04-14-2021 Council Minutes - Laserfiche WebLink

Home Browse Search

MINUTES CITY COUNCIL APRIL 14, 2021 The Public Works Director explained that the low bid amount significantly reduces the percentage -based engineering fee that was included in the contract with Bolton & Menk. The contractual numbers are 18% for local roads and 20% for Municipal State Aid (MSA) roads. The Public Works Director explained that the reduction in engineering fees does not allow for the level of service typically provided on our reconstruction projects, and Bolton & Menk already has $70,000 into designing the project. He stated that Bolton & Menk has agreed to lower the inspector's hourly rate to reduce the overall engineering fee to below 25% for this year. Keis asked how we can make sure that the engineering fees are not that high again in the future. Kasma explained that the engineering fees went over the contracted percentage of 18-20% because the bid prices were much lower than expected, but every project has the same standard engineering costs no matter if the project costs are more or less. He stated that in most years the 18-20 percent engineering fee works out perfectly. He noted that the contractors bid on a project blindly and do not know what they will be dealing with and will bid low sometimes and then expect to make up costs in change orders along the way. He cannot guarantee that this will not happen again in the future, but pointed out that it works out the other way also, where if the project bid costs are very high, the engineering fees will not be run up. The Public Works Director stated that street improvements will be funded through the City's Infrastructure Capital Improvement Fund and special assessments, and utility improvements will be funded through the City's Infrastructure Capital Improvement Fund. Fischer noted that he also was initially concerned but as he looked at the breakdown of numbers, he realized that the engineering costs are almost fixed no matter what the project cost. He stated that it was the length of the project that drives the final inspector costs, and the inspector is on site making sure the city is getting exactly what we are supposed to get. Fischer introduced the following resolution and moved its adoption: RESOL UTION NO. 2021-4-46 — A WARD THE BID FOR THE 2021 STREET IMPROVEMENTS TO T.A. SCHIFSKY & SONS, INC. IN THE AMOUNT OF $593, 729.91 AND APPR O VE THE ANTICIPA TED INCREASE IN ENGINEERING FEES ABOVE THE CONTRACTED PERCENTAGE WITH NOT -TO EXCEED PERCENTAGE OF 25% The foregoing resolution was duly seconded by Torkelson. Roll Call Vote: Keis/Fischer/Torkelson/McGraw/Miller Ayes (5). Nays (0). Resolution declared adopted. PAVEMENT MANAGEMENT PLAN The Public Works Director explained that there are approximately 32 centerline miles of improved roadway within the City for a net asset total of over $50 million dollars. He stated that 5