07/10/2000 Council Packet - Laserfiche WebLink

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AGENDA ITEM 7F • STAFF ORIGINATOR: John Powell, City Engineer COUNCIL MEETING DATE: July 10, 2000 TOPIC: Resolution No. 00 -68, Consideration of Bids, Apollo Drive Phase 4 Improvements VOTE REQUIRED: Simple Majority BACKGROUND: Bids for the referenced project were opened on May 19, 2000; and were received by the City Council at the May 22, 2000, meeting. The City has 60 days after the bid opening to award the contract otherwise the contractors may withdraw their bids without penalty. 60 days from the bid opening date ends on July 18, 2000. The latest regular City Council meeting for award of the contract, per the specifications, is July 10, 2000. The acquisition of the property for this project was initiated on December 20, 1999, when the City Attorney was authorized to commence eminent domain proceedings. As the City Attorney has stated in recent meetings with the City Council and staff, the right - of -way has not been acquired through preparation of an appraisal and direct negotiation with the property owner. The City can ask the contractor submitting the lowest bid if they will still honor their bid if • awarded at a later date if the property acquisition will be completed in the near future. However, staff has not been informed that this is the case. Also, the schedule included in the Feasibility Report estimated the construction of the improvements would be complete by June 26, 2000. Even if the City Council awarded the contract at the next meeting, we anticipate the construction would not be completed until September. Without control of the property, the City cannot authorize a contractor to proceed with construction and should not award the construction contract. If the City does not award a contract, we will inform the three contractors and return their bid bonds. If the City does not award a contract for this project, the developer may still proceed with the installation of the improvements with the execution of a development agreement acceptable to the City. OPTIONS: 1. Return to staff for further review. 2. Adopt Resolution Number 00 -68, rejecting bids for the Apollo Drive Phase 4 project. 3. Delay award of the contract to a future City Council meeting and request an award extension from the low bidder. • RECOMMENDATION: Option No. 2 — City Staff recommends the bids be rejected for the Apollo Drive Phase 4 project.