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  Consent Calendar   4.D.       
City Council Regular Meeting
Meeting Date: 05/13/2019  

Agenda Item:
Consideration of bids on Capital Improvement Project 10668; Poplar Street and Branson Street Improvements.
Recommendation/Action(s):
Pass resolution accepting bids on Capital Improvement Project 10668; Poplar and Branson Streets awarding contract to MN Paving & Materials of Mankato, MN in the amount of $1,448,644.49.
Summary:
Bids were opened for the Poplar and Branson Streets project on April 26, two bids were received both approximately 40% above the engineer’s estimate.  
 
The scope of the project did not materially change from the CIP estimate to the bid estimate. In reviewing the bid a large majority of the difference between the engineer’s estimate and the bid were the costs for sanitary sewer, watermain and storm sewer related work. The higher costs can be attributed to the nature of the work being performed and the current market for contractors that are able to perform this work.   
 
One of the major components of this project is replacing a 30-inch diameter trunk sewer line that over 15-feet deep. The work necessary to replace this pipe in a constrained right-of-way can be challenging and therefore require specialized equipment and constriction techniques. The cost for the installation of this pipe alone accounts for over 25% of the difference in the engineer’s estimate and the low bid.  
 
An evaluation of the reconstruction work that is taking place regionally also appears to being influencing the current market. Many of the local contactors that typically bid on work with the City of Mankato have been successful on current projects, or are performing work in neighboring communities. This competition for skilled labor, specifically underground utility crews, is increasing the cost of construction.  
 
Funding for a majority of this project is being provided by the various utilities. Because of this, the amount of general obligation bonding on this project will not change significantly. Additionally the amount of the special assessments that were set at the preliminary assessment hearing will not change.  
 
Based on the previously discussed factors, Public Works personnel recommends awarding the construction contract for Capital Improvement Project Number 10668 to MN Paving & Materials. The contract has a final completion date of August 15, 2019 and construction is anticipated to start in late May. 
 
Engineering personnel and representatives of the contractor will meet with the property owners prior to construction to explain the work schedule, access to homes and businesses during construction, mail delivery, garbage collection, and other miscellaneous items of interest to the residents.
Attachments
Resolution
Bids Received and Budget

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