2. Award Bid - 2010 Kalispell Street Improvement ProjectREPORT TO: Mayor and City Council
FROM: James C. Hansz, P.E., Director of Public Works
SUBJECT: Bid Award — 2010 Kalispell Street Improvement Project (Stimulus)
MEETING DATE: 7 June 2010
BACKGROUND: The City received from the State of Montana $339,549.00 in Federal Stimulus
Program funding to be used for road improvements in Kalispell. A project to improve 11 PhStreet from 7`h
Avenue East to 8 h Avenue West was prepared to use these funds. In addition, based on guidance from the
State, additional improvement of 3rd Avenue East North from Idaho to Center Street was included in the
project scope in order to ensure the total value of work to be done would equal or exceed the amount of
stimulus funding provided. This was necessary in order to ensure completed expenditure of the awarded
funds and to avoid the obligation to reimburse the unused funds to the State. Three bids for the Kalispell
Street Improvement Project were received and opened on May 25"h. The low bid was submitted by LHC
Inc. of Kalispell. The total amount bid for Schedule 1 Qrd Ave. EN) and Schedule 2 (11 th Street) is
$448,564.80. All bids exceeded the Project Engineer's estimate of $3 80,156.83 and reflected significantly
higher unit costs than have been experienced over the past two years. The Finance Director has conf nned
that available funds within the Street Maintenance fund and the Stimulus Project account are adequate for
this project. The Project Manager's bid analysis and award recommendation is attached.
RECOMMENDATION: Award the 2010 Kalispell Street Improvement Project to the LHC, Inc.
ACTION REQUESTED: AT MEETING OF DUNE 7'-H — MOTION TO AWARD THE 2010
KALISPELL STREET I MINPROVEMENT PROJECT TO LHC, INC. of KALISPELL.
FISCAL EFFECTS: Expenditure of Street Maintenance funds and Stimulus Project funds totaling
$4485564.80.
ALTERNATIVES: As suggested by the City Council
espec ,miGmi
J - ansz,
erector of Public Works l C4 ngineer
Attachment: Project Manager's bid analysis and recommendation
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Jane Howington
City Manager
May 27, 2010
To: Jaynes C. Hansz, PE, Di ctor of Public works/City Engineer
From.: Fred Zavodn , j ct
Re: Kalispell Street I nprov m eject (Stimulus Allocation) - Bid Analysis and Recommendation
The City of Kalispell Street Improvement Project consists of asphalt milling, asphalt overlay placement,
storm drainage improvements, and handicapped ramp installation on Third Ave. EN between E. Idaho St.
and E. Center St. and Eleventh Street between Eighth Ave. W. and Seventh Ave. E.
Bids for The City of Kalispell Street Improvement Proj ect were opened on Tuesday, May 25, 2010. Bids
were received from LHC Inc., Schellinger Contracting, and Knife River. All bids were in order and
contained the required Bid Bond. The bid analysis is as follows:
CONTRACTOR BID SCHEDULE 1
THIRD AVE EN
LHC INC. $ 971X3.09
SCHELLINGER $ 1075524.75
KNIFE RIVER $ 118,247.80
MY ESTIMATE $ 75,991.15
BID SCHEDULE 2 TOTAL BID
ELEVENTH ST
$ 350,591.71
$ 366,951.75
$ 44% 147.15
$ 3 04,165.E 8
$ 448,564.80
$ 474,476.50
$ 567,394.95
$ 380,156.83
The Street Maintenance priority (Asphalt overlay) for 2010 is Eleventh Street from Eighth Ave. W. to
Seventh Ave. E. Therefore, the focus of the Stimulus Allocation Bid was the upgrading of Eleventh
Street. Additionally, an Asphalt overlay of Third Ave. EN between E. Idaho St. and E. Center St. was
included in the bid to assure the total bid amount would exceed our Stimulus Allocation as the City has
experienced a favorable bidding trend for the past two years. Unfortunately, this has changed, as is
evident with the current bids. My estimate for both Bid Schedules amounted to $ 380,156.83. The low Bid
submitted by LHC Inc. exceeds my estimate by $68,407.97.
Many bid items were priced at multiples of last year's costs, from which my project estimate was
established. The bid price increases are across the construction spectrum from Traffic Control (+400%),
Sidewalk Removal (+250%), Curb Installation (+16%), Storm Drain Inlet (+180%), Asphalt Tack Coat
(+400%). Asphalt Overlay (+15%), to Double Yellow Lane Striping (+380%) and this is the same in all
the contractor's bids.
Sufficient funds are available in the Stimulus Allocation Funding ($ 339,549.00) and the Pavement
Maintenance line item ($ 109,015.80) to support this project. The budget status has been reviewed by the
finance director who concurs that sufficient funding is available for this project.
Therefore, I recommend award of Bid Schedule 1 and Bid Schedule 2 for the City of Kalispell Street
Improvement Project totaling $ 448,564.80 to LHC Inc.
Please note: It is imperative that construction of this project begin as soon as possible in order to avoid a
requirement to reimburse unused Stimulus Allocation Funding back to the State general fund. All project
construction and all mandatory reporting requirements must be completed and all Stimulus Funding must
be distributed on or before September 30, 2010 to avoid the reimbursement penalty.