ADMINISTRATION - Jon Haukaas, Director of Public Works
Title
ACCEPT BID FROM GRIDOR CONSTRUCTION, INC IN THE AMOUNT OF $24,668,600.00 FOR WATER TREATMENT PLANT NO. 4, IMPROVEMENT PROJECT NO. 16-08
Background
Bids were received at 2:00 PM, March 12, 2019 for Project No. 16-08. A total of three bids were received ranging from $24,668,600.00 to $25,568,000.00. The Engineer’s Estimate and the three lowest bidders are as follows:
|
Engineer’s Estimate |
$28,000,000.00 |
|
Gridor Construction, Inc. |
$24,668,600.00 |
|
Rice Lake Construction Group |
$24,799,400.00 |
|
Magney Construction, Inc. |
$25,568.000.00 |
|
|
|
Bids have been checked and tabulated, and it has been determined that Gridor Construction, Inc. of Buffalo, Minnesota is the lowest bidder. The City’s consultant engineer design team, Barr Engineering and Bolton & Menk, Inc. have worked with Gridor Construction, Inc. on previous projects and, in their opinion, Gridor Construction, Inc. is qualified to perform the work. Staff and the consultant engineers have reviewed the bid documents and recommend the low bid be accepted and a contract entered into with Gridor Construction, Inc.
City Council is also asked to approve an 8% contingency to bring the total project budget to $25,664,000. The funding sources for this project are the Water Utility Fund and Water Utility Revenue Bonds, and there are sufficient funds to cover these costs.
Recommendation
By motion, adopt the resolution.
Body
WHEREAS, pursuant to advertisement for bids for Improvement Project No. 16-08, said bids were received on March 12, 2019, opened and tabulated according to law, and the following three low bids were received complying with the advertisement:
|
Gridor Construction, Inc. |
$24,668,600.00 |
|
Rice Lake Construction Group |
$24,799,400.00 |
|
Magney Construction, Inc. |
$25,568.000.00 |
AND WHEREAS, Gridor Construction, Inc. of Buffalo, 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 Gridor Construction, Inc. for the designated improvements in the amount of $24,668,600.00
2. An 8% contingency is hereby approved to bring the total project budget to $25,664,000.00 and the Director of Public Works is hereby authorized to sign all change orders up to the authorized project budget amount with the exception that any single change order item that exceeds $250,000.00 will be brought back before Council for approval.
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 one remaining unsuccessful bidder 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.
BE IT FURTHER RESOLVED by the City Council of the City of Blaine that, where allowed, the City intends and reasonably expects to reimburse itself for the payment of this contract out of the proceeds of a borrowing (general obligation water revenue bonds) to be made by the City after the date of payment of the expenditures.
PASSED by the City Council of the City of Blaine this 21st day of March, 2019.