CR 97-68 Bid Award Storm Sewer Project 96-17
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April 9, 1997
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council Report No. 97-68
AWARD OF BID
STORK SEWER PROJECT 96-17
STREET OVERLAY PROJECT 96-18
Proposed Ac~ion.
staff recommends adoption of the following motion: Move that
council approve resolution 97-37. Resolution for Award of Bid.
City proiects 96-17 and 96-18.
OVerview.
council in previous action approved final plans for a storm sewer
project on 2nd Street North and another residential street mill
and overlay project in various locations throughout the city.
Bids were solicited as part of the 1st Street North project and a
bid opening conducted on March 4, 1997. This report concerns bid
results and staff recommendations for award of contract.
primarv Issues to consider.
o Bid tabulation
o Project costs
o Timetable
o Staff recommendation
SUDDor~ina Informa~ion.
o Consultant recommendation
o Detailed bid tabulation
o Resolution 97-37
JamO::::se~
Engineering superintendent
Council Report 97-68
April 9, 1997
Page 2
Analvsis
o Bid ta~ulation
Schedule
A. 1st St. North
B. 2nd Ave. Storm Sewer
C. Mill & Overlay
Total
Emrineer's Est.
$305,000.00
$ 82,787.00
$ 56.270.00
$444,057.00
Midwest Asphalt
$327,286.22
$ 95,134.10
$ 70.055.00
Hardrives
$347,236,76
$\02,463.20
$ 59.8\0.30
$492,475.32
$509,510.26
Although it appears Hardrives is the low bidder in
schedule C and the low bidder under combined
schedules Band C, the bid must be awarded to Midwest
Asphalt. The bid proposal was structured in a manner that
award was to be based upon the low bidder for the sum of
all three sections. In addition the proposal calls for
two separate contracts executed by the successful low
bidder: Schedule A and Schedule BjC.
Staff has reviewed all bids and contractor qualifications.
Midwest Asphalt is a reputable firm in the Twin city area
and is capable of completing the work on schedule.
o Project costs
Staff would have preferred a higher level of bidder
participation in this process. The bids are roughly
11%-15% higher than the engineer's estimate. Council'S
attention is directed to the attached consultant's
analysis and recommendation concerning the bid award.
The storm sewer installation will be funded by the storm
sewer utility. The mill and overlay project will be
supported by general funds.
o Tillleta~le
April 15
June 2
August 1
Award bid
Begin construction
Completion
o Staff recommendation
staff concurs with the consultant's assessment and
recommends award of bid to Midwest Asphalt.
E30LTON &. IVIE:NK, INC.
Consulting Engin rs & Surveyors
1515 East Highway 13 . Burnsville, MN 55337-6857
Phone (612) 890-0509. FAX (612) 890-8065
March 6, 1997
Mr. Steve Stadler
Director of Public Works
1010 1st Street
Hopkins, MN 55343
RE: Reconunendations of Award
First Street North (SAP 132-343-02)
2nd Ave. Storm Sewer and Residential Street Improvements - 1997
BMINo. TC96.0133 and TC96.0174
Dear Mr. Stadler:
Enclosed please find an abstract of bids for the above referenced projects. We have reviewed the bids
received on March 4, 1997 for the above referenced projects. The low bidder was Midwest Asphalt for
$492,475.32 with a second bid received from Hardrives, Inc. for $509,510.26. A breakdown summary of
the Engineer's Estimate and the two (2) bids received on these projects is as follows: .
Schedule Engineer's Estimate Midwest Asphalt Hardrives, Inc.
A. First Street North $305,000.00 $327,286.22 $347,236.76
B. 2nd Ave. Storm Sewer $82,787.00 $95,134.10 $102,463.20
C. Residential Street Imp. $56,270.00 $70,055.00 $59,810.30
Total $444,057.00 $492,475.32 $509,510.26
% Over Engineers Estimate 10.9% 14.7%
A review of the bid items, as well as discussions \vit.1:I the contractors, indicate the following reasons for the
increased construction costs:
1. Concrete Items
In past years, concrete curb and gutter was bid at $5.50 to $6.00 per linear foot. 1bis year the bid
price came in at $7.40 per linear foot, a 25% increase. The costs for all concrete items including
sidewalk, curb and gutter and driveways are higher than past years due to an anticipated shortage
in cement mix causing supply shortages. Several bids were received by the low bidder for the
concrete work - all were within 10% of each other establishing a market basis.
2. Bituminous Material
In past years, bituminous material was bid at $23.00 to $24.00 per ton. 1bis year, the bid price came
in at $28.00 per ton. MnDOT has required all bituminous oil suppliers to change from a penetration
I
FAIRMONT, MN
SLEEPY EYE, MN
BURNSVILLE, MN
AMES.IA
LIBERTY. MO
MANKATO, MN
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grade to a performance grade. Contrary to MnDOT's estimation, this has caused a $2.00/ton
increase. As seen with heating oil, the cost for bituminous oil has increased, although to a lesser
extent, due to the same market trends. In addition, the bituminous base between the proposed curb
and overlay sections is very labor intensive and was bid according to the past experience of the
contractor.
3. Constructabilitv
The process of removing the old curb and bituminous, constructing new curb and patching with
bituminous base between the existing pavement edge and the new curb is very labor intensive and
requires small equipment Both contractors bid this work according to past experience and present
market conditions.
It would not be beneficial to reject these bids and re-advertise this work due to the fact that the increased
costs are due to market trends of materials. Re-bidding of this work would most likely result in similar unit
prices causing unnecessary delays in the project. It is our recommendation that the low bidder, Midwest
Asphalt be awarded the contract.
Sincerely,
BOLTON & MENK, INe.
Ronald A. Roetzel, PE
Project Manager
cc: Jim Gessele, City of Hopkins
Matt Timers, Midwest Asphalt
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CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 97-37
RESOLUTION FOR AWARD OF BID
CITY PROJECTS 96-17 AND 96-18
WHEREAS, City Projects 96-13 (First street North
reconstruction), 96-17 (storm sewer installation) and 96-18
(street mill and overlay) were presented as separate schedules
and components of a larger, single bid proposal, and
WHEREAS, the award of bid, as directed in the proposal, was
to be based upon the low bidder for the sum of all three
sections, and
WHEREAS, two separate contracts, one for Project 96-13, and
one for Projects 96-17 and 96-18, were to be executed by the
successful low bidder, and
WHEREAS, Midwest Asphalt Corporation is the lowest bidder,
NOW THEREFORE, BE IT RESOLVED BY THE CITY OF HOPKINS,
MINNESOTA, that the bids of Midwest Asphalt corporation in the
amounts of $95,134.10 for project 96-17 and $70,055.00 for
Project 96-18, in sum a total of $165,189.10, constitutes the
lowest responsible bid, 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, Minnesota,
this 15th day of April, 1997.
Charles D. Redepenning, Mayor
Attest:
Terry Obermaier, City Clerk