ITEM: 12.1 ADMINISTRATION - Jean M. Keely, City Engineer
Title
ACCEPT BID FROM DOUGLAS KERR UNDERGROUND, LLC IN THE AMOUNT OF $66,969.15 FOR THE 115TH AVENUE FORCE MAIN REPLACEMENT IMPROVEMENT PROJECT NO. 13-11
Background
Bids were received at 10:30 a.m., September 19, 2013, for Project No. 13-11. A total of five bids were received ranging from $66,969.15 to $87,601.00. The Engineer's estimate for construction and three lowest bidders are as follows:
Engineer's Estimate - Construction Cost |
$49,105.00 |
Douglas Kerr Underground, LLC |
$66,969.15 |
Penn Contracting, Inc. |
$71,901.00 |
Northdale Construction Co., Inc. |
$73,789.48 |
Bids have been checked and tabulated, and it has been determined that Douglas Kerr Underground, LLC of Mora, Minnesota is the lowest bidder. The project was included in the 2013 Capital Equipment Request to help with sanitary sewer back-ups in the area. Bids are higher that the Engineer's Estimate due to the contractor's schedule at the end of the construction season. The budgeted amount is $100,000. The Engineering Department has worked with Douglas Kerr Underground, LLC on previous contracts. I recommend the low bid be accepted and a contract entered into with Douglas Kerr Underground, LLC.
City Council is also asked to approve a 10% contingency to bring the total project budget to $73,666.07. The funding source for this project is sanitary sewer utility fund 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. 13-11, said bids were received on September 19, 2013, opened and tabulated according to law, and the following three lowest bids were received complying with the advertisement:
Douglas Kerr Underground, LLC |
$66,969.15 |
Penn Contracting, Inc. |
$71,901.00 |
Northdale Construction Co., Inc. |
$73,789.48 |
AND WHEREAS, Douglas Kerr Underground, LLC of Mora, 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 Douglas Kerr Underground, LLC for the designated improvements in the amount of $66,969.15.
2. A 10% contingency is hereby approved to bring the total project budget to $73,666.07 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 3rd day of October, 2013.