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515 Little Canada Road, Little Canada, MN 55117-1600 <br />(651) 766 -4029 / FAX: (651) 766 -4048 <br />www.ci.little- canada.mn.us <br />MEMORANDUM <br />TO: Mayor Fahey & Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: June 18,2004 <br />RE: Trail Connection Bids <br />MAYOR <br />Michael I. Fahey <br />COUNCIL <br />Jim LaValle <br />Matt Anderson <br />Rick Montour <br />13111 Blesener <br />ADMINISTRATOR <br />Joel R. Hanson <br />Bids were received this past week for the trail connection work. Only two bidders submitted prices for <br />this work. Of those, Frattalone Paving was the low bidder at a price of $313,342.45 plus the alternate for <br />the railroad crossing of and additional $36,434.60. Bill Sanders, our park consultant stated his estimate <br />for the base work was about $240,000. <br />Some factors that may have negatively impacted the bid results are as follows: <br />✓ 1- higher oil prices leading to higher asphalt and equipment operation expenses. <br />✓ Uncertainty about construction the railroad crossing. <br />✓ The past month being so wet, thereby putting contractors into "catch -up" mode. <br />✓ Being late into the market. (I believe these jobs are best bid in March when contractors are <br />looking for work.) <br />The unit prices have also been reviewed with the City Engineer. Based on my conversation with him, 1 <br />feel the prices are beyond typical market rates. In talking with our Park Consultant, he feels the prices are <br />slightly high and he feels we should proceed with the work. <br />From a financial standpoint, I feel comfortable in recommending we reject these bids and re -bid next <br />spring. It may also make sense in that we still have not secured all of the necessary easements and <br />permits needed to construct the job. The downside to that approach is the work will wait another year <br />before being completed. While I want to get this work completed, I do not believe we should pay a <br />premium to do so. <br />cc: Bill Sanders <br />Jim Morelan <br />Greg Schroeder <br />