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AGENDA ITEM 7A <br />STAFF ORIGINATOR: David Ahrens, Public Works Director /City Engineer <br />DATE: July 21, 1998 <br />TOPIC: Resolution No 98 -115, Accept Bids and Award Construction <br />Contract -1998 Wear Course and Trail Paving Project <br />INTRODUCTION: <br />Sealed bids were received and opened on Friday July 21, 1998 for 1998 Wear Course <br />and Trail Paving project. City Council action is required to award a construction contract <br />to the lowest responsible bidder. <br />BACKGROUND: <br />The City Council ordered the 1998 Wear Course and Trail Paving project at the June 22, <br />1998 Council Meeting, On July 21, 1998, two sealed bids were received and opened with <br />the following results. <br />Company Bid Amount <br />North Valley, Inc. <br />Midwest Asphalt Corp. <br />Engineer's Estimate <br />$ 235,414.50 <br />$ 349,783.10 <br />$ 329,346.50 <br />The number of bids received represents the late bid timing for the 1998 construction <br />season. The bid by North Valley, Inca is approximately 291, below the engineer's <br />estimate. The attached letter from the City's consulting engineer, OSM, Inc., <br />recommends the award of the construction contract to North Valley, Inc. <br />FINANCING SUMMARY: <br />The construction costs for this project will be paid for from assessments to developers, <br />the park trail fund and street department. The projected cost split for the project is as <br />follows: <br />Wear Course Paving $155,210.10 <br />Trail Paving $ 54,367.15 <br />Second Avenue $ 25,795.75 <br />Total $235,414.00 <br />