HomeMy WebLinkAbout20090803 - VII-1MEMO
To: Honorable Mayor and City Council
From: Nick Egger
Date: July 28, 2009
Re: Award Contract – Project 2009-1, Industrial Park Area Improvements
Eight bids were received and opened for the Industrial Park Area Improvements on Thursday,
July 16. As part of the proposal review process, the qualifications of the lowest bidder,
Northwest Asphalt, Inc., were reviewed and found to meet the minimum requirements for
recommending award of contract. The estimated construction cost for this project was $3.0
Million. A listing of the bids received is below.
Bidder Bid
Northwest Asphalt, Inc. $2,229,790.98
Veit, Inc. $2,261,438.50
McNamara Contracting, Inc. $2,277,198.28
Arcon Construction Co. $2,357,602.54
Valley Paving, Inc. $2,368,249.75
Pember Companies, Inc. $2,444,611.81
Ryan Contracting, Inc. $2,505,768.34
Max Steininger, Inc. $2,758,050.01
Part of the bidding requirements stipulated that bidders provide the City with a price for
alternate bid items to perform excavation and grading work within the Industrial Park ponding
basin in order to generate usable material for use as fill in the ravine restoration work. The
proposal provided by Northwest Asphalt allows for a fair amount of cost savings to perform
the work of the alternate bid items compared to hauling in material from outside the City.
Staff Recommendation
Staff is recommending that the Council approve the attached resolution awarding the contract
for this project to Northwest Asphalt, and approving the inclusion of the alternate bid items in
the project.
Additional Information
In the past, property owners have inquired as to whether the assessment amounts would be
reduced as a result of lower than estimated construction costs. In anticipation of this question,
I’d like to present several points regarding the extremely competitive bids and the Industrial
Park project low bid being approximately 24% lower than the estimated construction costs:
?The City’s policy by ordinance for assessments states that the assessment rate for this
is based on the estimated
type of project (involving a Municipal State Aid Street)
construction costs
, rather than the actual construction costs.
st
?The assessment rate for the reconstruction of 31 Street in 2004 was set at $49.50, or
$2.50 more than the rate proposed for this year’s project.
?The low bid will result in the City’s bonded debt required to finance the project being
reduced, which is a benefit to all City taxpayers. Overall, it is estimated that the City’s
bonded debt contribution for this project will fall in closer to $1.0 Million rather than
th
the $1.6 Million that was estimated at the time of the May 18 Public Hearing.
CITY OF HASTINGS
DC,M
AKOTA OUNTY INNESOTA
Resolution No.
RRBAC
ESOLUTION ECEIVING IDS AND WARDING ONTRACT FOR
P2009-1,IPAI
ROJECT NDUSTRIAL ARK REA MPROVEMENTS
WHEREAS
, pursuant to an advertisement for bids for Project 2009-1, the Industrial Park Area
Improvements, bids were opened on July 16, 2009 and tabulated according to law, and the following
bids were received:
Bidder Bid
Northwest Asphalt, Inc. $2,229,790.98
Veit, Inc. $2,261,438.50
McNamara Contracting, Inc. $2,277,198.28
Arcon Construction Co. $2,357,602.54
Valley Paving, Inc. $2,368,249.75
Pember Companies, Inc. $2,444,611.81
Ryan Contracting, Inc. $2,505,768.34
Max Steininger, Inc. $2,758,050.01
WHEREAS
, Northwest Asphalt, Inc. is the lowest bidder, and
WHEREAS
, Northwest Asphalt, Inc. has been determined to be qualified for the contract, and
WHEREAS
, the proposal of Northwest Asphalt for alternate bid items will provide a cost savings for
the City.
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
HASTINGS AS FOLLOWS;
1. The Clerk and Mayor are hereby authorized and directed to enter into a contract with
Northwest Asphalt, Inc. in the amount of $2,229,790.98 for Project 2009-1, the Industrial
Park Area Improvements.
2. The alternate bid items are hereby approved for inclusion in the project.
rd
ADOPTED BY THE CITY COUNCIL OF HASTINGS, MINNESOTA, THIS 3 DAY OF
AUGUST, 2009.
Ayes:
Nays:
Paul J. Hicks, Mayor
ATTEST:
Melanie Mesko Lee, City Clerk (Seal)