00-0443R

RESOLUTION AWARDING CONTRACT TO LETOURNEAU AND SONS, INC., FOR SANITARY SEWER, WATER MAIN AND GAS MAIN EXTENSIONS AT BOULEVARD TERRACE, IN THE AMOUNT OF $108,915.

BY COUNCILOR ECKENBERG:

RESOLVED, that Letourneau and Sons, Inc., be and hereby is awarded a contract for construction of sanitary sewer, water main and gas main extensions at Boulevard Terrace first addition for the water and gas divisions in accordance with specifications on its low specification bid of $108,915, terms net 30, FOB job site, $104,558.40 payable out of Water Fund 510, Dept./Agency 900, Organization 0505, Object 5533 and $4,356.60 payable out of Gas Fund 520, Dept./Agency 900, Organization 0505, Object 5533.


STATEMENT OF PURPOSE:  This resolution will authorize the construction of 8" sanitary sewer main, 6" water main and 2" gas main extensions to serve Boulevard Terrace First Addition by Letourneau and Sons for $108,915 to be paid from water and gas funds, public works and utilities department, capital improvements-revenue.  George Hovland petitioned for water and gas main extensions to serve Lots 1 through 5 of Boulevard Terrace First Addition and a sanitary sewer main extensions to serve Lots 1 through 6.  Kenneth L. Kaylor has purchased Lot 1 since the petition was submitted.  These two property owners are paying for 92 percent of the cost of the improvements with the balance being a fee-in-lieu-of-assessment due against Lot 6 for sewer when that lot is built on.  Both property owners have signed waiver agreements which combine the three projects, waive procedural formalities and allow for 15 year payment of the assessments.  Letourneau and Sons, Inc., was the lowest of the three companies who responded.  The estimated budget amount for this project is $115,000. Bid No. 00-0549; Job Nos. 2576, 2577, 9050SA98
 
Tabulation of bids received June 1, 2000:
Letourneau and Sons, Duluth, MN $108,915
Viele Contracting, Duluth, MN $117,912
Northland Constructors, Duluth, MN $152,196