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Both staff and BMI checked with other municipalities and consultants that have worked with <br />Douglas-Kerr Underground, LLC and they received satisfactory recommendations on their past <br />performance. BMI has provided a letter recommending that a contract in the amount of <br />$4,080,913.79 be awarded to Douglas-Kerr Underground, LLC and it is attached to this report. <br />This amount is the estimated construction cost but actual construction costs may differ due to <br />quantity variation in the 165 individual unit price bid items. Additionally, unknown conditions <br />may arise that don’t fit into the bid items. For this reason, a construction contingency of 5% or <br />$204,000 is recommended to deal with these unknowns in a timely manner and not delay <br />construction. <br /> <br />BMI has provided a fee estimate to provide engineering services for the construction phase of <br />the project, which includes administration, engineering, inspection, surveying and closeout of <br />the project. Compensation will be actual hours worked plus reimbursable expenses for a <br />maximum estimated fee of $147,200. Should the project extend into 2017 it is likely this fee will <br />increase to account for additional hours to be worked. Staff will request an additional estimate <br />and present that to the Council for approval in the event that is required. <br /> <br />Public Works is in the process of seeking fee proposals to provide geotechnical engineering and <br />material testing during construction. This testing will be required by MnDOT’s State Aid office <br />for the MSA streets on the project. The testing will include soil, concrete and bituminous testing <br />and is a normal requirement for street and utility construction to insure quality control. These <br />proposals will be presented at a future Council meeting but are estimated at approximately <br />$40,000. <br /> <br />Recommendation: <br />Staff recommends that the City Council adopt the attached resolution awarding the construction <br />contract to Douglas-Kerr Underground, LLC of Mora, MN in the amount of $4,080,913.79 for the <br />2016 Street and Utility Improvement Project – Area I. In addition, Bolton & Menk, Inc should be <br />authorized to provide required professional engineering services associated with the <br />construction phase of the project. If adopted, a neighborhood meeting will be held on April 27 <br />and construction is anticipated to begin in mid-May. <br /> <br />Respectfully Submitted, <br /> <br /> <br /> <br />Brian Erickson, P.E. <br />Director of Public Works/City Engineer <br />