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AGENDA ITEM 7L STAFF ORIGINATOR: John Powell, City Engineer COUNCIL MEETING DATE: August 27, 2001 TOPIC: Resolution No. 01-126, Receive Bids and Award Construction Contract, 2001 Surface Water Management Project VOTE REQUIRED: Simple Majority BACKGROUND: Sealed bids were received and publicly opened at 10:00 a.m. on August 21, 2001. 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 Forest Lake Contracting $136,491.00 Engineer's Estimate $127,682.50 Only one bid was received for this project. The low bid is approximately 7% above the Engineer's Estimate for this project. A copy of the bid tabulation is attached. We contacted the contractors who received plans but did not submit bids. The reasons given for not submitting bids include; their estimators were on vacation, they were too busy, and the project contained too much ditch cleaning and not enough pipe installation for their crews. If the project is re -bid next year, the City may have additional bidders but the overall cost of construction will also be increased due to inflation. The net result may not be a lower bid. Also, the sites will likely be wetter next Spring than they will be this Fall. The funding for this work is provided by the Surface Water Management Fund. This fund was established in 1992 as a revenue source in order to meet the "administrative, planning, ponding, mitigation, and water quality needs" of the City. It is reimbursed through assessments to new subdivisions and is also collected as property owners connect to City utilities. The completion date for this project is October 31, 2001. OPTIONS: 1. Return to staff for further review. 2. Adopt Resolution Number 01-126, accepting bids and awarding a construction contract to Forest Lake Contracting for the 2001 Surface Water Management project. 3. Not adopt Resolution No. 01-126. RECOMMENDATION: Option No. 2 - Staff recommends adoption of Resolution Number 01-126.