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~l~-RIN6 ~ ~ASSO(I~T~S TRU> NORTH Mem® TO: Honorable Mayor and City Council Members FROM: Lee Elfering, City Engineer DATE: March 13, 2010 RE: 2010 Trail & Park Improvements Project Bids were opened for the above referenced project at 11:00 a.m. on Wednesday, March 13, 2010 in accordance with the Advertisement for Bids. The project consists of trail repairs and improvements on trails in Spooner Park, Pioneer Park, Thunderbay Park, on the Valento Lane Trail, and the Waterworks trail south of South Owasso Blvd. In addition, there will be drainage improvements completed in Thunderbay Park along with the construction of a half basketball court. Four (4) bids were received from the following companies and are listed below from low base bid to high base bid: Corporation Base Bid Alternate #1 FPI Paving Contractors, Inc. $156,593.50 $2,365.00 Sunram Construction $202,494.95 $2,000.00 T.A. Schifsky & Sons, Inc. $203,305.00 $ 0.00 Buck Blacktop, Inc. $206,441.00 $1,820.00 The engineer's estimate for the project was approximately $98,700.00 and all bids received were significantly higher than that estimate. The fact that the low bid is over the estimate warranted a closer examination of the bids and estimate. Due to the lack of recent trail work within the City, the engineer's estimate was based on unit pricing received for like items on the most recent street projects (i.e. common excavation, aggregate base, bituminous wear, topsoil borrow, etc.) with a slight mark-up. Due to the smaller width of the trail work and the more difficult access to the areas where the work is completed the pricing of these items and nearly all items was even higher than originally estimated. The three high bids are between $45,000 to $50,000 higher than the low and the difference is not in a single item, but every schedule is consistently higher. This indicates that the low bid is very competitive and represents a fair price for the work. All bids were reviewed for errors and/or omissions. In addition, the low bidder, FPI Paving Contractors, Inc. has completed past projects within the City and they are a responsive and responsible bidder. 10062 Flanders Court NE -Blaine, MN 55449 - Ph: (763) 780-0450 Fax (763) 780-0452 Memo-t 01310-CC (Award)