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Department Approval <br />� <br />Item Description <br />BACKGROUND <br />��� <br />� <br />REQUEST FOR COUNCIL ACTION <br />Date: 1/28/13 <br />Item No.: 7.0 <br />City Manager Approval <br />Award Contract for Demolition of the buildings on the PIK Terminal Co. <br />Limited Partnership property located at 2680/ 2690 Prior Avenue <br />On June 18, 2012, the City Council approved the Settlement agreement for the purchase of land <br />from PIK Terminal Co. Limited Partnership. One of the terms of settlement included in this <br />agreement was the City would undertake the demolition of the existing structures on the PIK <br />parcels and PIK would be assessed all costs associated with the demolition (e.g. engineering <br />reports, city staff time, building removal, etc.). The terms of the assessment would include: <br />A twelve year assessment with a iwo year repayment deferral with no interest accruing <br />and a ten-year repayment schedule; <br />• An interest rate of siX percent <br />• Full repayment of the assessment would be due upon sale of the PIK property. <br />The City developed plans and specifications needed to demolish the buildings. This project was <br />previously advertised for bids in November 2012. That method of procurement was seasonably <br />abandoned via rejection of all bids by the City Council action dated December 10, 2012. <br />The estimated project cost is $25,000.00 -$99,999.99. According to state statutes, the City can <br />send out a Request for Quotations for projects that are within this cost range. As such, the City <br />requested quotations for this project from four of the contractors that submitted bids on this <br />project in December. <br />POLICY OBJECTIVE <br />The buildings in the PIK Terminal property are blighted and abandoned. The demolition will <br />increase safety and aesthetics in the Twin Lakes Redevelopment Area. <br />Based on past practice, the City Council has awarded contracts to the lowest responsible bidder <br />whose bid complies with the conditions within the specifications. The following is a summary <br />of the auotes received for this <br />BIDDER <br />Urban Companies <br />Veit and Company, Inc. <br />Carl Bolander & Sons Co. <br />Frattalone Companies, Inc <br />AMOUNT <br />$ 39,480.00 <br />$ 64,159.00 <br />$ 74,375.00 <br />$ 116,500.00 <br />For this project, the apparent low quote is Urban Companies of St. Paul, Minnesota. Upon <br />review of all of the quotes received, staff found that their quote complied with the proj ect <br />Page 1 of 2 <br />