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City Council Regular Meeting Minutes April 27, 2004 •04 Page 4 1 2 City Manager Morrison noted letters were sent to the affected property owners explaining the 3 options available to them. He indicated the letters would probably be sent sometime in the fall. 4 5 Motion carried unanimously. 6 7 C. Resolution 04-038, re: Award construction bid. 8 Mr. Hubmer noted this resolution awarded a contract for Phase 1 of the 39`h Avenue 9 reconstruction, which included storm sewer, water main, sanitary sewer and appurtenant work. 10 He stated no street reconstruction would be completed with this phase of the project, as 11 requirements must be met before the Federal funds could be received. He added that was why 12 the project was in two phases, noting it was anticipated Phase 2 would begin sometime in July. 13 14 Mr. Hubmer indicated the low bidder was Veit and Company, Inc., Rogers, Minnesota, in the 15 amount of$399,999. 16 17 Motion by Councilmember Horst, seconded by Councilmember Faust, to adopt Resolution 04- 18 038 awarding a bid for Phase 1 (39`h Avenue street and utility improvements) to Veit and 19 Company, Inc., Rogers, Minnesota, in the amount of$399,999. 20 21 Discussion: 22 23 Councilmember Horst asked if it was true that street paving would not be done in the first phase. 24 Mr. Hubmer responded that was correct, as the pavement would be done as part of Phase 2. He 25 indicated Phase 1 consisted of putting in utilities from Silver Lake Road to the existing 39`h 26 Avenue and all of the road work, street work and utilities on the west side of the project would 27 be completed in Phase 2. He explained additional reasons for the phasing were as follows: 28 1. Some of the utilities needed to be installed before the foundation area of Apache Mall 29 was filled, which would save money because that area would not need to be reopened at a 30 later time. 31 2. Utilities were needed so construction could begin on the adjacent stores. 32 33 Councilmember Horst asked regarding the street that went to the liquor store. Mr. Hubmer 34 responded that street segment would be finished before the liquor store was completed, which 35 would also be part of Phase 2. 36 37 Councilmember Stille asked if the phasing of the project was because of funding. Mr. Hubmer 38 responded the project needed to be split into two phases, as it was necessary to complete the 39 approval process to receive the $750,000 Federal grant. 40 41 Councilmember Stille asked regarding the large differences between the bids. Mr. Hubmer 42 responded the project estimate was $547,000; however, he thought Veit and Company's low bid 43 indicated they wanted to keep control of the site, as they were doing the demolition of Apache 44 Mall. 45 46 Motion carried unanimously.