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No portions of this project are proposed to be assessed and therefore the required 10- <br /> <br /> day advertisement was completed. The fact that the actual bids were higher than the <br /> <br /> estimate does not invalidate the bid process and the City Council can act on the bids. <br /> <br /> With the low bid cost higher than the original budgeted cost, the project was reviewed to <br /> determine if aspects of the project could be deleted or delayed to provide for cost <br /> savings now and/or in the future. It is likely that oil prices will continue to rise which will <br /> in general increase most construction costs, however Staff does feel that some cost <br /> savings can be realized by utilizing City forces or delaying certain aspects of the project. <br /> Based on discussions with the Parks and Public Works departments the following items <br /> could be removed from the contract: <br /> o The topsoil borrow work could be completed by City forces at a cost saving to the <br /> City. <br /> Supplying and installation of the basketball hoop could be removed from this <br /> contract and be completed by City forces or individual contract. <br /> The installation of the Sport Court coatings and markings could also be deleted <br /> from this contract and the work would be re-bid under separate contract in the <br /> future as part of a larger specific court finishing project. <br /> We would anticipate a cost savings of around $5,000 to $7,000 with the above contract <br /> modifications. We are also discussing deleting or minimizing some of the trail radius <br /> work to lower the overall project cost. If the work can be minimized for a fair price the <br /> City would complete the work at a smaller scale, but if not all radius work will be deleted <br /> from the project. <br /> Based on the information outlined above it is our opinion that the low bid received <br /> represents a fair and competitive price for the project. We would recommend that the <br /> City Council authorize award of the project to FPI Paving Contractors Inc. with the <br /> revisions outlined above for cost savings. If you have any questions concerning this <br /> information, please call me at (763) 780-0450 Ext. 3. <br /> 10062 Flanders Court NE -Blaine, MN 55449 - Ph: (763) 780-0450 Fax (763) 780-0452 <br /> Memo-101310-CC (Award) <br /> <br />