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��� <br />� <br />REQUEST FOR COUNCIL ACTION <br />Department Approval <br />r�. <br />Date: Apri120, 2015 <br />Item No.: 8.f <br />City Manager Approval <br />Item Description: Approve Resolution Awarding Bid for Victoria Street Reconstruction <br />Proj ect <br />BACKGROUND <br />The Victoria Street reconstruction project involves reconstructing approximately one mile of <br />roadway from Larpenteur Avenue to County Road B. The project also involves constructing a <br />new pathway along this same stretch of roadway and also extending a new sidewalk from <br />County Road B to County Road B2 as part of the Park Renewal Program. <br />A portion of this project will be assessed to benefiting properties. A public hearing was held on <br />February 23, 2015 to receive public comment on the proposed assessments after which the City <br />Council voted to approve the project. Assuming Council votes to award the contract this <br />evening, construction will commence in May and be complete by the end of the 2015 <br />construction season. Staff would then propose to hold a final public hearing in September of <br />2016 to certify the final assessments based on the final construction costs for the project. <br />On Monday, March 2, 2015, City Council approved the Victoria Street Reconstruction Project <br />plans and specifications and authorized staff to advertise for bids. Staff opened bids at 10 a.m. <br />on Thursday, April 9th. The following bids were received: <br />Contractor Bid <br />North Valle , Inc. $1,809,925.93 <br />Dresel Contracting $1,812,435.74 <br />T.A. Tschifsk & Sons, Inc. $1,948,804.15 <br />Park Construction Com an $2,051,232.50 <br />The engineer's estimate for the project was $1,753,411. The low bid is approximately 3.2% <br />higher than the engineer's estimate and can be primarily attributed to higher than expected <br />bituminous prices and storm sewer construction costs. <br />POLICY OBJECTIVE <br />Based on past practice, the City Council has awarded the contract to the lowest responsible <br />bidder. For the Victoria Street Reconstruction Project, the apparent low bid is North Valley, Inc. <br />of Nowthen, Minnesota. <br />FINANCIAL DISCUSSION <br />Staff received four bids for this project. The low bid submitted by North Valley, Inc., in the <br />amount of $1,809,925.93, is 3.2% higher than the engineer's construction estimate of <br />$1,753,411. The higher cost is attributed to higher than anticipated bituminous paving prices <br />Page 1 of 2 <br />