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Shakopee City Council
April 7, 2020
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| | | | | | | | | FROM: | Ryan Halverson, Assistant City Engineer | | TO: | Mayor and Council Members |
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| | | | | | | | Subject:
Award a contract for the 12th Avenue Trail Project CIF-20-003. | | |
| | | | | | | | Policy/Action Requested:
Adopt Resolution R2020-046, awarding a contract in the amount of $839,376.20 to Rosti Construction, Co., for the 12th Avenue Trail Project CIF-20-003. | | |
| | | | | | | | Recommendation:
Approval of Resolution R2020-046. | | |
| | | | | | | | Discussion:
The city's Capital Improvement Plan (CIP) contains the 12th Avenue Reconstruction Project CIF-20-003. On March 4, 2020, the City Council adopted Resolution R2020-017 approving the plans and specifications, and authorizing bidding of the project.
In accordance with Minnesota Statute Section 471.347 Uniform Municipal Contracting Law, bids were solicited and opened on March 30, 2020. Six (6) bids were received and JD Construction of MN, LLC., from Jordan, MN, was the initial apparent low bidder in the amount of $772,305.06. The 2nd lowest bid was from Rosti Construction, Co., Jordan, MN, in the amount of $839,376.20 (see the attached resolution for the bid tabulation summary), a $67,071.14 difference between the two lowest bids.
After review of the bid tabulations, it was determined that JD Construction of MN, LLC., made an error in the submission of their bid. An addendum was issued during bidding that replaced the original bid proposal form (which is quite common) and added two additional pay items. JD Construction of MN, LLC., signed an acknowledgement of the addendum. However, they did not submit their bid on the revised bid proposal form which by default resulted in an incomplete bid without having unit prices for the two added items. As a result, the bid of JD Construction of MN, LLC., is considered and recommended to be non-responsive and disqualified.
Therefore, the second low bid received from Rosti Construction, Co., is consider the lowest responsive bid. It is a competitive bid and is 0.2 percent over the current engineer's estimate of $837,780.27. Rosti Construction, Co., has the capacity and experience for the project and is deemed a responsible bidder. They are prepared to begin work in May with an anticipated completion in September 2020. | | |
| | | | | | | | Budget Impact:
Based on the low bid amount, the updated total estimated project cost and funding summary is as follows:
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January 2019
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Estimate Based |
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Adjusted Budget
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On Bid Award |
| COSTS |
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| Construction Cost |
$ 656,000 |
$ 839,376.20 |
| Contingency |
$ 80,000 |
$ 40,000.00 |
| Subtotal |
$ 736,000 |
$ 879,376.20 |
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|
|
| Easement Acquisition |
$ 242,000 |
$ 242,000.00 |
| Eng/Admin/Legal |
$ 140,000 |
$ 140,000.00 |
| Total Estimated Project Cost |
$ 1,118,000 |
$ 1,261,376.20 |
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| FUNDING |
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| Capital Improvement Fund |
$ 240,000 |
$ 240,000.00 |
| Municipal State Aid |
$ 698,000
|
$ 793,376.20 |
| Grant |
$ 150,000 |
$ 150,000.00 |
| Shakopee Public Utilities |
$ 30,000 |
$ 78,000.00 |
| Total Funding |
$ 1,118,000 |
$ 1,261,376.20 |
The total project budget of $1,261,376.20 is over the approved budget from January 2019 by approximately 12.8 percent and includes a small contingency amount that covers any unexpected change orders, quantity adjustments and other miscellaneous expenses encountered as part of the project.
This project is funded by Special Assessments, Capital Improvement Fund, Sanitary Sewer Fund, and Shakopee Public Utilities. The current Municipal State Aid apportionments and SPUC funding are adequate to account for the additional project costs. | | |
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