Title
RESOLUTION AUTHORIZING AN AMENDMENT TO THE CONTRACT WITH TKDA FOR PROFESSIONAL SERVICES INCREASING THE AMOUNT PAYABLE THEREUNDER, AWARDING A CONTRACT TO HIBBING EXCAVATING, INC., AND ACCEPTING REIMBURSEMENT OF SAID CONTRACTS FROM DEDA SUBJECT TO DEDA AUTHORIZATION OF SUCH REIMBURSEMENT, ALL RELATED TO THE 59TH AVENUE WEST STREET AND UTILITY IMPROVEMENT PROJECT.
Body
CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to enter into an amendment to contract no. 22637 with TKDA for the 59th Avenue West Street and Utility Improvement Project increasing the amount payable by $66,167 for a total amount payable of $92,067, payable from Fund 530-500-1905-5533 (Sanitary Sewer Fund, Public Works and Utilities, Capital, Capital Improvements - Revenue).
FURTHER RESOLVED, that the proper city officials are hereby authorized to enter into a contract with Hibbing Excavating, Inc. for the 59th Avenue West Street and Utility Improvement Project in the amount of $866,781, payable from Fund 530-500-1905-5533 (Sanitary Sewer Fund, Public Works and Utilities, Capital, Capital Improvements - Revenue), city project no. 1487.
FURTHER RESOLVED, that the authorization to enter into the TKDA contract and the Hibbing Excavating, Inc. contract is subject to the Duluth Economic Development Authority (“DEDA”) authorizing reimbursement by resolution of actual city costs under these contracts up to the amount of $1,170,000.
FURTHER RESOLVED, that pursuant to the requirements of Resolution 10-0229, DEDA’s authorization by resolution to reimburse the city for the actual costs of the TKDA contract and the Hibbing Excavating, Inc. contract, is hereby approved.
FURTHER RESOLVED, that the city hereby accepts reimbursement from DEDA for the actual costs of the TKDA contract and the Hibbing Excavating, Inc. contract payable into Fund 530-500-1900-4670 (Sanitary Sewer Fund, Public Works and Utilities, Public Works Director’s Office, Share of Improvements) subject to DEDA authorizing reimbursement of the same by resolution.
FURTHER RESOLVED, that pursuant to the requirements of Resolution 09-0324, DEDA;s authorization to reimburse the city of the actual costs of the TKDA contract and the Hibbing Excavating, Inc. contract, when approved by DEDA, is hereby approved.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes an amendment to the contract with TKDA for the 59th Avenue West Street and Utility Improvement Project increasing the amount by $66,167 for a new total of $92,067 (original contract no. 22637).
It also authorizes a contract with Hibbing Excavating, Inc. for the 59th Avenue West Street and Utility Improvement Project in the amount of $866,781. Hibbing Excavating, Inc. was the lowest responsible bidder of the eight companies that responded. The engineer’s estimate was $900,000 (city project no. 1487, requisition no. 15-0658).
|
TABULATION OF BIDS RECEIVED NOVEMBER 19, 2015 |
|
Hibbing Excavating, Inc. |
Hibbing, MN |
$866,781.00 |
|
Utility Systems of America, Inc. |
Eveleth, MN |
$937,487.00 |
|
Meyer Contracting |
Maple Grove, MN |
$1,015,043.79 |
|
Veit & Co., Inc. |
Rogers, MN |
$1,076,494.32 |
|
Northland Constructors of Duluth, LLC |
Duluth, MN |
$1,088,170.84 |
|
Ulland Brothers, Inc. |
Carlton, MN |
$1,114,334.43 |
|
A-1 Excavating, Inc. |
Bloomer, WI |
$1,308,032.20 |
|
RJS Construction Group, LLC |
Superior, WI |
$1,470,000.00 |
The authorization to enter into these contracts is subject to DEDA’s authorization of reimbursement of actual city costs under these contracts up to the amount of $1,170,000. This is an allowable expenditure of DEDA’s TIF District 7 due to the economic development benefit that will be derived by businesses located at or near this project. Any cost overruns above $1,170,000 will be the responsibility of the city’s Permanent Improvement Fund and DEDA funds. The resolution also obtains the city council’s approval of DEDA’s reimbursement to the city as is required pursuant to Paragraph 19 of the amended DEDA Enabling Legislation, Resolution 10-0229.