06-11-91 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL JUNE 11, 1991 SECURITY SERVICE ON THE EXTERIOR OF THE BUILDING ON A PERMANENT BASIS, AS WELL AS APPROVING THE 24-HOUR OPERATION FOR THE BOWLING ALLEY The foregoing resolution was duly seconded by Collova. Ayes (5) Scalze, Collova, Hanson, LaValle, Blesener. Nays (o). Resolution declared adopted. DESOTO STR. The City Engineer reported that bids for the DeSoto IMPROVEMENT Street improvement were opened today. Four bids were BIDS received. The apparent low bid was from Knutson Construction in the amount of $213,161.05. However, Knutson has informed the City that they have made an error in their bid submittal. The next apparent low bid was from Volk Sewer in the amount of $224,716.24. The City Attorney recommended in view of the bid error that the City award the bid to the lowest responsible bidder. If Knutson chooses to withdraw their bid due to the error, then the contract would go to Volk Sewer. Mr. Pete Costa asked why the City doesn't just accept the low bid. The City Attorney replied that the theory is that the contractor made a mistake, and the City then gives the contractor the option of withdrawing his bid. Collova asked what happens to the contractor's bid bond money. The City Attorney reported that typically the bid bond is for 5 to 10% of the amount of the bid. The Attorney also reported that to collect on a bid bond could cost more than the amount the City would be trying to collect. The City Administrator pointed out that the final plat for the Costa Estates project has not yet been approved, therefore, the developers will have to give the City right-of-entry to proceed with the improvement of DeSOto Street. Bob DeBace, representing the Costa Family, reported that the final plat is currently being checked by the Ramsey County Recorder and will be submitted to the Planning Commission for a recommendation on Thursday night. It was also pointed out that there are three easements Page 19