1a Award Bid for Lake Lucy Road Project 98-1
CITY OF
CBANHASSEN
JO City Center Drive, PO Box 141
Chanhassen, Minnesota 55311
Phone 612.937.1900
General Fax 612.937.5139
Engineering Fax 612.937.9152
?ublic Safety Fax 612.934.2524
~b www.ci.chanhassen.mn.us
fa..,
MEMORANDUM
TO:
Don Ashworth, City Manager
Anita L. Benson, City Engineer ~
FROM:
DATE:
July 8, 1998
SUBJ:
Approve A ward of Bid for Lake Lucy Road Project No. 98-1
On Tuesday, July 7, 1998, bids were received and opened for the above-referenced
project. This project will complete the segment of Lake Lucy Road between the
Woodridge Heights development and Brenden Pond development. Two bids were
received for the project with the low bidder being S. M. Hentges & Sons, Inc. at
$149,767.50. The only other bid received was from Midwest Asphalt Corporation
at a total price of $195,010.70. The engineer's estimate for the project was
$106,076.00. The low bid for the project of $149,767.50 represents a 41 % cost
increase based on the engineer's estimate.
The bids reflect increased costs due to the small size of the project and also a non-
competitive bidding environment as only two bids were received on the project.
Upon analyzing the bids received, it is apparent that the bidders did not have an
accurate understanding of the work involved for the earthwork bid items. These
items account for approximately 30% of the costs above the engineer's estimate.
Therefore, staff recommends rejecting all bids for this project and further requests
that Council reauthorize advertising for bids. The award of bid would then be
rescheduled for the August 10, 1998 City Council meeting.
c: Dave Hempel, Assistant City Engineer
Eugene Anderson, RCM
Dave Gestach & Lee Paulson, Gestach Paulson Construction
g:'a1g1Jgblic\98-1\awm'd bids.doc
~e City of Chanhassen. A growing community with clean lakes, quality schools, a channing downtown, thriving businesses, and beautifUl parks. A great place to live, work, and play.