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• KRAUS-ANDERSON®CONSTRUCTION COMPANY <br /> CONTRACTORS & CONSTRUCTION MANAGERS <br /> October 8, 2003 <br /> Michael Momson <br /> City Manager <br /> City of St. Anthony <br /> 3301 Silver Lake Road <br /> St. Anthony,MN 55418 <br /> Re: St. Anthony Fire Station/St. Anthony Public Works <br /> St. Anthony, Minnesota <br /> Dear Mr. Mornson: <br /> As Construction Manager for the City of St. Anthony, Kraus-Anderson®Construction <br /> Company, Midwest Division would like to make its recommendations to the City for the <br /> consideration of bids received recently for the Fire Station and Public Works projects. As <br /> • you know, the City has previously awarded bids for Site Utilities, Earthwork, Footings, <br /> Foundations and long-lead structural items for both projects, and the sitework at both <br /> locations is well underway. <br /> Recently we received bids for BP-2, which is for the building completion, mechanical and <br /> electrical construction for both projects. The Fire Station bids were received on <br /> September 23,2003 and the Public Works bids were received on September 25, 2003. <br /> The total recommended award amount for the Public Works BP-2 Bid Division Nos. I <br /> through 23, including Alternate Nos. 7,8,9,10 is $1,389,774.00. In addition, we are <br /> proposing the acceptance of other value engineering and cost reduction items as <br /> developed by the project team. <br /> It should be noted that accepting deduct Alternate No. 10 will result in the deletion of <br /> about 4,300 sq,ft. of building that includes Public Works Shop and Utility Storage Areas, <br /> as well as Police Squad Car and Vehicle Storage (see attached drawing). However, the <br /> value of this deduct is $157,000.00 and this amount is needed to cover- the costs of <br /> dealing with the unsuitable and contaminated soils encountered in the excavation portion <br /> of BP-1. Awarding these bids and acceptance of the value engineering/cost reduction <br /> items will result in a total cost amount, within the approved construction budget amount <br /> of$2,400,000.00. <br /> Midwest Division fD <br /> 8625 Renclova Slreel, Circle Pines, MN 55014Phone: (763) 786-7711 Fax: (763) 786-?650Equal Opportunity Employer <br />