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File #: RES 22-117    Version: 1 Name: Rejection of the Happy Acres project bid
Type: Resolution Status: Passed
File created: 7/6/2022 In control: City Council
On agenda: 7/6/2022 Final action: 7/6/2022
Title: Resolution Receiving and Rejecting Bids for Happy Acres Park General Site Improvements, Project No. 22-41
Sponsors: Jerome Krieger
Attachments: 1. Bid Tab, 2. Bid Abstract

Administration - Jerome Krieger, Senior Parks and Recreation Manager

 

Title

Title

Resolution Receiving and Rejecting Bids for Happy Acres Park General Site Improvements, Project No. 22-41

end

 

Executive Summary

Pursuant to the City’s purchasing policy and statutory bid requirements, staff recommends Council receive and reject all bids for the proposed improvements at Happy Acres Park, including reconstruction of the parking lot and footbridge as well as storm drainage improvements. This recommendation is due to the bids significantly exceeding the appropriated budget.

 

Background

The City Council first discussed the Happy Acres project in December of 2020. The project was adopted in the 2021 Parks Development CIP wherein appropriations included $525,000 for Happy Acres Park improvements and $125,000 for stormwater improvements for a project total of $650,000.  Due to additional wetland delineations required by the Coon Creek Watershed, the project did not receive permitting until February 2022.

 

Bid opening for the project took place on March 29, 2022. All bids were checked and tabulated. The apparent low bidder was All Phase Companies at $814,331.36. However, their bid had an incomplete submission and was disqualified. The lowest qualified bid was Sunram Construction at $823,803.

 

Strategic Plan Relationship

This project meets the well-maintained infrastructure strategic plan priority.

Board/Commission Review

The Park Board reviewed this project in 2020 and recommended it for approval by the Council.

 

Financial Impact

Currently, with appropriations ($650,000) well below the actual low bid of $823,803 (before contingencies), there would need to be identified funding sources to close this gap before proceeding. Additionally, the impact of adding appropriations for this project on other projects for which appropriations have been made will have to be taken into consideration before proceeding.

 

Staff Recommendation

After reviewing the matter with the City Attorney and Finance staff, staff recommends the Council reject the currents bids and reconsider the scope and order of the project to ensure it is cost effective. Staff also recommends the Council proceed with re-bidding the parking lot component of the project this year, however, because there is an immediate need to complete the parking lot at Happy Acres. Alternate bids could be accepted with the parking lot bid for the bridge and additional stormwater work.

 

Attachment List

Happy Acres Bid Tab

Happy Acres Bid Abstract

 

Body

 

WHEREAS, pursuant to an advertisement for bids for Project 22-41, Happy Acres Park General Site Improvements, the following bids were received, and tabulated according to law:

 

Date Received

Bidder

Total Bid

March 29, 2022

All Phase Contracting

$814,331.36 (Incomplete Submission)

March 29, 2022

Sunram Construction

$823,803

March 29, 2022

Veit Specialty Contracting

$899,129.55

March 29, 2022

Park Construction

$916,323.90

March 29, 2022

Blackstone Contractors

$916,599.50

March 29, 2022

Urban Companies

$1,097,861.50

 

and

 

WHEREAS, this bid is much higher than the estimate for this portion of the work, thereby putting the estimated project costs for fully delivering the services well beyond previously set budget parameters; and

 

WHEREAS, the City desires to deliver the project within budget parameters and cannot accomplish that goal at present with the received bids.

 

                     NOW, THEREFORE, BE IT RESOLVED, that the Blaine City Council hereby rejects all bids received for the Happy Acres Park General Site Improvements, Project No. 22-41 and direct staff to rebid the project with alternates for consideration.

 

PASSED by the City Council of the City of Blaine this 6th day of July 2022.