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CR 97-169 Bid Award Hopkins Plaza Storm SewerSeptember 30, 1997 Proposed Action. Staff recommends adoption of the following motion: Move that Council reject bids received and table Project 97 -08 until spring 1998 as recommended by the consulting engineer. Overview. P K BID AWARD HOPKINS PLAZA /HOPKINS HOME CENTER STORM SEWER Council Report No. 97 -169 A bid opening concerning the Hopkins Plaza /Hopkins Home Center storm sewer project was conducted September 18. Of the three bids received, the low bid of $68,450.00 was approximately 400 above the engineer's estimate of $48,900.00. The City's consultant engineer, RCM Associates, believes the major factor in such high bids is a shortage of qualified pipe jacking contractors and a backlog of work for those who are in business. RCM recommends rejecting the bids and readvertising a stand -alone project or one combined with the 6th Avenue /3rd Street North project next spring. Primary Issues to Consider. • What is the impact of waiting until spring 1998? The only risk is that a current storm sewer pipe adjacent to Hopkins Home Center could fail over the course of the winter and the City would need to make a difficult emergency repair. Pipe flow capacity is not an issue. There is the additional cost to readvertise the project. There also is the inconvenience to the adjacent property owners to delay any landscaping improvements they may want to make. • Staff Recommendation Staff recommends Council reJect bids. Staff will return at a future Council meeting for permission to proceed with a recommended course of action. Supporting Information. • RCM Associates letter j imm A .) James Gessele Engineering Superintendent rieke carroll muller "ociates, inc. leers ,rtects ,d surveyors equal opportunity employer years of helping build Carrm 10901 red circle dr. st office box 130 f nnetonka, mn 343 -0130 (612) 935 -6901 fax (612) 935 -8814 www.rcm - assoc.com September 23, 1997 Mr. Steven Stadler Public Works Director City of Hopkins 1010 First Street South Hopkins, MN 55343 Re: Storm Sewer Improvements Hopkins Plaza/Hopkins Home Center Recommendation to Reject Bids RCM File No. 10400.02 Dear Mr. Stadler: RCM has reviewed the bids received on September 18, 1997 for the subject project. A total of 3 bids were received. The low bid is approximately 40 percent higher than the engineer's estimate. In reviewing the bids received, we have determined that costs for pipe jacking are considerably higher than we had anticipated, due in part to a work backlog for jacking contractors. On this basis, RCM recommends that this project be readvertised next spring or be combined with the 6th Avenue Storm Sewer project. RCM also reviewed references provided by the apparent low bidder, Dave Perkins Contracting, Inc. The communities of Edina, Maple Grove, Minnetonka and New Hope responded with favorable recommendations. In addition, the jacking subcontractor proposed by the apparent low . bidder is EJM Pipe Services, Inc., whose reputation in this line of work is excellent. If you have questions or desire further information, please contact me. Sincerely, Robert L. Moberg, P.E. Project Manager RIEKE CARROLL MULLER ASSOCIATES, IN RLM/ka