06/14/2004 Council Minutes - Laserfiche WebLink

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COUNCIL MINUTES JUNE 14, 2004 APPROVED 525 •526 City Attorney Hawkins indicated he has reviewed the written document and believes it is adequate. 527 528 Mayor Bergeson called for a short recess at 9:30 p.m. The meeting was resumed at 9:40 p.m. 529 530 F. Consideration of Resolution No. 04-80, Accepting Plans and Authorizing Advertisement 531 for Bids, Marshan Lane Utility Improvement Project, Jim Studenski 532 533 City Engineer Studenski reviewed the Staff report, noting the date to open bids has moved from July 534 8, 2004 to July 7, 2004 so an update can be provided at the Wednesday work session. He advised the 535 area does have some septic system issues so it is Staff's recommendation to go through to the east end 536 of the roadway. He stated the impact will be minimal as the road will be replaced with a rural section 537 of road as it is currently. He indicated Staff has met with the residents, and noted funding will be 538 from assessment to the benefiting properties, and trunk funds from the remaining properties. 539 540 Councilmember Dahl moved to adopt Resolution No. 04-80 approving Plans and Specifications and 541 authorizing Advertisement for Bids for the Marshan Lane Utility Improvement Project. 542 Councilmember Stoltz seconded the motion. 543 544 Motion carried unanimously. 545 546 G. Consideration of Resolution No. 04-81, Rejecting All Bids, Birch/Hodgson Street 547 Improvement Project, Jim Studenski 1.548 549 City Engineer Studenski reviewed the Staff report, indicating the bids were opened on June 3, 2004 550 and the lowest bid was 21% over the Engineer's Estimate. He advised the City Charter dictates that if 551 bids exceed the estimated cost by the engineer of more than 10%, the City may not award the 552 contract, but may re -bid the project one time. 553 554 Councilmember Carlson questioned why they were going back to Anoka County when the County 555 already approved the project, and asked why there is not enough money to cover it when they have 556 obtained $779,000 through various sources. 557 558 Community Development Director Grochala stated the bid amount of $677,698 is not the total project 559 cost, and engineering costs still need to be added. He indicated the total project cost was supposed to 560 be $700,000, so they have taken over a $100,000 hit to the costs. He stated those points are mute, 561 however, because the bids were more than 10% over the estimate so they have to reject all bids. He 562 indicated there are still financing options but before they come back for new bids they want to make 563 sure all options to reduce costs have been explored with Anoka County. 564 565 Councilmember Carlson expressed concern that the issues that created a low Engineer's estimate be 566 rectified since they will not be able to re -bid a second time. Community Development Director 567 Grochala indicated there are a lot of unique situations to this project, and traffic control came into 568 play, but Staff will make sure the Engineer's estimate comes in within the 10% while still getting the 569 lowest bid possible. 570 1.571 City Engineer Studenski advised the original feasibility report was for a temporary signal, and Anoka 572 County wanted to go with a permanent signal, so to compensate they are giving us some materials. 12