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411 <br /> Mr. R. A. Minetor <br /> August 30, 1990 <br /> Page 2 <br /> 1 . The current Mideast crisis and its impact on oil prices has <br /> increased bituminous prices and construction costs compared to <br /> other recently performed projects . In comparing the bids <br /> received for bituminous pathway with other bids received in <br /> the past, prices have increased by approximately thirty to <br /> forty percent ( 30%- 40%) . <br /> 2 . The current construction market may not be in a condition <br /> which is conducive to low bid prices . The late season <br /> construction schedule and the current workload of contractors <br /> in the area may have had some impacts on the bid prices . <br /> Although the low bid price is greater than our Engineer's Estimate, <br /> we do not feel that bid prices have been unreasonably inflated <br /> considering the above-detailed factors . <br /> We recommend award of the County Road I Pathway Project, CP 90-12, <br /> to Barber Construction in the amount of $117, 122 . 00 . Barber <br /> Construction has been the contractor for other projects in which <br /> 41, BRW, Inc . , has been involved, as well as other projects for the <br /> City of Shoreview. We have found them to be an adequate <br /> contractor, and feel that they are capable of performing the work <br /> required by this project. <br /> The project bid proposal form was prepared to easily allow the <br /> separation of City of Shoreview and City of Mounds View-costs . <br /> Based on our understanding of the joint agreement between the two <br /> cities, Shoreview would be responsible for all costs in Bid <br /> Schedules A and C plus one-half the cost of Bid Schedule D, while <br /> Mounds View would be responsible for the costs of Bid Schedule B <br /> plus the remaining one-half of Bid Schedule D. Considering the <br /> Barber Construction bid, the total Shoreview construction cost <br /> would be $84 ,572 . 50, while the Mounds View portion of the <br /> construction cost would be $32,549 . 50 . <br /> Barber Construction proposes to use the following subcontractors to <br /> perform the work: <br /> Barber Construction - Grading & Bituminous Pathway <br /> Advanced Concrete - Concrete work <br /> Jordan & Sons - Seeding and Sod <br /> Permits and approvals for the project are required from the <br /> • following agencies : <br /> o Ramsey County <br /> o Rice Creek Watershed District <br /> o Department of Natural Resources <br />