CITY OF WOODBURY, MINNESOTA

Office of City Administrator

Council Letter No. 05 –

April 13, 2005

At its February 23, 2005 meeting the City Council approved the plans and specifications and established a bid date for the Lake Road Utility and Street Improvements within Stonemill Farms 3^rd Addition and from Cottage Grove Drive to ¼ Mile West. Bids for the project were received on March 24, 2005.

It is recommended the Council adopt the attached resolution awarding the construction contract to Nodland Construction in the amount of $860,413.13 plus Alternate Bid 1A of $15,000.00 for a total contract price of $875,413.13 for the Lake Road Utility and Street Improvements within Stonemill Farms 3^rd Addition and from Cottage Grove Drive to ¼ Mile West.

The estimated construction cost of this project based on the low bid is $475,084.90. The estimated project cost, including 27% engineering and administration costs is $603,357.82. The project will be funded by two sources:

The project cost is within the estimated amount provided for in the Phase 1 Perimeter Roadway Fund. Developments within the Phase 1 MUSA expansion area have and are contributing to the fund based upon Perimeter Roadway Funding negotiations and Developer Agreements. Newland Development will provide an estimated additional $135,000 toward this project because a portion of this project includes construction work on Settlers Ridge Parkway originally identified for private construction. The developer has agreed to apply the non-expended funds for Settlers Ridge Parkway to this project.

The estimated construction cost of this project based on the low bid is $400,328.23. This includes the base bid for the work plus Alternate 1A. This alternate is for retaining wall work along a portion of the project. The estimated project cost, including 27% engineering and administration costs, is $508,146.85. The project will be funded by three sources:

The project cost is within the estimated amount provided for in the Phase 1 Perimeter Roadway Fund. Therefore, the project may be considered to be within budget since the roadway improvement portion of the project is wholly funded by the Perimeter Roadway Fund. Developments within Phase 1 MUSA expansion area have and are contributing to the fund based upon Perimeter Roadway Funding negotiations and Developer Agreements. Area and connection charges to developing property will generate money to reimburse the area and connection charge funds. The Baileys Arbor Addition lateral water main assessment will be assigned per existing and future developer agreements as outlined in the Baileys Arbor Addition Preliminary Report.

Bids for the Lake Road Utility and Street Improvements within Stonemill Farms 3^rd Addition and from Cottage Grove Drive to ¼ Mile West were received at 1:00 p.m. on Thursday, March 24, 2005 at City Hall. Attached is a copy of the bid tabulation for the bids, which were received.

Bid Review - The initial cost estimate from the preliminary engineering report for the combined project was $954,200.00. The final construction cost estimate based on the plans and specifications was $950,800 and including 27% engineering, legal and administrative expense is $1,207,500.00. A total of four bids were received for this project.

The low bid of $860,413.13 plus Alternate Bid 1A of $15,000.00 was submitted by Nodland Construction of Alexandria, Minnesota. The total contract price is therefore $875,413.13. A bid bond for five percent (5%) of the bid amount was included with the bid. The bid has been reviewed and was found to be in order.

Nodland Construction has previously performed satisfactory work in Woodbury.