04/14/1997 Council Minutes - Laserfiche WebLink

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• • COUNCIL MINUTES APRIL 14, 1997 Mr. Ahrens stated the Council has two options regarding this matter. The Council can deny the request by Bonine Excavating to rescind the award of contract and require them to enter into the contract. Bonine Excavating will likely refuse resulting in substantial time delays as the City and Bonine Excavating resolve this issue. The second option is to honor the request to rescind the award of contract and take the bid bond or cash equivalent. This option allows the City to award the contract to the second low bidder and keep the project on schedule. Mr. Ahrens stated Staff feels the bid bond should not be returned since the City's consultant questioned their bid immediately after the bid opening and Council has awarded the contract to Bonine Excavating. Mr. Ahrens said staff feels to require Bonine Excavating to honor the award of contract is not in the best interest of the City as substantial delays to the project will result, compromising the City's schedule to extend sewer and water to the "Village". Mayor Landers asked how the second -place bid compares to the City Engineer's estimated bid. Mr. Ahrens stated the estimate was approximately $296,000 and the second -place bid came in a $298,400, so it was approximately 1% higher. Mayor Landers inquired into the background and history of reliability for the second -place bid. Mr. Ahrens replied the company is S. R. Weidema, Inc. and last year they completed the Fourth Avenue Trunk Utility Project and also Behms Century Farms. He believes they have done other work in the City and they are a capable contractor. They are also right on-site as they are working on the Centennial Middle Project. Council Member Neal asked if the bid bond will be kept. Mr. Ahrens stated this is what is being suggested. Council Member Neal inquired into the amount of the bond. Mr. Ahrens stated approximately $13,000. Council Member Neal stated this money should be directed towards the road reconstruction project. Council Member Kuether moved to adopt Resolution No. 97 - 43. Council Member Lyden seconded the motion. Motion carried unanimously. Resolution No. 97 - 43 can be found at the end of these minutes. Consideration of Resolution No. 97 - 44, Award Construction Contract, I-35W/County Road #23 (Lake Drive), Interchange Commercial Development Area Trunk Utilities - Mr. Ahrens stated that with the adoption of Resolution No. 97 - 43, rescinding the award of contract to Bonine Excavating, Inc., the second lower bidder would need to be awarded the bid. Mr. Ahrens stated the City's Consulting Engineer, Mr. Tim Murphy, OSM, Inc., recommends the contract be awarded to S.R. Weidema, Inc., at the revised construction contract amount of $298,429.34. Mr. Ahrens explained the proposed project schedule and said this would delay the project approximately one (1) week. PAGE 9