R2006-133 ACCEPTING THE BID AND AUTHORIZING A CONTRACT

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1 - COUNCIL COMMUNICATION FORM Engineering & Infrastructure Memorandum I NO. 2006- 54 ' August 29, 2006 I TO: Honorable Mayor Osborne and City Council FROM: Steve Gar City Manager Dane Brag , sistant City Manager for Economic & Urban Developmen Matthew ell, P.E., Acting Director of Engineering and Infrastructu SUBJECT: West Main Street Improvement, City Project 05-25A SUMMARY RECOMMENDATION: It is recommended by staff that the City Council approve the attached resolution awarding the contract for West Main Street Improvement, City Project 05-25A, to Otto Baum Company, Inc. as the lowest, responsible bidder with a low bid in the amount of $2,701,352.25, and that the Mayor be authorized to execute the contract, and the City Clerk to attest. BACKGROUND: On March 6, 2006, the City Council authorized an agreement with Blank, Wesselink, Cook & Associates, Inc. (BWC) for the preparation of final design plans and specifications for proposed West Main Street Improvements. On June 19, 2006, the City Council authorized an amendment to ' the design contract to prepare a concrete paver (brick) pavement option for West Main Street. Accordingly bids were solicited for both asphalt and brick pavements. The project plans and specifications were prepared by BWC and Massie, Massie &Associates with input from Engineering Division and Economic and Urban Development Department staff. The project was advertised July 21, 2006, and bids were opened on August 14, 2006. The results of both asphalt and concrete paver options for the letting are as follows: Compared to Compared to Asphalt Engineer's Est. Brick Engineer's Est. Bidder Bid Price Over(-Under) Bid Price Over(-Under) Engineer's Estimate $1,765,674.31 ---- $2,381,790.31 ---- Otto Baum Company, Inc. $2,151,388.78 21.85 % $2,701,352.25 13.42 % Christy-Foltz, Inc. $2,433,193.57 37.81 % $2,959,372.62 24.25 % Project Cosfs and Funding Otto Baum Company, Inc. provided the low bid for both the asphalt and brick options. All bids exceeded the engineer's estimate. An analysis of the bids received indicates significant increases in bids for storm sewer work (40% high) and street removal work (80% high) when compared to similar work in recent years. This year high fuel costs have played a significant role in material and equipment costs. After reviewing the bids with the low bidder, it is believed that the bids received likely reflect the current market rate for the work expected. Insufficient funds are available in the Letter of Credit Project Fund for the proposed work with the bids received.