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REQUEST FOR COUNCIL ACTION <br />Attachment A <br />Date: April 20, 2015 <br />Item No.: <br />Department Approval City Manager Approval <br />1-ri— <br />Item Description: Approve Resolution Awarding Bid for Victoria Street Reconstruction <br />Project <br />1 BACKGROUND <br />z The Victoria Street reconstruction project involves reconstructing approximately one mile of <br />s roadway from Larpenteur Avenue to County Road B. The project also involves constructing a <br />4 new pathway along this same stretch of roadway and also extending a new sidewalk from County <br />s Road B to County Road B2 as part of the Park Renewal Program. <br />o A portion of this project will be assessed to benefiting properties. A public hearing was held on <br />7 February 23, 2015 to receive public comment on the proposed assessments after which the City <br />8 Council voted to approve the project. Assuming Council votes to award the contract this <br />9 evening, construction will commence in May and be complete by the end of the 2015 <br />10 construction season. Staff would then propose to hold a final public hearing in September of <br />11 2016 to certify the final assessments based on the final construction costs for the project. <br />12 On Monday, March 2, 2015, City Council approved the Victoria Street Reconstruction Project <br />13 plans and specifications and authorized staff to advertise forbids. Staff opened bids at 10 a.m. <br />14 on Thursday, April 9'. The following bids were received: <br />Contractor <br />Bid <br />North Valley, Inc. <br />$1,809,925.93 <br />Diesel Contracting <br />$1,812,435.74 <br />T.A. Tschifsky& Sons, Inc. <br />$1,948,804.15 <br />Park Construction Company <br />$2,051,232.50 <br />15 The engineer's estimate for the project was $1,753,411. The low bid is approximately 3.2% <br />16 higher than the engineer's estimate and can be primarily attributed to higher than expected <br />n bituminous prices and storm sewer construction costs. <br />18 POLICYOBJECTIVE <br />19 Based on past practice, the City Council has awarded the contract to the lowest responsible <br />zo bidder. For the Victoria Street Reconstruction Project, the apparent low bid is North Valley, Inc. <br />21 of Nowthen, Minnesota. <br />22 nNANCIAL DISCUSSION <br />23 Staff received four bids for this project. The low bid submitted by North Valley, Inc., in the <br />24 amount of $1,809,925.93, is 3.2% higher than the engineer's construction estimate of <br />Page 1 of 2 <br />