HomeMy WebLinkAbout5.C.2. Consider Awarding a Contract for Pike Lake Road, Project No. 2007-3-Res. No. 6599
5. c. 1- .
CITY OF SHAKOPEE
Memorandum CONSENT
TO: Mayor & City Council
Mark McNeill, City Administrator
FROM: Bruce Loney, Public Works Director
SUBJECT: Consider A warding a Contract for Pike Lake Road, from
CSAH 16 to 1100 Feet South ofCSAH l6 and a
Public Road 425 Feet West of Pike Lake Road, Project No. 2007-3
DATE: April 17, 2007
INTRODUCTION:
Attached is Resolution No. 6599, which accepts the bids and awards the contract for the
Pike Lake Road Improvement Project, Project No. 2007-3.
BACKGROUND:
Previously, the City Council on February 20, 2007, approved plans for the Pike Lake
Road Project and ordered an advertisement for bids. On April lO, 2007 a bid opening
was held on this project and a total of l5 bids opened for this project. The bids are
summarized in the attached resolution from the bid opening. The apparent low bidder is
Ryan Contracting Company with a bid of $527,749.99. The Engineer's estimate for this
project was $617,695.00. Most of this project cost will be assessed to the remaining
parcel owned by Tollefson Development, Inc. under an assessment agreement, with the
City and Shakopee Public Utilities participating in oversizing costs.
Associated with the opening of bids with this project is an attached bid protest from S.M.
Hentges & Sons, Inc., the 2nd low bidder on the project. This bid protest has been sent to
Jim Thomson, City Attorney, for his review witha response letter and a signed Proposal
Guarantee form after the bid opening from the apparent low bidder, Ryan Contracting
Company. Ryan Contracting did sign a proposal form with his bid, acknowledge the
addendums, and submit a bid bond for the project. The additional proposal guarantee
form was not included as was the case for 13 out of 15 bidders. Attached to this memo is
Mr. Thomson's determination ofthe bid protest and recommendation on award.
The City previously authorized an extension agreement with WSB & Associates, Inc. for
consultant engineering services for surveying and other construction administration
services as necessary for this project.
If City Council awards the contract, the City is also requesting a contingency amount
equal to 5% of the contract to cover minor change orders and quantity adjustments that
may occur on the project.
ALTERNATIVES:
1. Accept the low bid of Ryan Contracting Company and adopt Resolution No.
6599.
2. Reject the low bidder and award to another bidder.
3. Reject all bids and rebid.
4. Authorize 5% contingency amount on this project for use by the City Engineer in
authorizing change orders or quantity adjustments on this project.
5. Table for additional information.
RECOMMENDATION:
Staff recommends Alternative No. 1 and No.4 in order for this project to commence,
which is necessary for the elementary school by LS.D. #720 to open later this year.
ACTION REQUESTED:
1. Offer Resolution No. 6599, A Resolution Accepting Bids for Pike Lake Road
Improvements, from CSAH 16 to 1100 Feet South of CSAH 16 and a Public
Road 425 Feet West of Pike Lake Road, Project No. 2007-3 and move its
adoption.
2. Approve a 5% contingency amount on this project for use by the City Engineer in
authorizing change orders or quantity adjustments on this project.
BUpmp
ENGR/2007PROJECTlPlKELAKERDIWORDIMEM6599-ACCEPTBIDS
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis MN 55402
&
-- (612) 337-9300 telephone
(612) 337-9310 fax
www.kennedy-graven.com
CHARTERED
TO: Mayor and City Council
FROM: Jim Thomson, City Attorney ~
Sarah Sonsalla, Assistant City A Y
DATE: April 13, 2007
RE: Pike Lake Road Improvement Proj~t - Bid Protest
The City received a bid protest from the second lowest bidder (S.M. Hentges & Sons,
Inc.) on the Pike Lake Road Improvement Project. Hentges is contending that it, as the second
lowest bidder, should be awarded the contract because the lowest bidder (Ryan Contracting
Company) is not the lowest "responsive" bidder because Ryan neglected to fill out, sign and
submit the Proposal Guarantee fonn as part of its bid.
The Proposal Guarantee form was not included in the bid documents, but was in the
specifications book. The bidders were supposed to remove the Proposal Guarantee fonn in the
specifications book and submit it with the other bid documents. Because the Proposal Guarantee
form was separate from the other bid documents, the City only received the Proposal Guarantee
form from two of the fifteen bidders. Ryan has now submitted the Proposal Guarantee form.
A bidder who has deviated from the specifications may still be awarded the contract if the
deviation is not a "material variance." The general rule is that a variance is "material" if it gives
a bidder a substantial advantage or benefit not enjoyed by other bidders. In Foley Bros.. Inc. v.
Marshall. the Minnesota Supreme Court held that the statutory mandate that public con~cts be
let to the lowest responsible bidder overrides a minor technical defect in a low bid. In that case,
the low bidder forgot to include one of the forms that was required by the bid documents. The
Court found that another form that was submitted by the low bidder served substantially the
same purpose as the omitted fonn. The Court also pointed out that the omitted form, which was
ultimately submitted by the low bidder, was not required by statute or ordinance. Therefore, the
Court held that the failure by the bidder to submit the form in timely manner did not give any
advantage to the low bidder or cause any disadvantage to the other bidders.
It is our opinion that Ryan's late submission of the Proposal Guarantee is a minor
deviation that may be waived by the City Council because: (1) another form that was submitted
by Ryan as part of the bid documents serves substantially the same purpose as the Proposal
Guarantee; (2) the Proposal Guarantee is not required by statute or ordinance; and (3) the late
submission of the Proposal Guarantee did not give Ryan an advantage in the bidding process.
309S00vl SJS SHlS5.182
APRA P r, 11, 20075' 8:49AM Ci ty of Shakopee To:9S2 233No. 1546 P. 2/3~/3
LEONARD~ STREET AND DEINARD
~R.Orl!~SIONAL ^~~q\.IA IIIJ~
April 10, 2007 Robert J. H~lber
612-335-1714
J.ll~b. Ilubl.'ir@h:onard.cOlll
BY FAX ONJ.JV (952-233-3802)
Judy Cox, City Clerk
CITY OF SHAKOPEE
129 Holmes St.
Shakopee. MN 5537~
Re: BID PROTeST
Pike Lake Road a"d Street itA .'.' IlIlprtJve'mm~
S:A.P. No. 166-116-001
Veal' Ms. Cox:
1 am writing on behal f nf the l;econd low bidder, S. M. Hentges &, Sons, Inc... tu allk the Cit.y to
r~ject the bid of Ryan COl1tro.ctillg for its faihu'c to include lhe Pmposal Guarantee as pnrt of its bid.
Bids were opened today at 10:00 a.m. Ryan Conlracling, the apparent low bidder, submitted Ii bid
pl'oposal that did (lot jflclud~ the Proposal Guarantee tonn that was pa.l1 of the proposal form. in
other wOl'dst Ryan Contrd.Cting'~ hid did nr.)t submit Q "Complete Propo$al form," which under
Paragraph 15 is required to make the bid responl'live,
Unlike the bid tonn, which need only he signed by an "authorized" repre..:;entat.;ve of the bidder, the
Prupusa.! Guamntee must be signcd by an officer. The obvious purpose of this is to g;uarantcc th~l
t.he company is conmlltted to the statomonts in the Propollal Guarantee. The City believes tills to bl,:
criticEll, 01" it would not hay\;; Te;:quireU bidders to provide it with their bids. Additionally. IS bid.
without the Proposal Guarimtcc; dn~:; not include some of the infomlation required by Par~grd.ph 4
of the Jnlltru<.'tions to Bidders; that is, the "names, titles and business addresse... of the president,
st:crt:~ary and treasurer" ofthc company. A bid wilhout a Proposal Guarantee is materially non-
responsjve and 1'1.1\lSt be re.iected.
The proper course is to ..ej~t Ryan Contrdcting':; bid and award the contract to Hentges, the lowest
responsive bidder,
Sincerely,
I'" 70101)'111 1'11111 Sl Kl!H Sl.IlTIi 2JDO MINNRAPOI.I~_ MINNF.~OT.. 55402 Tn 61 2.~.15-1 son FA" ('I~ :1)$ 16S"f
3 7491l:i;l.1 I AW tllll~"5 IN MINNr.APOI.IS. SAIt,n PAIlI.. MANK^T.-., ~..II" I r:LUULI ^NIJ WA311INGTON. O.l'.
APRApr, 11, 20075~ 8:50AM City of Shakopee To:952 233 No, 1546 p, 3/3v3
.. v
A.prillO.2007
Page 2
cc: Brl1ce Loney-Public Works Din:ctoT (hy fa;1t)
Jim Thumsnn-Kennedy & Graven (by e~Uloi1)
Gary Zajac (hy e-n1ail)
'71'198'~ I
APR. 12. 2007 4:27PM RYAN CONTRACTING CO NO. 075 P. 2
CONTRACTING CO.
l DEVELDPIN& YOUR WORLD I
April 12, 2007
City of Shako pee
Attention: Judy Cox, CIty Clerk
129 Holmes Street
Shakopee, MN 55379
RE: PIKE LAKE ROAD AND STREET ~~A" IM"PROVEMENTS
SAP NO 166-116-001
Dear Ms. Cox:
We have been informed that the second low bidder on the above referenced project is protesting
our bid. Please be advised we are in total disagreement with their claim. It is our position that
our bid is materially responsive and should not be rejected for any reason.
Ryan Contracting Company did include a viable, proposal guarantee that utilized the intended
was Engineering bid documents. Our bid form and bid bond were signed by authorized
representatives of our company and are totally yalid. We are the low bidder and will accept the
award of the contract and our bid bond guarantees the City that we must accept the award or
forfeit the equivalent dollar amount of our bid bond. The fact is, our bid is $13,000 lower than the
second low bidder and the protest made by the second low bidder is at best a claim of a very
minor bid irregularity that the City is well within their rights to waive.
We are prepared to sign contracts, issue performance and payment bonds, provide proof of
insurance and start work immediately. We guarantee that this work will be done according to the
specifications of the City and meet the specified completion date stated in the bid documents.
If you have any further questionS or would like to discuss this matter further, please contact me at
952-894-3200 or my cell phone at 612-282-4330.
Thank you for your time in this matter.
Cc: Bruce loney - Public Works Director (by Fax)
Jim Thomson - Kennedy & Graven (by,Fax)
~DrpDra~e Headquar~~r5
a700 13th AvenUe! East 5haKopei!e. Minnesota 55379 952-894-3200 Fax: 952-894-3207
Wisconsin Office
9456 130th Ave. 8 h:U;;Jmer. Wisc:onsln 54724 715-568-3522 Fax: 715-568-3433
APR. 12. 2007 4:27PM RYAN CONTRACTING CO NO. 075 P. 3
~
J
PROPOSAL GUARANTEE
If awarded the Contract, the undersigned hereby agrees as follows:
- To execute said contract and furnish the required Perf'onnance and Payment Bond and
procure the required insurance within ten (10) consecutive calendar days from the date of
the Notice of Award of said contract.
- To complete all the work covered by the Contract Documents by the dates specified in
Special Provisions.
- To begin, complete, and deliver the work in accordance with the conditions set forth in the
Contract Documents.
The undersigned has checked carefully his or her Proposal figures, and understands that the City
will not be responsible for any error or omissions on the part of the undersigned :in preparing this
Proposal.
The undersigned hereby certifies that this Prop?sal is ge;o,uine, and not sham or collusive, or made
in the interest of or OD. behalf of any person no~ herein named, and that the undersigned has not, di-
rectly or indirectly, induced or solicited any other bidder to put in a sham bid, or induced any other
person, :firm or corporation to refrain from bidding, and that the undersigned has not :in any manner
sought by collusion to secure any advantage over any other bidder.
The only persons interested as principals in this Proposal, other than the one whose signature is
affixed hereto are the following (if there Ilone, ~ate the fact): /ifdl\fe
NAlYIE ADDRESS
NAME ADDRESS
NAME ADDRESS
The undersigned bidder submits herewith a Proposal Guarantee in the form of a bid bond, certified
check, or cashier's check in. favor of the City of Shako pee, :Mionesota., in the amount of not less than
five percent (5%) of the bid, and agrees and consents that the Proposal Guarantee shall be forfeited
to the City of Shakopee, Minnesota as liquidated damages if the required Contract Agr;eement and
Perfonnance and Payment Bond are not executed within ten (10) days from the Notice of Award.
City of Shakopee ~ Specifications
pike Lake ROlld llna Street "N' ImpX'Qvements ~
SHAKOPEE
~l'lrlPBBlloCIllII'
March 2007
f APR. 12.2007 4:28PM RYAN CONTRACTING CO NO. 075 P. 4
!
I In. submitting this bid/ the undersigned understands that the City reserves the right to reject any or
I all bids/ and to mive irregularities in bidding.
i Respectfully submitted,
I .
i By:
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! Title
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! Being a (Corporation, incorporated under the laws of the State of , composed
of officers, partners or owners/) (partnership) as follows:
~.w" {'~~7 a. Tkh!l'1S r~~
Name of ontractor President
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6'7dO . /,31% AFr e: ---- eNttJ 7 ~
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Address (Street orP.D. Box) Vic{President .
....sh~~<<.... ,hd- ST'.:?7~ Lf~ ~ ~e=--
City State Zip Secretaty
9rZ-89'1-3Zd] e-~ ~ _ z:;,.~
Telephone Number Treasurer
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City of Shakopee - Specifications
Pike Lake Road and Street "P,;' Improvements .~
SHAKOPEE
~DmI!~
March 2007
RESOLUTION NO. 6599
A Resolution Accepting Bids
For Pike Lake Road Improvements,
From CSAH 16 To 1100 Feet South
And A Public Road 425 Feet West Of Pike Lake Road
Project No. 2007-3
WHEREAS, pursuant to an advertisement for bids for Pike Lake Road Improvements,
from CSAH 16 to 1100 feet south and a public road 425 feet west of Pike Lake Road, Project No.
2007-3, bids were received, opened on April 10, 2007, and tabulated according to law, and the
following bids were received complying with the advertisement:
Bidder Amount
Ryan Contracting Company $527,749.99
S.M. Hentges & Sons, Inc. $541,679.29
Chard Tiling & Excavating, Inc. $556,429.85
Northwest Asphalt, Inc. $559,534.08
Friedges Contracting Co. $564,285.35
Burschville Construction, Inc. $590,827.09
Dirt Pro, Inc. $600,147.48
Heselton Construction LLC $601,411.70
Northdale Construction Co., Inc. $614,900.33
McNamara Contracting, Inc. $627,692.99
Three Rivers Construction $629,787.99
Kusske Construction Co. $648,022.00
Wm. Mueller & Sons, Inc. $676,392.96
Barbrossa & Sons, Inc. $681,313 .46
Park Construction Co. $727,796.65
WHEREAS, it appears that Ryan Contracting Company, 8700 13th Avenue East,
Shakopee, MN 55379 is the lowest responsible bidder for the Pike Lake Road Improvements;
WHEREAS, the City received a bid protest from the second low bidder S.M. Hentges &
Sons, Inc. contending that Hentges, as the second lowest bidder, should be awarded the contract
because Ryan Contracting Company neglected to fill out, sign and submit the Proposal Guarantee
form to its bid;
WHEREAS, Ryan has now filled out, signed and submitted the Proposal Guarantee
form;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SHAKOPEE, MINNESOTA:
1. The deviation from the specifications by Ryan Contracting Company is hereby
waived due to the fact that it is a minor technical defect and not a material variance from the
specifications.
2. The appropriate City officials are hereby authorized and directed to enter into a
contract with Ryan Contracting Company in the name of the City of Shakopee for the Pike Lake
Road Improvements Project according to the plans and specifications therefore approved by the
City Council and on file in the office of the City Clerk.
3. The City Clerk is hereby authorized and directed to return forthwith to all bidders
the deposits made with their bids, except that the deposits of the successful bidder and the next
lowest bidder shall be retained until a contract has been signed.
Adopted in session of the City Council of the City of Shakopee,
Minnesota, held this day of , 2007.
Mayor of the City of Shako pee
ATTEST:
City Clerk