roadway, including storm sewer and ponds, watennain, and sanitary sewer.
<br />2. Alternative A, removal of all excess soils from the Indykiewicz property.
<br />3. Alternative B, landscaping, including trees, shrubs, sod, seed, and irrigation to the median
<br />area.
<br />4. Alternative C, paver bricks in the narrow areas of the median versus concrete.
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<br />The bid Alternate A is the most significant item and it ties in with the acquisition oftbe property.
<br />Most bids for Alternative A had been between $80,000 to $100,000, which is a common
<br />excavation price. With the exception of Jay Bros., the bids did not include a credit for the black
<br />dirt. Jay Bros., Inc. offered a $0.60 credit per cubic yard which would significantly reduce the
<br />cost for excavation, however, Jay Brothers would still be the sixth lowest bidder.
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<br />Iftlle Base Bid and Alternative B were chosen, Don Zappa & Sons would have the lowest bid. If
<br />Alternative A is included, Forest Lake Contractors would be the low bidder. The bids for
<br />Alternate C would not change the order ofthe lowest bidders.
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<br />The City Staff had performed an extensive review of alternatives to avoid having the contractor
<br />deal with the black dirt. The hope was to find someone to buy the dirt to recoup some of the
<br />costs. The result of this effort was that the City did not receive any offers other than minor
<br />credits, whicb are not guaranteed. In most cases, when the transportation of the dirt was
<br />considered, tbere ended up being no credit.
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<br />An option was offered to the three low bidders to extend tbe time for tbe removal of the black
<br />dirt. The original contract had stated a date of July 31, 1999. The bidders where asked, if they
<br />were allowed until the end of tbe year to remove tbe black dirt, would tbis change their bids.
<br />Revised quotes were received from Don Zappa & Sons, Inc. and Forest Lake Contracting. Forest
<br />Lake essentially proposed to remove the soil free of cost with the extension. Don Zappa & Sons,
<br />Inc. had offered a $2.06 unit price to remove the soil. This was lower than their original bid,
<br />however, it was still higher than the bid by Forest Lake Contracting.
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<br />Based on research by Staff to attempt to sell tbe black dirt, which did not result in a profitable
<br />route, including Alternative A in the contract pusbes the award of the bid to Forest Lake
<br />Contracting. If the City includes Alternative B for the landscaping package, as recommended by
<br />the Staff, Forest Lake Contracting's awarded bid would be $794,725.05. The City Council may
<br />also consider awarding Bid Alternative C, which would add approximately $10,000 to the
<br />contract.
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