06-26-2002 Council Agenda - Laserfiche WebLink

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June 21, 2002 File: 815920J Honorable Mayor and City Council City of Little Canada 515 Little Canada Road East Little Canada, MN 55117 -1633 RE: 2002 STREET & UTILITY IMPROVEMENTS PROJECT Dear Mayor and Council Members: As you are aware only one bid was received at the June 5, 2002 bid opening for the above referenced project. The bid was submitted by Palda & Sons Inc. and was significantly over the engineer's estimate. A summary of the bid comparison is attached. As directed at the June 12, 2002 council meeting, further discussions with the Contractor and a review of the engineer's estimate has been completed. We met with the Contractor on Thursday, June 20, 2002 to discuss the possibility of awarding only a portion of the original work. The Contractor indicated that he would only be willing to do a portion of the contract if it included all of the Market Place Drive improvements. He did indicate that he would be willing to make the following concessions if Market Place Drive (Schedule 1.0) was awarded: 1. The Market Place "Mobilization" unit price could be reduced by $10,000 if Sextant Avenue was deleted from the award, and further reduced by $10,010 if the completion date was pushed back to November 1, 2002. 2. The Market Place "Traffic Control" unit price could be reduced $3,000. 3. A credit of $2.50 per cubic yard would be given to the City for any sand that was excavated during the pond construction. A possible savings of approximately $25,000. Even taking into account the deductions listed above, we do not feel that the bid received represents a competitive price for the improvements. However, as indicated at the last council meeting, there is a need to complete a portion of the work in the original contract. Specifically the realignment of the sanitary sewer around Garden Terrace Commons, the manhole replacement at Edgerton Street and Labore Road, and possibly the Rondeau Park improvements. C: \windows \TEMP \Ltr 06 -21 -02 LC- CC,doc