CR 95-133 BA Random Repair
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July 27, 1995 Council Report 95-133
AWARD OF BID
RANDOM REPAIR OF SIDEWALK
Prooosed Action.
Staff recommends adoption of the following motion: Move that
Council adoot Resolution 95-61. Resolution For Award of Bid.
Random Reoair of Sidewalk. proiect 95-04.
Overview.
Engineering staff has completed sidewalk inspection in the last
of the four designated city sidewalk zones. A bid opening was
held July 20 and this report expands on that process.
primarv Issues to Consider.
. Bid tabulation
. . 1995 sidewalk repair budget
. project options
. Recommendation
SUDoortinq Information.
. Detailed bid tabulation
. Memo from Finance Director
. Resolution 95-61
~-l~es~
Engineering Superintendent
.
. CR 95-133
Page 2
Primary Issues to Consider.
0 Bid Tabulation
Bidder Total Bid
Gunderson Brothers Cement $ 79,723.48
Sunram Construction 84,843.20
West star 91,753.80
Muller Construction 91,894.25
Advanced Concrete 105,232.63
Curb Masters 112,324.75
Lindahl & Carlson 125,452.50
0 1995 sidewalk repair budget
When the concept of four sidewalk inspection zones was
established, staff anticipated an average repair budget of
$45,000 per year. The Capital Improvements Plan for each of the
past four years has reflected that target amount even though
staff was aware that in some years the budget could be exceeded,
in others the cost would be under the threshold. True to course,
the City budgeted $45,000 towards construction aspects of the
1995 sidewalk repair programs. The low bid of $79,723.48 far
e exceeds the budget.
Staff offers here a summary comparison of 1994's program with
that proposed for 1995:
Remove and reolace sidewalk
1994 - 9,014 SF @ $2.75 = $24,788.50
1995 - 17,307 SF @ $2.74 = $47,421.18
Reoair pedestrian ramps
1994 - 1,734 SF @ $3.90 = $ 6,762.60
1995 - 4,793 SF @ $3.85 = 18,453.05
This summary clearly demonstrates that the amount of work to be
done is the basis for increased project costs and not the bid
unit prices.
0 Project options
staff offers the following alternatives:
1. Reject all bids and re-order the bidding process.
2. Pare back contract quantities and thus lower the contract
amount.
. 3. Proceed with awarding the bid to the low bidder.
. CR 95-133
Page 3
The first alternative is feasible, however construction might
well run into the month of October. There is no guarantee that
bid prices would be appreciably lower. Council should note that
the 1995 bid prices are already lower than those of 1994. The new
bid proposal would need to reflect a smaller project.
To cut project costs the city should view scaling back the scope
of the project, revisit certain areas of the inspection zone, and
eliminate some sidewalks from the program. The City Attorney
advises that the project specifications provide for this but with
the proviso that the contractor consents to such a cut. Staff
could realistically anticipate negotiating a 20% cut in the
quantities, approximately $16,000.00.
The final alternative is for the city to accept the low bid and
proceed with awarding the contract. The overrun would need to be
funded by contingency sources.
0 Recommendation
Staff views the first two alternatives somewhat skeptically. The
City Attorney warns us that eliminating certain marked sidewalk
. sections from consideration leaves the city in a vulnerable
position regarding future liability. The case could be made: how
can the city in good conscience find sidewalk sections in a state
of disrepair to such extent that they offer a hazard and are
therefore marked for removal, but later find them "safe" and
remove them from project consideration? It should be noted that
inspections were done by judicious application of City standards
and no markings were made by overzealous inspectors.
Attached is a memo from the finance office discussing the status
of the city's general contingency fund. Based on that memo, the
above discussion of liability issues, and the contractor's
impeccable credentials, staff recommends award of the contract to
Gunderson Brothers Cement in the amount of $79,723.48. Staff also
recommends that the budget overrun be funded by the general
contingency fund.
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. CITY OF HOPKINS
MEMORANDUM
TO: steven Mielke, City Manager
FROM: John E. Schedler, Finance Dire~
DATE: July 26, 1995
SUBJECT: General Fund Contingency 1995
A review of the 1995 General Fund Budget compared to six
months actual amounts was done.
On an annualized basis, it appears Revenues will be close to
the budget and Expenditures will run below budget producing
a possible excess of funds. The excess would more than
cover the unanticipated items listed below and leave an
additional surplus. Unanticipated costs are identified as:
Roof repair to City Hall:
Bid exceeded budget by $11(000
Added cost - high roof and fascia 13,000
. Youth coffee house project 5,000
Sidewalk repair bids in excess of budget 34,000
$63,000
.
CITY OF HOPKINS
~ Hennepin County, Minnesota
RESOLUTION NO: 95-61
RESOLUTION FOR AWARD OF BID
Random Repair of Sidewalk
CITY PROJECT 95-04
BE IT RESOLVED BY THE CITY COUNCIL OF HOPKINS, MINNESOTA,
that the bid of Gunderson Bros. Cement in the amount of
$79,723.48 is the lowest responsible bid for random repair of
city sidewalk, city Project 95-04 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 1st day
of August, 1995
.
Charles D.Redepenning, Mayor
ATTEST:
James A.Genellie, city Clerk
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