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AGENDA ITEM 6G • STAFF ORIGINATOR: James E. Studenski, City Engineer COUNCIL MEETING DATE: June 14, 2004 TOPIC: Resolution No. 04 -81, Rejecting All Bids and Authorize Re- Bidding, Birch /Hodgson Street Improvements Project • VOTE REQUIRED: 3/5 Vote Required BACKGROUND: Sealed bids were received and publicly opened at 10:00 a.m. on June 3, 2004. The results of the bid opening are presented below. City Council action is required to award a construction contract to the lowest responsible bidder. Contractor Amount of Bid Arnt Construction Co., Inc. $ 677,698.79 Forest Lake Contracting, Inc. $ 688,682.92 Magnum Company LLC $ 747,500.23 Engineer's Estimate $ 560,078.10 The low bid is approximately 21 % over the Engineer's Estimate for this project. A copy of the complete bid tabulation is attached. The overrun in project costs appears to be contributed to the issues of maintaining traffic during the project work while meeting Anoka County design requirements, the traffic control signal system, and the trail system. According to the City Charter, if bids exceed the estimated cost by the engineer by more than 10 %, the City may not award the contract but may rebid the project one time only. It is staffs recommendation to review the design requirements with Anoka County including their funding of the project and make the appropriate adjustments. The project would then be rebid. Depending on the review with Anoka County, an estimated substantial completion date for this project would be October 30, 2004, with a final completion date of November 15, 2004. OPTIONS: 1. Return to staff for further review. 2. Adopt Resolution Number 04 -81, Rejecting All Bids for the Birch /Hodgson Street Improvements project. 3. Not adopt Resolution No. 04 -81. RECOMMENDATION: • Option No. 2 - Staff recommends adoption of Resolution Number 04 -81.