R99-110 ACCEPTING THE BID AND AUTHORIZING A CONTRACT

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Because of the expected cost,the needed major drainage improvements could not be done as part of the City's annual miscellaneous storm sewer improvements which is intended for projects of a smaller scale and cost. A separate capital project was developed by staff and approved by the City Council. The plans and specifications were prepared by the Engineering Division. The design process took longer than anticipated because of complexity of the project and the loss of a staff engineer. Bids were received and opened on May 27, 1999. The results (copy of the bid tabulation is attached) of the letting are as follows: Compared to Engineer's Est. Bidder Bid Price Over(-Under� Engineer's Estimate $ 482,606.00 -- - Prairieland Construction, Inc. $ 357,028.00 (26.02) Burdick Heating & Plumbing Co., Inc. $ 383,170.00 (20.60) Entler Excavating Co., Inc. $ 385,895.00 (20.04) McIntire & Company Contractors $ 434,248.95 (10.02) Bodine Services, Inc. $ 456,623.60 ( 5.38) Staffls review of the bids after the opening resulted in two issues that needed to be answered to staff's satisfaction before proceeding with its recommendation to the City Council. The first was that the apparent low bidder had not previously worked for the City. The second question was whether the low bidder made an error in its unit price for asphalt repair at $5.00 per square yard. Prairieland was advised of these two questions by staff. A post qualification form was sent to Prairieland to complete and return to the City. The purpose of this form is to obtain information on the firm's ability to capably perform the work and complete the project. Prairieland submitted the completed form and staff checked its listed references. Staffls inquiries of the references found no cause to reject Prairieland's bid and consider awarding the contract to the next lowest bidder. Prairieland's response to the matter of its unit price for the asphalt repair was that its estimator had made an error. The unit price was supposed to have been $25.00 per square yard. If an adjustment were made for this error, Prairieland's bid amount is increased to $374,014.00. It would have remained the low bidder. Staff asked Prairieland if it would honor the original unit price that was bid and it has, in writing, agreed to honor the bid amount of$5.00 per square yard. Funding for this project will come from the General Capital Fund. It is recommended by staff that the City Council approve the attached resolution awarding a contract for the Drainage Area 18 Improvements - Greenridge Drive, City Project 9745, to Prairieland Construction, Inc. as the lowest responsive, responsible bidder in the amount of $357,028.00 and that the Mayor be authorized to execute the contract.