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• , ' . Page 2 <br /> The receipt of one bid and it being in excess of 10 percent of the Engineer's estimate was <br /> noted by City staff as it relates to the City obtaining competitive bids for its work. The review of <br /> the unit prices noted, as expected, asphalt prices were higher than estimated given the effect of <br /> recent oil price increases. The two primary bid items involving asphalt were about $13,000 more <br /> than the Engineer's estimate or approximately 60 percent of the difference between Dunn's bid <br /> and the Engineer's estimate. The remaining difference was generally spread through the <br /> remaining 21 bid items. The extent that oil prices may have affected these other bid items is not <br /> known, but is considered to be a factor. Other factors may have been the limited quantity of <br /> work for some items and work area constraints affecting the contractor's productivity. <br /> City staff is recommending that the City proceed with this project. It is not expected that <br /> asphalt paving related prices are going to see any significant decrease this construction season. <br /> There is the need to proceed with this project to ensure the coordination with the intersection <br /> improvements at 21 st Street and Locus Street. <br /> Funding far this project will be from the City's Capital Improvements Fund. <br /> It is recommended by staff that the City Council approve the attached resolution awarding <br /> the contract to Dunn Company for the 21 st Street Reconstruction and Overlay Improvement - <br /> Condit Street to Garfield Avenue, City Project Number 9851B, at its low bid of$206,459.83, and <br /> that the Mayor be authorized to execute the contract. <br /> City staff will be available to answer any questions that the Council may have at the <br /> meeting. <br /> attach: 2 <br /> cc: Phillip Wilhelm, Municipal Services Manager <br /> Dunn Company <br />