BY COUNCILOR JOHNSON:
RESOLVED, that the proper city officials are hereby authorized to enter into a contract with Viele Contracting, Inc., for the construction of a watermain and sanitary sewer in West 12th Street from 90 feet southwesterly of Harbor Highlands Drive to 160 feet southwesterly of Harbor Highlands Drive for the public works and utilities division in accordance with its low specification bid of $57,174.80, payable out of Special Assessment Fund 410, Department/Agency 038, Object 5530, City Project No. 0669SN/WA.
STATEMENT OF PURPOSE: This resolution will authorize the construction of a water main extension and a sanitary sewer extension to serve Lots 26, 28, 30 and 32, Block 171, Duluth Proper Third Division, by Viele Contracting, Inc., on West 12th Street for $57,174.80, to be paid from the special assessment fund. This property owner petitioned for watermain and sanitary sewer extensions and owns 100 percent of the property to be assessed. The property owner is paying for 100 percent of the cost of the improvements and waived his right to a public hearing. Viele Contracting, Inc., was the lowest bidder of the five companies that responded. The low bid was 12 percent above the engineer’s estimate of $51,000, but was significantly higher than the preliminary construction cost estimate of $40,000 due to the large amount of street restoration required in the final design. However, the property owner has indicated that he will provide a letter asking the city to proceed with this project.