03-10-09 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL MARCH 10, 2009 FLEUR ROYALS - 6:00 P.M. CANABURY CONDOMINIUMS - 7:00 P.M. The foregoing resolution was duly seconded by McGraw. Ayes (4). Nays (0). Resolution declared adopted. 2009 The City Administrator reported that bids have been received for the IMPROVEMENT 2009 Improvement Projects. He noted that the City has been aggressive BIDS in bidding projects for 2009 given low oil prices and a competitive bidding climate. The Administrator indicated that in bidding the work, reconstruction work was bid separately from mill and overlay work. Eight bids were received for the reconstruction projects, with the low bid submitted by T. A. Schifsky & Sons in the amount of $1,535,000. Eleven bids were received for the mill and overlay projects, with the low bid submitted by T. A. Schifsky & Sons in the amount of $390,995. The Administrator reported that documenting the specific savings due to the competitive bidding climate is a challenge. The Administrator noted that from the 1990's through 2006, construction costs were increasing by over 6% per year. The City Engineer based his estimates on current market conditions. The Engineer's initial project estimate was $3 million for both reconstruction and mill and overlay work. The revised mill and overlay estimate was $600,000, with the Adminisri•ator noting the low bid is at $390,000. This is a 42% reduction in costs, which property owners will see given that mill and overlay project costs are assessed at 50% of project costs. The Adminisriator then reviewed specific details of the reconstruction projects which impacted the initial Engineer's estimate, specifically the need to move a storm sewer along County Road D as part of the Thunder Bay project which added costs to this project. The initial City Engineer's estimate as $1.7 million for the reconstruction projects, but was revised to $1.9 million based on project adjustments that were needed due to soil conditions found after soil borings were done as well as the need for the storm sewer relocation. The low bid for the reconstruction projects is $1,535,000. The Administrator noted that the Council had indicated that it would review bids with property owners in three of the project areas. Therefore, it was staff s recommendation that action on the bids be tabled until the March 25'x' Council meeting. The meeting with property owners is scheduled for Monday, March 16°i. 3