DISCLAIMER

 

05-0648R                                                          REPLACEMENT


RESOLUTION AWARDING CONTRACT TO NELS NELSON & SONS, INC., FOR CONSTRUCTION OF 44TH AVENUE WEST FROM GRAND AVENUE TO 398 FEET SOUTHERLY IN THE AMOUNT OF $136,911.01.

BY COUNCILOR STOVER:

     RESOLVED, that Nels Nelson & Sons, Inc., be and hereby is awarded a contract for construction of 44th Avenue West from Grand Avenue to 398 feet southerly for the engineering division in accordance with specifications on its low specification bid of $136,911.01 terms net 30, FOB job site, payable out of Special Assessment Fund 0410, Department/Agency 038, Object 5530, and Storm water Fund 0535, Department/Agency 500, Organization 1905, Object 5535, Project SA2005-0493TR.


STATEMENT OF PURPOSE: This resolution will authorize the construction of a permanent 28 foot wide street with turnaround, storm sewer and sidewalk in 44th Avenue West from Grand Avenue to approximately 398 feet southerly adjacent to Lots 8 and 16, Block 70 and Lots 1 and 9, Block 71, in the town of Oneota except railway right-of-way and adjacent to vacated Second Street. This street improvement will provide access to the new Tool Crib building being constructed and scheduled for opening in January 2006. The construction will be performed by Nels Nelson & Sons, Inc., for $136,911.01 with $106,534.76 to be paid from the special assessments fund, special assessment contracts, capital improvements and $30,376.25 to be paid from the stormwater fund, public works and utilities, capital improvements, noncapital improvements. 100 percent of the abutting property owners owning 100 percent of the property to be assessed petitioned for a street and storm sewer improvement. The assessed property owners waived their right to a public hearing and are paying for 100 percent of the cost of the improvements except for 50 percent of the storm sewer relocation cost which is being paid for by the stormwater fund. The adjacent property owners will be permitted up to 15 years to pay the assessment. Nels Nelson & Sons, Inc., was the lowest of the two companies who responded. The low bid was less than the engineer’s estimate of $143,376.50. The preliminary construction cost estimate for the special assessment fund was $85,000. However, during excavation for the Tool Crib foundation it was discovered that a major storm sewer runs across this property and encroached on the proposed foundation. This situation was resolved by relocating this storm sewer in the new 44th Avenue West street right-of-way as part of this project. This existing storm sewer was apparently a private storm sewer but does serve as a critical link in the city’s stormwater system serving the Denfeld area. An agreement has been reached with the benefiting property owners whereby the stormwater fund will pay for 50 percent of this storm sewer relocation cost and the benefiting property owners will pay for the other 50 percent of this storm sewer relocation cost through their special assessment. The city will be connecting this new storm sewer to the storm sewer in 44th Avenue West above Grand Avenue as part of the Grand Avenue construction work in 2006. Bid No. 05-0661; Job No. SA2005-0493TR


Tabulation of bids received September 26, 2005

Nels Nelson & Sons, Inc., Cloquet, MN

$136,911.01

Phil Randall Sewer, Cromwell, MN

$183,598.30