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WSb <br />August 15, 2019 <br />Honorable Mayor and City Council <br />City of Hugo <br />14669 Fitzgerald Avenue North <br />Hugo, MN 55038 <br />Re: East Cedar Street & 241h Avenue/Elmcrest Avenue North Improvement Project <br />City of Lino Lakes and City of Hugom MN <br />WSB Project No. R-013907-000 <br />Dear Mayor and Council Members: <br />In March of 2019, the City of Hugo and the City of Lino Lakes entered into a Joint Powers Agreement to pave <br />portions of Cedar and Elmcrest as part of the 24th Avenue/Elmcrest Avenue and East Cedar Street Roadway <br />Improvement Project. Plans were approved by both cities and the project was put out for bid. On August 15, <br />2019, bids were opened and reviewed. Four bids were received and checked for mathematical accuracy. <br />Please find the attached bid summary indicating that the lowest bid as submitted by T.A. Shifsky and Sons <br />Inc. in the amount of $777,551.60. The amount for the 24th Avenue/Elmcrest Avenue North Surface <br />0 <br />improvements was $211,959.80. The Engineer's Estimate was $598,303 and $161,258 respectively. <br />U <br />0 Indications in the construction industry suggest contractors are extremely busy at this time, and prices are <br />W volatile, which is likely why the prices to complete this work in 2019 are above the estimate. It is possible <br />co <br />that if this project were to be rebid over the winter for 2020 construction, prices closer to the Engineer's <br />Estimate may be obtained, but this is not certain. <br />In the Joint Powers Agreement Lino Lakes agreed to be the lead agency and execute the contract <br />00 agreement with the contractor. In order for Lino Lakes to award the project and enter into a contract with <br />T.A. Shifsky and Sons Inc., both cities would need to agree to go forward, and a resolution from City of Hugo <br />00 <br />N would be needed stating that the City of Hugo has reviewed the bids and found them to be acceptable, and <br />therefore recommends Lino Lakes enter into contract with T.A. Shifsky and Sons Inc. for the completion of <br />the 24th Avenue/Elmcrest Avenue and East Cedar Street Roadway Improvement Project. <br />If the City Council finds the higher than anticipated bid for completion of the work is unacceptable, a <br />Lo <br />resolution indicating that the City does not support approving the bid and awarding the contract, but <br />recommends the project be rebid for construction in 2020 would be appropriate. <br />z <br />Given the costs are above the Engineer's Estimate, it is recommended that the City Council consider these <br />bids and the merits of getting the project completed in 2019 vs. the possibility of rebidding in hopes of <br />a getting better bid prices by waiting until 2020 to construct the project. <br />z Sincerely, <br />WSB <br />Mark Erichson, PE <br />Sr. Project Manager <br />F Title <br />W <br />W Attachments <br />= cc: Bryan Bear, City of Hugo <br />Mark Erichson, WSB <br />W Paul Hornby, WSB <br />00 <br />kkp <br />K,k013907-000\AdminlConstruction Admin\Bidding1013907-000 LOR HUGO 081519.docx <br />