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<br /> - JUL-12-1996 11:24 P .lQ,.OS <br /> I' <br /> ns <br /> I July 12. 1996 <br /> File: 520-075-20 <br /> I - <br /> . Sl!LTh1Uwnns <br /> I J26 Energy M orne Honorable Mayor and City Council <br /> I 51. !'oJ, MN SS IOS City of Arden Hills <br /> 612.6J,j..J89 1450 W, Highway 96 <br /> Arden Hills, MN 55112 <br /> I 1.800.883-292J <br /> Fox 61H.4-9-146 RE: OLD illGHWAY 10 <br /> BID OPENING <br /> I Dear Mayor and Council: <br /> I As you are aware, bids were opened for the referenced project on July 10, 1996, at City <br /> Hall. Six bids were received and the bids ranged from a low bid of $139,972.50 as <br /> presented by Bonine Excavating, Inc., to a high bid of $344,874.93 as proposed by <br /> I Northdale Construction. A copy of the bid tabulation is attached for your review. The <br /> wide spread between bids indicates that the project may have been bid at a poor time of <br /> (Nil ENGINEE~ING: the summer. <br /> I ENVI~ON.""'Eo.rrAI <br /> MUNlCIPAl Apparently, spring construction began somewhat late this year and many contractors are <br /> r\ANNING busier than what might have been expected. This, in conjunction with a 21-day <br /> I ."'OWAIl! construction period, resulted in a low bid that was approximately $40,000 higher than the <br /> UCTURAl feasibility estimate for the project. As a result, the Engineer has discussed with City staff <br /> SU;'V'F"ING the various options available for the City's consideration relative to this project. Those <br /> I TllM"F/( are as follows: <br /> H.ANSP:Jf".c..T]O~ <br /> . Consider the award of the entire project and inform affected residents of the bid <br /> I maRICA~/M~Qi;l.NICAl results. This would require an inquiry as to the residents' willingness to accept <br /> fNGINEE~ING assessments that are approximately 35 to 40 % higher than previously estimated. <br /> HV/,C <br /> . Consider me award of the entire project, funding me excess costs with City Water <br /> I ~v..H OI::iHI~UTlON Utility funds. <br /> SCADA <br /> . Delete the northerly segment of watermain improvement between Wedgewood <br /> SYSTEM:::ONll0t.5 <br /> Circle and Highway 96, and complete the replacement of the watennain between <br /> I Valentine Court and County Road F as a City project. <br /> . Discard all bids and complete the work at some time in the future, perhaps with <br /> I possible bik.e trail construction or upon petition from benefitting residents. <br /> Based upon the high construction costs, the City may nOt feel the project is economically <br /> I feasible to complete at this time. MSA and the City's Public Works SUperimendent both <br /> feel it is importam to replace the southerly segment of watermain as soon as possible. <br /> OfFICESINo This is recommended as the number of repairs to this segmem continue to increase and <br /> I MINNEAPOlIS thc cost of such repairs will become more expensive with the required restoration of the <br /> PIll0lHAKE newly paved segment of Old Highway 10. The low bidder is unable to complete Schedule <br /> 1.0 as an independent project and the second low bidder, Kober Excavating, stated he <br /> 51. PAUL could do the work fot $2.500 above his bid for that segment, or $38,442.70. <br /> I eASECA An Equal Oppol"tW'litr EmploDyer <br /> I <br />