H-2. 2016 Street Improvements Project 16-01: Reject BidA
1
CITY OF
CHANNSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952.227.1100
Fax: 952.227.1110
Building Inspections
Phone: 952.227.1180
Fax: 952.227.1190
Engineering
Phone: 952.227.1160
Fax: 952.227.1170
Finance
Phone: 952.227.1140
Fax: 952.227.1110
Park & Recreation
Phone: 952.227.1120
Fax: 952.227.1110
Recreation Center
2310 Coulter Boulevard
Phone: 952.227.1400
Fax: 952.227.1404
Planning &
Natural Resources
Phone: 952.227.1130
Fax: 952.227.1110
Public Works
7901 Park Place
Phone: 952.227.1300
Fax: 952.227.1310
Senior Center
Phone: 952.227.1125
Fax: 952.227.1110
Website
www.ci.chanhassen.mn.us
MEMORANDUM 01
TO: Paul Oehme, City Engineer/Director of Public Works 1
FROM: Alyson Fauske, Assistant City Engineer C, "► ,
DATE: April 25, 2016
SUBJECT: Reject the Bid for the Minnewashta Manor Reconstruction
Project 16-01
PROPOSED MOTION
"The City Council Rejects the Bid for the Minnewashta Manor Reconstruction
Project 16-01."
City Council approval requires a simple majority vote of those present.
DISCUSSION
The bid opening for this project was held on March 24, 2016. Only one bid was
submitted and was over the engineer's estimate and the budget for the project. The
attached letter from the city's engineering consultant summarizes the results and
reasons for the pricing and number of bidders.
Staff did consider rebidding the project; however, due to the amount of time it would
take to reject the bids, re -advertise, and get approvals, it was decided to postpone the
project. If the project was rebid, the project work would not start until July and most
likely not be completed this year. Due to the late start on the project, the uncertainty
if the city would receive any better bids, and the inconvenience this would have on
the affected residents, staff is recommending the project be delayed until the summer
of 2017.
The proposed revised project schedule is as follows:
• December, 2016: Advertise for bids
• January, 2017: Bid opening
• January/February, 2017: Accept bids/Award Contract/Hold assessment hearing
ATTACHMENT
Letter from WSB & Associates dated April 8, 2016.
c: Kevin Kawlewski, WSB & Associates
Valley Paving, Inc.
G:\ENG\PUBLIC\_2016 PROJECTS\16-01 Street and Utility Reconstruction\Communication\20160425 reject bids.doc
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
DATE: April 25, 2016 RESOLUTION NO: 2016 -XX
MOTION BY:
SECONDED BY:
A RESOLUTION REJECTING BID AND AUTHORIZE RE -ADVERTISING
FOR THE 2016 STREET RECONSTRUCTION PROJECT NO. 16-01
WHEREAS, one bid was received, opened and tabulated for the 2016 Street Reconstruction
Project No. 16-01.
WHEREAS, the bid, submitted by Valley Paving, was over the engineer's estimate and the
budget for the project.
WHEREAS, due to the amount of time it would take to reject the bid, re -advertise, and get
approvals, it was decided to postpone the project. If the project was rebid, the project work would
not start until July and most likely not be completed this year; and
AND WHEREAS, due to the late start on the project, the uncertainty if the City would
receive any better bids, and the inconvenience this would have on the affected residents, staff is
recommending the project be delayed until the summer of 2017.
NOW THEREFORE, BE IT RESOLVED by the Chanhassen City Council:
1. The mayor and clerk are hereby authorized and directed to reject the bid received on March 24,
2016 and re -advertise in December, 2016 and award bid in January/February, 2017 for the
2016 Street Reconstruction Project No. 16-01.
Passed and adopted by the Chanhassen City Council this 25th day of April, 2016.
ATTEST:
Todd Gerhardt, City Manager
Denny Laufenburger, Mayor
YES NO ABSENT
A
W,SB
701 Xenia Avenue South
Suite 300
Minneapolis, MN 55416
Tel: 763-541-4800
Fax: 763-541-1700
April 8, 2016
Honorable Mayor and City Council
City of Chanhassen
7700 Market Boulevard
P.O. Box 147
Chanhassen, MN 55317
Re: 2016 Street Improvement Project
City Project No. 16-01
City of Chanhassen, MN
WSB Project No. 1694-680
Dear Mayor and Council Members:
Bids were received for the above -referenced project on Thursday, March 24, 2016, and were opened
and read aloud. One bid was received. The bid was checked for mathematical accuracy and tabulated.
Please find enclosed the bid tabulation indicating Valley Paving, Inc., Shakopee, Minnesota, as the low
bidder with a grand total bid amount of $3,117,255.61. The Engineer's Estimate for the project was
$2,893,427.50.
Based on discussions with contractors regarding the project, there were a few factors that were
identified in the number of bidders and the prices received as follows:
Multiple contractors indicated that they had large amounts of work already under contract with
similar construction time frames which would make it difficult to complete the project as
specified.
One contractor chose not to bid the project because they were unable to obtain quotes from
any pipe contractors.
• There was concern regarding the availability of locations close to the project that would be
willing to take the amount of soil required to be exported from the site.
Due to the fact that only one bid was received, staff has discussed the possibility of rejecting the current
bid and re -bidding the project for construction in 2017. The public hearing was held on January 29,
2016. The City has one year to get the project under award from the time the project was ordered by
the Council. The intent would be to re -bid the project with the bid opening in December to attract more
bidders and hopefully receive lower pricing on the project. By opening bids in December, it will give the
City the time to advertise for the assessment hearing and award a contract within the one-year time
frame without having to conduct a second public improvement hearing.
Equal Opportunity Employer
wsbeng.com
K:101694-6801AdminlConstruction Admin11694-680 CST LTR RECMMDM-h.cc-040816-signed.docx
Honorable Mayor and City Council
April 8, 2016
Page 2
Based on the preceding discussion, it is our recommendation to: 1) reject the bids received for the
proposed 2016 Street Improvement Project, and 2) re -bid the project in December of this year.
If you have any questions, please contact me at 763-512-5257.
Sincerely,
WSB & Associates, Inc.
Eric Eckman, PE
Project Manager
Enclosure
cc: Paul Oehme, City of Chanhassen
Alyson Fauske, City of Chanhassen
Kevin Kawlewski, WSB & Associates, Inc.
srb
K: X01694-680�Admin�Construction Admin�1694-680 CST LTR RECMMDTN-hmcc-040816-signed.d—