R94-132 ACCEPTING THE BID AND AUTHORIZING A CONTRACT

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� l^� I�. ' PUBLIC WORKS MEMORANDUM NO. 94-50 September 1, 1994 MEMORANDUM TO: Honorable Mayor and City Council FROM: Daniel R Sommerfeldt, Acting City Manager George Weaver,Director of Community Development Bruce A. McNabb, Director of Public Works �„A�.> ra�-- SUBJECT: Prairie Street Improvements CP.- 9420 Bids for the Prairie Street Improvement were received and opened on August 8, 1994. Three bids were received. The results of the letting are as follows: Contractor Bid Price Engineers Estimate % over(under) Engineer's Estimate $207,094.09 ----- Otto Baum& Sons $263,940.32 25.0 Christy-Foltz, Inc. $304,692.57 45.3 Mid-States General &Mech. Contract. Corp. $312,917.60 46.2 Note: Minor extension enors were discovered in two of the bids. Corrected totals are reflected above. $100,000 was initially budgeted for this project in the '94 - '95 Budget. This amount was increased by Council action to $154,901 plus 15% for contingencies. Authorization to proceed with design was given by Resolution R 94-73. At completion of the plans a final engineer's estimate was prepared which showed the cost of the project to be $207,094.09. With traffic signals and owners contribution removed, this figure compared favorably with the previous estimate and bids were requested. The low bidder Otto Baum was 25% over the engineer's estimate. A comparison was made between the '94 prices,the engineer's estimate and the '91 prices received for Landmark Mall. The engineer's estimate reflected the '91 prices not adjusted for inflation. Adjusting this for inflation of l2% (Illinois Municipal Index '92 through '94) the engineer's estimate should be revised to $231,945.38. Otto Baum's price is 13% over this revised estimate. In light of the fact the next bidder was 15% higher than Otto Baum, it is unlikely a substantial savings would be realized without a redesign.