05-14-2018 Council Meeting Packet

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CITY COUNCIL AGENDA ITEM 6E STAFF ORIGINATOR: Diane Hankee PE, City Engineer MEETING DATE: May 14, 2018 TOPIC: Consider Resolution No. 18-52, Rejecting Bids, 2018 LaMotte Area Street and Utility Improvement Project VOTE REQUIRED: 3/5 INTRODUCTION Staff is requesting council authorization to reject bids for the 2018 LaMotte Area Street and Utility Improvement Project. BACKGROUND Bids were received for the above-referenced project on Thursday, April 25, 2018. A total of two bids were received. The bids were checked for mathematical accuracy and tabulated. CONTRACTOR TOTAL BASE BID Park Construction Company $1,236,597.82 Arnt Construction Company, Inc. $1,238,274.84 The low bid was submitted by Park Construction Company in the amount of $1,236,597.82. The estimated construction cost for the project was $966,000, and increase of $270,600. The contractors identified the following reasons driving the costs higher: 1. Due to the high ground water and poor soil conditions the roadway work was more expensive. It will be difficult for trucks to access the site, only one way in, and challenging construction staging. 2. The site conditions lead to additional costs in drying out the roadway subgrade to meet specifications. 3. Additional time involved with utility installations. Typical dewatering may not work requiring double crew time and bedding materials. 4. The access for residents requires considerable time and materials for maintaining the roadway. 5. The utility contracting trade is experiencing a shortage in work force. Although the contractor has their own utility crew, they had to sub consult the utility work on this project. Due to the higher cost, staff will be recommending the Council re-bid the project addressing the issues where feasible. We will communicate to the residents the updated project schedule.