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C. Award Bid - Center Street and First Avenue East Traffic Signal InstallationMEMORANDUM March 10, 1998 To: Clarence Krepps, City Manager From: Jim Hansz, Director of Public 'A' ks Subject: 1" Ave. EJCenter Street Traffic Signal bid recom Lendation On March 6t° the City received a single bid for this project from Montana Lines. Their bid is $118,885.25 for installation of this improvement. The City is to supply the controller cabinet. The cost of this cabinet is estimated at 56,153.00 based on the purchase price for the similar unit used for the 5`h Ave. WJCenter project. The total cost of this signal is estimated to be $125,038.25. This is $15,0338.25 more than the $110,000.00 budgeted in the FY 97/98 TIF budget. (The amount originally estimated two years ago was $120,000.00) I believe this additional cost will not be a problem and that overall project costs should be well within the total budget available for the project. This is due to significant savings in engineering costs. As you know City staff have been doing the greatest share of engineering for this project. Budget available for the phase one engineering is 585,856.00 and to date we have spent only $13,700.00 for engineering services beyond our capabilities; $8,800.00 for signal design and $4,900.00 for electrical engineering of service reconnections in the alley. The total engineering budget for the entire alley utility undergrounding project is $222,679.00. Total expenditures for engineering should be well under the amount available. Therefore, I recommend award of this bid to Montana Lines based on their bid of $118,885.25. A copy of the engineer's analysis is attached. Post Office Box 1997 • Kalispell, Montana 59903-1997 Telephone (406) 758-7700 • FAX (406) 758-7758 �f J u O O O O ►- O f,1• C O to N N LL W O L J Z •- W W O Q O r ' � N d CC J LL Q f: T O a x 0 •- a a CL H U. U Z 06C9 O a F- w Z •- C J W Q U O K N ~ C j W LU W f- W d W I C7 e- Z U I Z t/f C 1 W W 6. 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O O oC 0 I- a < .r 1n o Vl v in \ N H W W O r U or O C W O 4. r M t O M • O Z N • Of t� O J W N 10 O 1- IL x a O oC r_ a ^ U u z r u z a u u u u a u n 11 O II O M N tD P O O J Q W U II o CD P s M M N O ^ a 11 If v N ti P !2 t� t- G. it If P N O O LU W u II W W 1- < II O 11 O M to 19 P If O r Z� O 1 N Z W N W tY Cl. 11 It \ Ol P N 11 II it 11 U a II 11 O CD O N to Z C 11 O O O N N w z < U 11 0 0 0 /n V1 N 7 H •-. 11 O O co co Z ce N O tY II •O Ir 10 co a u CO � o _ J jx W J ...1 11 11 e- a < u < o a o 0 0 z a II o 0 0 /- O < ID .-- U 11 O O O Z x O W .- = o rIDv v 1 a ii 1 c n u n w u ~ 11 11 tY N J D t19 11 Z ` 2 11 11 •-. p ad W U O Z H if II y ID p x Z •' V L Q II II O Z i O U t O 0 N at 11 W co L C U II in O CA)t Vf a O U W it Iw- J N t LU cc cc P U J < IA t J J •O J O it it x t J W W \ G M !- 11 11 N Vf t- t In (n N O Z II II J J t < •• a o 0 o p a Y 11 O W O F it co ID > cm x u u a iia J J c < < Y O O 11 If H F- O` z W II O O G C - H O 11 C 11 The Bid for the following items shall include all temporary or permanent equipment, materials, supplies, and labor necessary to construct the item in accordance with the Contract Documents. BASE BID CENTER STREET AND 1 ST AVENUE EAST TRAFFIC SIGNAL INSTALLATION ITEM NO. DESCRIPTION ESTIMATED QUANTITY UNIT UNIT PRICE TOTAL PRICE 101 Class M-4000 - concrete foundation 5.1 CY 102 Concrete pedestrian ramp, misc. concrete work 365 SF D 103 Conduit, 1-112", PVC 740 LF j �' DD tjr0 D • D 104 Conduit, 2, PVC 165 LF / . 5b 2312,150 105 Conduit, 2' Steel 510 LF 9.50 2 00 106 Pull --box, concrete, Type 1 8 EA 107 Pull -box, concrete, Type 11 4 EA 108 Cable copper, 15 AWG 14-600 v 1005 LF 109 Conductor copper, AWG 8-600 v 1330 LF , (00 qg , D O 110 Conductor copper, AWG 10-bare 675 LF 336.15 111 6-pr. No. 19 AM Communications cable 410 LF / , DD 41 D. o D 112 Install City supplied controller cabinet. pedestal Type P 1 EA 1 JD . Do D . DD 1 J 113 Service & control assembly, 40 amp 1 EA 1:z I"�r 00 J Z/ 5. 0 0 114 Photo -electric control 1 EA 2 00 -001 2 00. D D 115 Traffic signal (3-color, 1-way) 12' x 12' x 12' W/BP 13 EA 130 -0tCf y9O pO 116 Pedestrian signal, type 2 8 EA 40,0 117 Instal City supplied controller/ emergency pre-emption system 1 EA '790,A 0, DO 118 Signal standard 3-A-500-4 2 EA SIDD' 00 tD 2 DO . D O 119 Signal standard 2-A-500-4 1 EA 31 00.X 3 10 D . DO W'`4387'0251SPECS'00300.VW- Section 00300 - Page 4 of 10 1/16 - Jaruwy 22, 19% BASE BID - CONTINUED ITEM NO. DESCRIPTION ESTIMATED QUANTITY UNIT UNIT PRICE TOTAL PRICE 120 Signal standard 3-A-500-3 1 EA 4pp, Q0 4qZD J Q 0 121 Pre -formed loop detectors 6`x6' 18 EA 3p,00k, 74D. D D 122 Remove and salvage existing luminaires, poles, 6 foundations. 4 EA 38 0. oo 5 2 0, 00 123 Detector loop shielded cable 2285 LF Z 5 2 85 b . Z 124 Push-button, pedestrian 8 EA $ O. D D D. 0 0 125 Signs, sheet aluminum, reflective sheeting, type "B', Hi -Intensity 34.5 SF Flo .5o Gj IzI, 2 5- 126 Remove and salvage signs 5 EA 17, Do g5. 0,0 127 Pavement marking removal 1550 LF 128 Epoxy paint - arrows, legends, stop bars, and crosswalks 700 SF /0 • D D 1 D 0 6 fl I) 129 Epoxy paint - lane Ones 635 SF 5,20 3 0 2. 00 130 Construction traffic control 1 LS46!)0-bo 4Do0,00 131 Omitted 132 Omitted 133 Omitted 134 Mobilization/demobilization 1 LS gb 00.00 Sl, 00 • D 0 135 Taxes, bonds, insurance 1 LS / 4 p0-Ott 140 0 . C) Total Base Bid $ /18885.2s Price in Words: ©/[e )YUA p R6,,D C-i4tyT 5�L%h t W P fiGHT FllJ/iIDA?C-D IT y Fl VL A AN) Twer_A y r_l ve C(:!F/tlTS 1MVW7W5ZPECV0.WP- 1T11?197 -January 16, 1998 Section 00300 - Page 5 of 10 To: Clarence W. Krepps, City Manager From: Susan Moyer, PECDD Housing Manager Subject: Addendum to Bid Award Date: March 13, 1998 Since Lawrence Gallagher's March 11, 1998, regarding the proposed bid award to Swank Enterprises went out, a discrepancy has surfaced. Attached is a copy of a letter from Robert Meinhardt, Project Manager for Swank Enterprises, in which they acknowledge an $16,400 error on their bid amount. Taking into consideration they were low bidder by $43,331, the requested increase would still place their bid as the lowest by $26,932. We are also attaching a March 28, 1989 memorandum from the City Attorney in which he cites the legality for allowing a bid adjustment to another contract on the Southwest Project Bid. It is Glen Neier's opinion that the same basis exists in the current request from Swank Enterprises. Thus, staff is recommending to City Council that the actual bid award amount to Swank Enterprises be made at this time in the amount of $1,150,400. c:\Samaritan House\Bid Award #2 va 03-12-98 05:14PY FROM SWANK ENT. 756-8765 TO ARCHITECTS DESIGN P002/003 WAN E �"►�'`TE RPRi E S/ GENERAL roAs P.a Box 1OCXC 7 1410 WU1YC-Ff1$H STArwE RE>. K,AL 15 PF-L.1..^'r. 59 90 4 -3CCr? 404./75Z 5411 - FAX 7SG -a-rr.,5 12 March 1998 John Peterson Architects Design Group One Sunset Plata Kalispell, MT 59901 Re: Samaritan House Subject: Verification of aid DearJohn: This letter shall serve to respond to Frank's letter requesting verification of our bid for the above project. As I have discussed with you in your office, we confirm there was an adding error in our bid where we Inadvertently left out the cost of the sewer and water hook up fees required by Addendum #5. We also confirm the intention to use Diamond Plumbing which confirms a complete mechanical bide By copy of this letter and in accordance with FAR (Federal Acquisition Regulation) #14.407,3, Paragraph A, we request permission to correct the mistake. There is precedence in Federal contract law that allows for such position if: the revised bid does not change who was the low bidder, • the bidder produces certified documentary evidence the mistake occurred, • the revised bid still represents the best value for the Owner in the event the contractor is allowed to pull his bid due to the mistake. We are prepared to permit you or the Owner to review our original bid documents verifying the mistake occurred. We also offer the facts where we made an attempt to contact Mrs. Roxanne Swank in the bid opening room hopefully to correct our bid prior to closing. This can be verified by the fact you witnessed the proceedings. in closing, we are very excited about the project and apologize for any inconvenience this occurrence has caused_ We just don't want to start out $16,000 in the hole when there may be an opportunity to correct the mistake, 11l ILI 1V VV 1III VW -TI Ill! I I11Vl 111 L.V L kJ 1lLVI u(I 1'[1A 17V, `tUU (UU JLIUA 03-12-98 05:10M FROM SWANK ENT. 750-87H TO ARCHITECTS DESIGN P003/003 Any a istance you can render in this matter mould be most appreciated. Thank you. Very Truly Yours, SWANK ENTERPRISES r t 4- Robert C, Meinhardt Project Manager RGM/res 2 = = CITY OF �raIa 181 Drawer 1997 John Ed Kennedy, Jr. Kalispell, Montana Mayor 59903-1997 TO: Mayor, Sewer & Water Committee, Public Works Committee, Ken Hammer, Susan Moyer, Ros,57,91ambeck FROM: Glen Neier, City Attorn RE: LHC, Southwest Proje Bid The Sewer and Water Committee of the Kalispell City Council met on March 2.2, 1989 to review the bids on the Southwest Kalispell Project. At that meeting Dennis Carver, Project Engineer, informed the Committee that LHC, Inc. , the apparent low bidder, had informed Carver Engineering of a mistake in the bid. LHC, Inc. in bidding Alternative "A" proposed adding $17,421.17 to the base bid for roadway excavation. Upon review of the bid LHC, Inc. discovered that the bid was $30,348.00 too low because of a failure to include the cost of hauling material from the site. The matter was referred to this office for a recommen- dation to the Committee. In reviewing the matter of -the bid mistake, I requested that Butch Woolard of LHC, Inc. submit to my office his raw calculation sheet showing the computations necessary to properly bid Alternative "A". Dennis Carver and myself reviewed the data supplied by LHC and have determined that LHC in fact did fail in its computation to include hauling at $1.35/yd for 2.2480 yards of material to be removed from the site. The raw data sheet plainly shows that LHC intended to charge $1.35/yd for hauling in its bid. However, in transferring the amounts to the bid documents the $1.35/yd figure was left out and the bid on Alternative "A" was $17,421.17 instead of $47,769.17. Under the bid documents LHC, Inc. has the right to withdraw its bid and obtain return of the bid security provided LHC notifies the engineer of an error in its bid within 2.4 hours of the bid opening. LHC has complied with the notice provision of the bid documents but has not requested withdrawal of its bid. If LHC withdraws its bid the City may be required to award the contract to the next highest bidder at a cost increase of at least $96,018.77. When a -.party bidding on a project makes a mistake in the bidding document, relief may be granted to the party even though the mistake was unilateral and not induced by the other party. In order to Memo Page 2 March 28, 1989 grant relief the party awarding the contract must be convinced that the mistake was a mistake of fact and not one of judgment or law. Mistakes which might be subject to equitable adjustment include arith- metic errors, omission of labor or material costs, omission of items, etc. If a contractor makes a legitimate mistake he is entitled to relief provided the contractor can show by clear and convincing evidence that a mistake in fact was made. It is generally recognized that relief may be granted for a unilateral mistake of fact when: 1) There are grave consequences to enforcement of the contract which would render the contract unconscionable. 2) The mistake must be one of a material fact. 3) The mistake must not have been one of culpable negligence. 4) Relief must not cause the owner any serious prejudice. (Paraphrasing Handbook of Construction Law and Claims, Richter & Mitchell, 1982.) It appears that Montana case law in the area of bidding mistakes is somewhat in favor of granting relief when a factual mistake has been made. In Martel Construction, Inc. v. Board of Examiners, 668 P2d 222 (1983), the State awarded a bid for the construction of a building in Billings to Volk Construction in spite of the fact that Volk had failed to acknowledge an addenda to the solicitation for bids which resulted in a $55,2.80 increase in cost. Martel sued, as second lowest bidder, claiming that Volk's bid should have been thrown out and Martel awarded the contract. Martel's bid was $174,000 more than the Volk bid. The Supreme Court in reversing the District Court pointed out that the _Board exercised discretionary authority in awarding the contract and possessed the authority to "waive techni- calities and informalities" in any bid. The deviation in not ,acknowledging the addenda did not go to the substance of the bid when the mistake did not give Volk an advantage over other bidders. The Supreme Court stated that non -substantive irregularities were the types of irregularities which could be waived by awarding agencies. The competitive bidding statutes are primarily intended for the benefit of the public rather than the bidders. Absent fraud, bad faith or corruption by the public agency the law will not interfere with a public contract awarded to the lowest bidder. (Baker v State, 707 P2d 20 1985) The Committee in further review of the bids should consider all the evidence submitted by LHC which shows a legitimate mistake in bid computation. Memo Page 3 March 28, 1989 In this case, like Martel, supra, the cost of awarding a corrected contract is substantially less than allowing LHC to withdraw and going to the second low bidder. However, LHC officials should appear before the Committee and perhaps the Council and provide evidence that a mistake of fact was made and convince the Council of the need for relief. Dated this ` day of March, 1989. GN/sh