CR 2000-078 Award Bid 2000 Alley Reconstruction
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CITY OF
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April 27, 2000
I-tOPK1NS
Council Report 2000- 78
Award Bid
2000 Alley Reconstruction
Proposed Action.
Staffrecommends adoption of the following motion: Move that Council Adopt Resolution 2000-
29, Resolution for Award of Bid, Alley Reconstruction, Project 00-02.
Overview.
Council at its April 4 meeting approved plans and ordered bids concerning reconstruction of
alleys in the 100 block between 1 ih/18th Avenues North and the 10 block between ih/8th
Avenues North. A bid opening was conducted April 27 and Council needs to take action on
award of the contract.
Primary Issues to Consider.
. Bid tabulation and recommendation
. Funding
. Schedule
Supporting Information.
. Proj ect specifications - Instruction to Bidders
. Letter to Nadeau Utility, Inc.
. Resolution 2000-29
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Engineering Superintendent
Financial Impact: $ 83,672.55 Budgeted: Y/N L Source: Storm Sewer Utility & Assessments
Related Documents (CIP, ERP, etc.): CIP and Feasibility Report
Notes: $59,600 from Special Assessments; $24,100 from Storm Sewer Utility
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Analysis.
. Bid tabulation and reconunendation
Contractor
Bid
Nadeau Utility Inc.
Ron Kassa Construction
Gunderson Bros. Cement
Standard Sidewalk
VP Enterprises
Scandy Concrete, Inc.
$74,883.20
83,672.55
8S,729.00
88,845.50
92,169.00
110,480.00
Engineers Estimate
$74,484.60
Six bids were received and tabulated. The low bidder was Nadeau Utility Inc. All
bids were reviewed for accuracy and qualifications. Upon review of Nadeau's
references it became evident that the contractor had no experience in installing
concrete alleys. This fact was verified in a phone conversation with the owner of the
company. In a later conversation the owner stood by his plan to use his current
manpower to carry out the planned work and would not consider employing a
qualified subcontractor.
Staffhas chosen to exercise the City's right to reject the Nadeau bid on the basis that
the contractor is not properly qualified to perform the alley work. Staff has consulted
with the City Attorney who has reviewed provisions ofthe project specifications and
concurs with a bid rejection. The contractor has been duly notified by letter and fax of
the staff recommendation. Rejection of the bid may mean paying Nadeau the cost of
his bid preparation, e.g. the cost of the bid bond.
Attention is then focused on the next low bidder, Ron Kassa Construction. This
contractor has experience in concrete alley construction with good recommendations
coming from the cities of St. Louis Park, South St. Paul and Columbia Heights. The
contractor has had considerable contract work in Hopkins in the past in the City's
sidewalk repair program. Staffreconunends award of bid to Ron Kassa Construction.
. Funding
Funding for this project is proposed to be through special assessments and the stonn
sewer utility. The Ron Kassa bid is roughly 12% higher than the engineer's estimate.
A portion of this increase is attributed to costs of storm sewer pipe installation.
However, the net effect of this bid is to potentially raise assessments in the 100 block
between 1 ih/1Sth Avenues North from $37/front foot to $41/front foot.
. Schedule
May 1
June 5
July 7
Bid award
Begin construction
Completion
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00100
INSTRUCTIONS TO BIDDERS
1.
DEFINED TERMS
Terms used in these Instructions to Bidders which are
defined in the Standard General Conditions or the
Supplementary Conditions have the meanings assigned to them
in the General Conditions or Supplementary Conditions. The
term IISuccessful Bidderll means the lowest qualified,
responsible Bidder to whom Owner (on the basis of Owner's
evaluation as hereinafter provided) makes an award.
2. COPIES OF BIDDING DOCUMENTS
2.1 Complete sets of the Bidding Documents in the number
and for the deposit sum stated in the Advertisement for
Bids may be obtained from City of Hopkins, Engineering
Department, 1010 1st Street S., Hopkins, MN 55343. The
deposit is nonrefundable. Bidding Documents are on
file at the office of the City Engineer, 1010 1st St.
S" Hopkins, MN, for review during normal working
hours.
2.2 Complete sets of Bidding Documents shall be used in
preparing Bids; neither Owner nor Engineer assumes any
responsibility for errors or misinterpretations
resulting from the use of incomplete sets of Bidding
Documents.
2.3 Owner and Engineer in making copies of Bidding
Documents available on the above terms do so only for
the purpose of obtaining Bids on the Work and do not
confer a license or grant for any other use.
3. QUALIFICATIONS OF BIDDERS
To demonstrate qualifications to perform the Work, each
Bidder must be prepared to submit within five days of
Owner's request written evidence, such as financial data,
previous municipal work experiences (minimum of 3), present
commitments and other such data as may be called for to
determine the ability of the Bidder to perform the work.
The Owner reserves the right to reject any bid if the
evidence submitted by, or investigation of, such Bidder
fails to satisfy the Owner that such Bidder is properly
qualified to carry out the obligations of the agreement and
to complete the work contemplated therein.
00100-1
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Cityoj%pkins
1010 !First Street soutli · J{opt(jns,9vf!Jl[ 55343-7573 · PFwru.; 612-935-8474 . !FlL{; 612-935-1834
April 28, 2000
Nadeau Utility, Inc.
20005 Highway 81
Maple Grove, MN 55311
Subject:
Bid Results
Alley Improvement Project 00-02
Hopkins, MN
Dear Sirs:
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The purpose of this letter is to notify you that staffwill recommend rejection of your bid
for the above project at the May 2, 2000, Hopkins City Council meeting.
The reason for this recommendation is that in reviewing your referral list of past work
and by your own personal statement in an April 27, 2000, phone conversation you do not
have the experience to perform the work As stated in Paragraph III of Instruction to
Bidders, prior experience in this type of concrete work is required to be considered a
qualified bidder.
This action is not taken lightly, yet we feel it is required to assure our residents of quality
work done at their expense. You are welcome to attend the Council meeting scheduled
for 7:30 p.m. on May 2, 2000, in the Council Chambers.
Sincerely,
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James Gessele
Engineering Supervisor
Copy: Steve Stadler
Steve Mielke
Jeremy Steiner
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J/J1 'Equal Opportunity 'EmprOlJff
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MILLER, STEINER & CURTISS, P.A.
PROFESSIONA L ASSOCIATION
A TTORNEYS AT LA W
JERRE A, MILLER
JEREMY S. STEINER *
WYNN CURTISS
400 NOR WEST BANK BUILDING
1011 FIRST STREET SOUTH
HOPKINS, MINNESOTA 5534]
.. Real Propcny LaW Specinlisl, certified
952-938-7635
FAX 952-938-7670
b'w' Inc MinneSOla Slale Rar ^~s-nciilliorl
MEMORANDUM
DATE:
May 2, 2000
TO:
Steve Stadler, Public Works Director _-
James Gessele, Engineering Supervisor ~.
FROM:
(.55
Jerry Steiner
RE:
Rejection of Bid by Nadeau Utility, Inc.
For Alley Improvement Project 00-02
You have asked that l provide this Memo regarding your recommendation that the City Counci I reject the
bid of Nadeau Utility, lnc. ("Nadeau"), to perform concrete alley construction as part of the above project.
It is my understanding you have determined, and Nadeau has confirmed, that Nadeau has no prior
experience with concrete alley construction work.
It is my opinion the City has the discretion to reject Nadeau's bid for the concrete alley construction work
even though that bid may have been the lowest of the bids received by the City for this project. While the
City Charter, the Local Improvements Statute (Minn. Stat. Chapter 429) and the Uniform Municipal
Contracting Law (Minn. Stat. 471.345) do require that bids for this type of work be awarded to the lowest
responsible bidder, it is well established law in Minnesota that a "responsible" bidder must not only be
financially responsible, but must also demonstrate "integrity, skill and ability, and the likelihood of the
bidders doing faithful and satisfactory work." KellinK v, Edwards, 134 NW 221. Municipal Officials, in
determining whether a bidder is "responsible" arc given significant discretion in determining the skill and
ability of the bidder and likelihood of the bidder performing satisfactory work. Because Nadeau has no
previous experience in concrete alley construction, and because, in your opinion, this lack of experience
creates the possibility Nadeau will not perform satisfactory work. it is my opinion the City would be within
its discretion if Nadeau's bid is rejected as not responsible.
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It should also be noted that Sections 3 and 16 ofthe Specifications for Project 00-02 state that bidders must
"demonstrate qualifications to perform the work" and that the City reserved the right to reject bids from
"unqualified" bidders. Thus, it was made clear to all bidders. including Nadeau, that demonstrated ahility
to perform concrete alley construction work would be rllllong the qualifications ofa "responsible" bidder.
In my opinion, the City would be within its discretion to reject a low bid from an inexperienced contractor
even if this explicit language on bidder's qualifications was not included in the specifications for the
project. In this case, it was made very clear to all bidders that the bidder's ability to perform concrete alley
construction work would be a qualification of a responsible
c. \file\hopc Ivll1lcmo. stadl er
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bidder. Therefore, it cannot be asserted that Nadeau was unaware prior work experience ofthis type would
be considered a qualification of a responsible bidder.
Please call me if you have any questions.
JSS
JSS/drs
Ene.
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c: \fi I c\hopciv\mcmo. sladl er
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CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION NO. 2000-29
RESOLUTION FOR AWARD OF BID
ALLEY RECONSTRUCTION
CITY PROJECT 00-02
BE IT RESOLVED BY THE CITY COUNCIL OF HOPKINS, MINNESOTA, that the
bid of Ron Kassa Construction, Inc. in the amount of $S3,672.55 is the lowest responsible bid for
the reconstruction of alleys in the 100 block between I ihl1Sth Avenues North and the 10 block
between ih/sth Avenues North, City Project 00-02, and the Mayor and City Manager are hereby
authorized and directed to enter into a contract with said bidder for and on behalf of the City.
Adopted by the City Council of the City of Hopkins this 2nd day of May, 2000.
Eugene J. Maxwell, Mayor
ATTEST:
Terry Obermaier, City Clerk