HomeMy WebLinkAbout4.A.1. Award Contract for the Upper Valley Drainage Way and Trail Improvements by CR 17 Project No. 2011-3-Res. No. 7214 LL A • 1.
CITY OF SHAKOPEE CONSENT
Memorandum
TO: Mayor & City Council
Mark McNeill, City Administrator
FROM: Bruce Loney, Public Works Director
SUBJECT: Consider Awarding a Contract for the Upper Valley Drainage Way and
Trail Improvements by CR 17, Project No. 2011 -3
DATE: July 17, 2012
ACTION SOUGHT:
Offer Resolution No.7214, A Resolution Accepting Bids on the Upper Valley Drainage
Way and Trail Improvements, Project No. 2011 -3 and move its adoption; and approve a
5% contingency amount on this project for use by the City Engineer in authorizing
change orders or quantity adjustments on this project.
INTRODUCTION:
Attached is Resolution No.7214, which accepts the bids and awards a contract for the
Upper Valley Drainage Way and Trail Improvements by CR 17, Project No. 2011 -3.
BACKGROUND:
On June 5, 2012, City Council adopted Resolution No. 7203, which approved the plans
and specifications and authorized staff to advertise for bids for the Upper Valley
Drainage Way and Trail Improvements by CR 17, Project No. 2011 -3.
On July 11, 2012, a bid opening was held for the Upper Valley Drainage Way and Trail
Improvements project, in which there were two bids opened for this improvement project.
The bids are summarized in the attached resolution. From the bid opening, the low
bidder is Krueger Excavating, Inc. with a bid of $174,725.00. The Engineer's estimate
for this project is $156,000.00.
Funding of this project is from the Storm Drainage fund in which sufficient funds exist to
fund this project. The City did receive two competitive bids on a project that has a variety
of work items. The low bid is 12% higher than estimated. However, staff believes this is
an acceptable bid and would recommend to award a contract to Krueger Excavating, Inc.
If Council awards the contract, staff 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.
DISCUSSION:
The main issue with this item would be whether to award a contract that is 12% over the
engineer's estimate.
ALTERNATIVES:
1. Accept the low bid of $174,725.00 and adopt Resolution No.7214.
2. Reject the low bidder and award to another bidder.
3. Reject all bids and rebid.
4. Approve a 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.
BUDGET IMPACT:
None, as funding is from the Storm Drainage Fund.
RECOMMENDATION:
Staff recommends Alternative No. 1 and No. 4 in order for this project to commence with
funding out of the storm drainage fund.
RELATIONSHIP TO VISIONING:
This supports Goal E — "Deliver effective and efficient public services by a staff of well -
trained, caring, and professional employees ".
ACTION REQUESTED:
1. Offer Resolution No.7214, A Resolution Accepting Bids on the Upper Valley
Drainage Way and Trail Improvements, Project No. 2011 -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.
&on1
Public Works Dctor
ENGR 2011- PROJECTS: UPPERV ALLEYDRA[NAGF MEM7214 -A W ARD- CONTRACT
RESOLUTION NO. 7214
A Resolution Accepting Bids For
For The Upper Valley Drainage Way and Trail Improvements by CR 17
Project No. 2011 -3
WHEREAS, pursuant to an advertisement for bids for the Upper Valley Drainage Way and
Trail Improvements by CR 17, Project No. 2011 -3, bids were received, opened on July 11, 2012,
and tabulated according to law, and the following bids were received complying with the
advertisement:
Bidder Amount
Krueger Excavating, Inc. $174,725.00
Chard Tiling & Excavating, Inc. $177,041.25
WHEREAS, it appears that Krueger Excavating, Inc, 7577 175` St. E. Prior Lake, MN
55372, is the lowest responsible bidder for the Upper Valley Drainage Way & Trail Improvements
by CR 17 Project.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SHAKOPEE, MINNESOTA:
1. The appropriate City officials are hereby authorized and directed to enter into a
contract with Krueger Excavating, Inc. in the name of the City of Shakopee for the Upper Valley
Drainage Way & Trail Improvements by CR 17 Project according to the plans and specifications
therefore approved by the City Council and on file in the office of City Clerk.
2. 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 , 2012.
Mayor of the City of Shakopee
ATTEST:
City Clerk
ENGR201I- PROJECTS- UPPERVALLEYDRAINAGE RES72I-1- AWARD - CONTRACT