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Item No: 7D Meeting Date: April 11, 2011 Type of Business: Council Business Administrator Review: ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Nick DeBar, Public Works Director Item Title/Subject: Resolution 7771, Awarding a Construction Contract with Northwest Asphalt, Inc. and Authorizing Bonestroo to Provide Engineering Services for the Construction Phase of the 2011 Street and Utility Improvement Project – Area D Background: Detailed background information for the Street and Utility Program and the Area D project is included as a reference at the end of this report. Much of this information was presented to the Council in previous Staff Reports associated with prior approvals for the Area D project. Discussion: The City Council approved plans/specifications and authorized advertisement for bids for Area D of the Street and Utility Improvement Program on February 28, 2011 (Res. 7747). Eight bids were received and publicly read aloud at 2:00 pm on March 31, 2011 in the Council Chambers. The bids have been tabulated, checked for mathematical errors, and corrected in accordance with the contract requirements by the City’s consulting engineer, Bonestroo. Bids for the base schedule ranged from $1,969,374.79 to $2,219,279.90, and from $22,100 to $35,000 for the add alternate schedule for construction surveying work. The low base bid amount was received by Northwest Asphalt, Inc. of Shakopee, Minnesota – the same general contractor that performed construction for the Area B/C project. The bidding environment continues to be excellent for this type of work, and the 1.5% range between the three lowest base bids (12.7% overall) confirms this. The low bid is nearly $119,000 below that of the engineer’s estimate of $2,088,000. Attached to this report is a letter from Bonestroo that summarizes the bids received. Given the satisfactory performance on last year’s project, Public Works staff and Bonestroo both recommend awarding the construction contract to Northwest Asphalt in the total bid amount of $1,969,374.79. The add alternate bid of $35,000 for construction surveying is included with the construction contract and will be performed by Bonestroo. Bonestroo provided the City with a quote of $34,750 prior to the bid opening. Construction is anticipated to begin in mid to late May 2011 and be complete by the end of September 2011. Bonestroo has provided a letter proposal (see attached) to provide engineering services for the construction phase of the project, which includes administration, inspection, surveying, and closeout for the Area D project. The estimated fee associated with these services is $250,000. Recommendation: Staff recommends that the City Council consider adopting Resolution 7771 that will award the construction contract to Northwest Asphalt, Inc. of Shakopee, Minnesota for the 2011