1995-06-12 - Laserfiche WebLink

Home Browse Search

I I I Council Meeting Minutes June 12, 1995 Page 5 Council Business. continued City Engineer Les Proper presented the bids for the Silver Lake Road Reconstruction. Four bids were opened and C. S. McCrossan submitted the low bid in the amount of $4,297,199.46, which was 12.8% above the engineer's estimate of $3,807,989.80. Proper identified that the increases came from portions associated with street lighting ($287,100 to $378,000); and the Windsor Lane traffic signal, ornamental pavers, and 3rd St./Wexford Heights signal ($89,890 to $163,753). The Windsor Lane traffic signal was the only signal which didn't meet signal warrants and will need to be paid from City funds. The ornamental pavers are a City cost and not eligible for MSA funding. Based on our current 5-year street and sidewalk construction program, we will overspend our available MSA funds for several future years. We can fund all of the programmed projects by advancing encumbering future MSA funds, which will require an interim City loan, or we can postpone lower priority projects. McCrossan is a large and reputable contractor and staff recommends award of the bid. Benke asked for clarification of the lighting and signal costs. Wayne Leonard, Ramsey County, acknowledged the increased costs were a surprise, but feels they are not unique to the project. The majority of the increases appear to be associated with the City cost participation items for traffic control and mobilization, however, the increases appear to be across the board. Leonard questioned if discussing these costs with the utility company would be of any benefit. Benke asked if the project could be performed in a one year period. Leonard feels that after next week's meeting with the utility company and the contractor, the schedule should become clearer. Samuelson asked the actual City cost. Proper said the City MSA total is $791,743, and the City cost total is $188,336. These amounts include engineering costs and ROW acquisition. Williams noted concern of overspending MSA funds, and feels uncomfortable borrowing against it. Proper said one option is to postpone lower priority projects such as sidewalk and overlay improvements. Another option is the pending MSA rule change which allows a City to advance one year allotment from the MSA pool of unexpended money, which in this case would be $360,000. Williams does not favor borrowing against the future, and asked if payments could be split over two years. Leonard feels this could be done, but State funds would be encumbered for the contract rather than City funds and there could be an issue with emergency funding. Benke noted that New Brighton has carried an MSA surplus for many years which other cities have used, and this appears to be a way to fund the cash flow. Fulton acknowledged that some projects could be delayed, and utilizing the advance encumbrance of MSA monies is one option. Samuelson asked if the contract allows for increases if the project required two years. Proper said the bid involves 50 separate items and some of those quantities may vary, but unit prices will not change. The final amount may be slightly higher or lower depending upon final quantities. If there are any foreseen problems, staff would come to Council with a change order. Leonard is confident the bid is accurate. Council Business Silver Lake Road Reconstruction Bid Award Report 95-102 Resolution 95-049