ITEM: 12.3 ADMINISTRATION - Jean M. Keely, City Engineer
Title
ACCEPT BID FROM RUM RIVER CONTRACTING CO. IN THE AMOUNT OF $397,567.83 FOR THE 93RD LANE INDUSTRIAL PARK AREA STREET IMPROVEMENTS, PHASE 1 (IMPROVEMENT PROJECT NO. 11-16)
Background
Bids were received at 10:00 a.m., July 2, 2012, for Project No. 11-16. A total of seven (7) bids were received ranging from $397,567.83 to $488,762.58. The Engineer's estimate for construction and three lowest bidders are as follows:
Engineer's Estimate - Construction Cost |
$426,000.00 |
Rum River Contracting Co. |
$397,567.83 |
Knife River |
$412,611.28 |
North Valley, Inc. |
$413,569.18 |
Bids have been checked and tabulated, and it has been determined that Rum River Contracting Co. of Princeton, Minnesota is the lowest bidder. The Engineering Department has worked with Rum River Contracting Co. on previous contracts. I recommend the low bid be accepted and a contract entered into with Rum River Contracting Co.
City Council is also asked to approve a 10% contingency to bring the total project budget to $437,324.61. The funding sources for this project are assessments and the City's Pavement Management Program funds, and there are sufficient funds to cover these costs.
Recommendation
By motion, approve the resolution.
Body
WHEREAS, pursuant to advertisement for bids for Improvement Project No. 11-16, said bids were received on July 2, 2012, opened and tabulated according to law, and the following three lowest bids were received complying with the advertisement:
Rum River Contracting Co. |
$397,567.83 |
Knife River |
$412,611.28 |
North Valley, Inc. |
$413,569.18 |
AND WHEREAS, Rum River Contracting Co. of Princeton, Minnesota is the lowest responsible bidder.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Blaine as follows:
1. The Mayor and City Manager are hereby authorized and directed to enter into a contract with Rum River Contracting Co. for the designated improvements in the amount of $397,567.83.
2. A 10% contingency is hereby approved to bring the total project budget to $437,324.61 and the Public Services Manager is hereby authorized to sign all change orders up to the authorized project budget amount.
3. The City Clerk is hereby authorized and directed to return forthwith to all bidders the bid bonds submitted with their bids, except the three lowest bidders. When a contract is duly executed, the bid bonds of the two remaining unsuccessful bidders will be returned. The bid bond of the successful bidder will be retained until the performance and payment bonds have been executed and approved, after which the bid bond will be returned.
PASSED by the City Council of the City of Blaine this 12th day July, 2012.