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<br />REQUEST FOR COUNCIL ACTION <br /> Date: 12/10/2012 <br /> Item No.: 7.e <br />Department Approval City Manager Approval <br />Item Description: Award Contract for Demolition of the buildings on the PIK Terminal Co. <br />Limited Partnership property located at 2680/ 2690 Prior Avenue <br />Page 1 of 2 <br />B ACKGROUND 1 <br />On June 18, 2012, the City Council approved the Settlement agreement for the purchase of land 2 <br />from PIK Terminal Co. Limited Partnership. One of the terms of settlement included in this 3 <br />agreement was the City would undertake the demolition of the existing structures on the PIK 4 <br />parcels and PIK would be assessed all costs associated with the demolition (e.g. engineering 5 <br />reports, city staff time, building removal, etc.). The terms of the assessment would include: 6 <br /> A twelve year assessment with a two year repayment deferral with no interest accruing 7 <br />and a ten-year repayment schedule; 8 <br /> An interest rate of six percent 9 <br /> Full repayment of the assessment would be due upon sale of the PIK property. 10 <br />The City developed plans and specifications needed to demolish the buildings. Bids were 11 <br />opened on November 29, 2012. 12 <br />P OLICY O BJECTIVE 13 <br />The buildings in the PIK Terminal property are blighted and abandoned. The demolition will 14 <br />increase safety and aesthetics in the Twin Lakes Redevelopment Area. 15 <br />Based on past practice, the City Council has awarded contracts to the lowest responsible bidder 16 <br />whose bid complies with the conditions within the specifications. The following is a summary 17 <br />of bids received for this project: 18 <br />BIDDER AMOUNT <br />Urban Companies $ 47,550.00 <br />Veit and Company, Inc. $ 50,478.00 <br />Carl Bolander & Sons Co. $ 74,175.00 <br />Belair Builders, Inc. $ 93,110.00 <br />Rachel Contracting $ 111,360.00 <br />Landwehr Contracting $ 122,935.00 <br />Frattalone Companies, Inc $ 132,800.00 <br />New Look Contracting $ 165,401.25 <br />Max Steininger, Inc. $ 197,916.00 <br />For this project, the apparent low bid is Urba n Companies of Rogers, Minnesota. Upon review 19 <br />of the bids, staff found that their bid did not comp ly with the project specifications. According 20