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HomeMy WebLinkAbout2007-068 Council Resolution• Council Member °' DonnQlintroduced the following resolution and moved its adoption: CITY OF LINO LAKES RESOLUTION NO. 07-68 RESOLUTION ACCEPTING BIDS AND AWARDING A CONSTRUCTION CONTRACT LAKE DRIVE /I35W INTERCHANGE STATE PROJECT NO. S.P. 0280 -55 (T.H. 35W =394) COUNTY PROJECT NO. S.A.P. 02- 623 -13 CITY PROJECT NO. S.A.P. 210 - 020 -04 WHEREAS, pursuant to an advertisement for bids for the construction of the Lake Drive /I35W Interchange project, bids were received April 26, 2007, opened and tabulated according to law, and the following bids were received complying with the advertisement: Contractor Total Bid Lunda Construction Company $7,531,701.71 Redstone Construction Company. $7,543,585.94 C.S. McCrossan, Inc. $8,256,400.33 Edward Kraemer & Sons. $8,404,696.10 Robert Schroeder Construction. $8,450,405.84 AND WHEREAS, it appears that Lunda Construction Company of Black River Falls, Wisconsin is the lowest responsible bidder; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LINO LAKES, MINNESOTA: 1. The Mayor and Clerk are hereby authorized and directed to enter into a contract with Lunda Construction Co. of Black River Falls, Wisconsin in the name of the City of Lino Lakes for the construction of the Lake Drive /I35W Interchange Improvements in the amount of $7,531,701.71, according to the plans and specifications approved by the City Council and on file in the office of the City Clerk. 2. The City Clerk is hereby authorized and directed to return forthwith to all bidders the deposits made with their bids, except that the deposits of the successful bidder and the next lowest bidder shall be retained until a contract has been signed. Adopted by the Lino Lakes City Council this 14th day of May, 2007. • • The motion for the adoption of the foregoing resolution was duly seconded by Council Member Stoltz and upon vote being taken thereon, the following voted in favor thereof: O'Donnell, Stoltz, Reinert, Carlson, Bergeson The following voted against same: none Whereupon said resolution was declared duly passed and adopted. Lip e • • STAFF ORIGINATOR: CITY COUNCIL MEETING DATE: TOPIC: AGENDA ITEM 6Bi Michael Grochala, May 14, 2007 Consideration of Resolution No. 07 -68, Accepting Bids and Awarding Contract, Lake Drive /35W Improvement Project VOTE REQUIRED: Simple Majority BACKGROUND: Sealed bids were received and publicly opened at 10:00 a.m. on April 26, 2007 for the proposed I -35W /Lake Drive Improvement Project. A total of five (5) bids were received. 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 Total Bid 1 Lunda Construction Company $7,531,701.71 2 Redstone Construction Company. $7,543,585.94 3 C.S. McCrossan, Inc. $8,256,400.33 4 Edward Kraemer & Sons. $8,404,696.10 5 Robert Schroeder Construction. $8,450,405.84 The low bid received was submitted by Lunda Construction Co. in the amount of $7,531,701.71. This represents an increase of $715,955.50 (10.5 %) over the engineer's estimate of $6,815,746.23. The Minnesota Department of Transportation (Mn /DOT) has reviewed the bid results, found the variance acceptable and has authorized award of the project to Lunda Construction. The bid tabulation identified higher than expected unit prices for bituminous, concrete and steel materials. Other projects bid recently by Mn /DOT and Anoka County have also seen significant price increases over estimates. Funding The original project budget of $10,400,000 included a 10% contingency. However, based on the bids received and factoring in a 5% construction contingency and approximately $160,000 for median landscaping (not included in construction bid), the estimated project now stands at $11,131,804. Based on funding received from • • Mn /DOT and Anoka County the City's share of the project is $6,086,656, including approximately $560,000 in contingency. This represents an approximate $600,000 increase over previous estimates. Given the increase in the project cost, staff has been working with Springsted Inc. and Kennedy and Graven to evaluate funding alternatives. The attached financing memo prepared by the City's Finance Director, Mr. Al Rolek, provides an overview and analysis of the project funding. Based on this analysis staff is proposing to move forward with the project. RECOMMENDATION: Staff recommends adoption of Resolution No. 07 -68 awarding the Lake Drive /35W Interchange Improvement Project to Lunda Construction of Black River Falls, Wisconsin. ATTACHMENTS 1. Resolution No. 07 -68 2. Financing Memo — Al Rolek 3. Mn /DOT Letter of Concurrence 4. Bid Tabulation