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Item No: 7D Meeting Date: March 22, 2010 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 7595 Awarding a Construction Contract for the 2010 Street and Utility Improvement Project - Area B/C Background: Detailed background information for the Street and Utility Program and the Area B/C project is included as a reference at the end of this report. Much of this information was presented to the Council on previous Staff Reports associated with prior approvals for the Area B/C project. Discussion: The City Council approved plans/specifications and authorized advertisement for bids for a combined Area B/C of the Street and Utility Improvement Program on February 8, 2010 (Res. 7575). Thirteen bids were received and publicly read aloud at 2:00 pm on March 11, 2010 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 ranged from $2,961,311.05 to $3,797,843.50 and the engineer’s estimate was $3,400,000. The low bid amount was received by Northwest Asphalt, Inc. of Shakopee, Minnesota. The general contractor that performed construction on Area A was the second low bid at $3,003,157.83. The bidding environment continues to be excellent for this type of work. The low bid is over $400,000 below that of the engineer’s estimate. Attached to this report is a letter from Bonestroo that summarizes the bids received. Bonestroo, as well as Public Works Staff, have previous working relations with Northwest Asphalt, and both recommend awarding the construction contract to Northwest Asphalt in the total bid amount of $2,961,311.05. Construction is anticipated to begin in late April or early May 2010. City Staff are in negotiations with Bonestroo to obtain a fee estimate for construction services required to administer, inspect, survey, and closeout the Area B/C project. City Staff will provide the Council an update in the near future on the results of these negotiations. Recommendation: Staff recommends that the City Council consider adopting Resolution 7595 that will award the construction contract to Northwest Asphalt, Inc. of Shakopee, Minnesota for the 2010 Street and Utility Improvement Project - Area B/C. By adopting this resolution, construction for the project will begin in spring 2010. Respectfully submitted, Nick DeBar Public Works Director Attachments: Bonestroo Letter to City of Mounds View (dated March 15, 2010) with bid summary Resolution 7595