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<br />2007 PMP
<br />3/21/2007
<br />Page 2
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<br />DISCUSSION
<br />
<br />Based on past practice, the City Council has awarded the contract to the lowest responsible
<br />bidder. In the case of2007 Contract B, the lowest bidder is Midwest Asphalt Corporation, of
<br />Hopkins, Minnesota.
<br />
<br />FINANCIAL IMPLICATIONS
<br />
<br />We received nine bids for 2007 Contract B. The low bid submitted by Midwest Asphalt
<br />Corporation., $1,106,991.85, is 5% lower than the Engineer's construction estimate of
<br />$1,170,519.90. The Arden Hills portion ofthe contract is $646,410.48, which is 4% lower than
<br />the engineer's estimate of $675,436.24. The following is a list of the bids received:
<br />
<br />BIDDER AMOUNT
<br />Midwest Asphalt, Inc. $1,106,991.85 I
<br />Hardrives, Inc. $1,119,776.97
<br />Astech Corp. $1,123,189.08
<br />Northwest Asphalt, Inc. $1,128,076.07
<br />North Valley, Inc. $1,139,329.88
<br />T.A. Schifsky and Sons, Inc. $1,143,271.50
<br />Tower Asphalt $1,158,163.86
<br />Park Construction $1,254,569.66
<br />Bituminous Roadways $1,273,010.14
<br />
<br />To establish a total project cost for the improvements, engineering and overhead costs need to be
<br />included. The non-assessable items include 15% for engineering fees. The assessable portion, the
<br />street improvements, includes a 32% overhead. This is consistent with what was discussed in the
<br />feasibility report and subsequently approved by the Council. The Assessment Policy lists a 37%
<br />overhead; however, this was reduced to 32%, since the City of Roseville's proposal for the
<br />project was based on 15% for engineering fees, not 20%, as is listed in the policy. The City's
<br />portion of the project costs are currently budgeted in the General Capital Fund and Utility
<br />Enterprise Funds (sanitary sewer, surface water and watermain funds). The following shows a
<br />breakdown and comparison of budgeted amounts, engineer's estimate, and contract prices.
<br />
<br />Improvements 2007 Budget Engineer's Estimate Contract Prices
<br />
<br />Roadway $ 787,015 $ 654,231 $ 655,509
<br />Storm Sewer $ 20,000 $ 12,630 $ 10,991
<br />Sanitary Sewer $ 20,000 $ 8,204 $ 6,329
<br />Watermain $ 135,000 $ 185,945 $ 154,966
<br />TOTAL $ 962,015 $ 861,010 $ 827,795
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