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3. Award Bid - Sidewalk & Curbing Construction for Year Ending December 31, 2007City Kali*spell Publi*c '..; .: .. ...... . . ..,.w"R' ,-;,tic: w .��^ N ��,F3w �M�;�= -� Past Office Box 1 997 Kalispell, Santana 59903- 19�97 Telephone 406758-7720 Fax 406755-7$31 . . . . . . ..... REPORT TO: Mayor and City Council FROM: James C. Hansz, P.E., Director of Public Works SUBJECT: Award Bid -- Annual Sidewalk and Curbing Contract MEETING DATE: May's, 2007 BACKGROUND: The 2006/2007 sidewalk replacement program was funded but there was no construction contract because no bids were received last year. The current budget included an appropriation of $25,000 to fund the City's 50/50 sidewalk replacement program, with approximately $20,000 remaining. The 2007/2008 budget is being prepared with an equal amount for sidewalk which would bring the total available to $45,000 for this contract. The bid was advertised and a single bid was received by the due date. The bidder is Sandon Construction. The Sandon company has installed sidewalk and curbing in the City for many years. Staff recommends award of the 2007 Sidewalk and Curbing bid to Sandon Construction. ACTION REQUESTED: A T CITY COUNCIL MEETING OF MA Y 7,MGTION TO AWARD THE BID FOR 200 7 SIDE WALK AND CURBING COASTR UCTIGN To SANDON CONSTR UCTION OF KALISPELL, MONTTANA. FISCAL EFFECTS: Potential expenditure of funds totaling up to $45,000.00. ALTERNATIVES: As suggested by the City Council Respectful sub �1 i James.. ansz, P.E. r of Public Works / Ci E gineer Attachment: Bid Recommen tion May 7, 2007 Award Bid 2007 Sidewalk and Curbing.doc James H. atrick City Manager MEMORANDUM April 27, 2007 To: James Hansz PE, Director of I blic Works Front: Fred Zavodny, Pr lie: 2007 Sidewalk and Cur ing o ion Bid Analysis and Recommendation This contract is primarily for property owners wishing to construct or replace public sidewalks and curbing adjacent to their property. This contract is also utilized for the 50/50 cost sharing program that was established by the City Council to encourage sidewalk replacement by equally dividing the cost between the property owner and the City. The City has $20,000 remaining in the current budget for sidewalk replacement. A $25,000 sidewalk replacement appropriation has been requested in the 2007/2008 City budget. If approved, a total of $45,000 would be available for the 2007 sidewalk 50150 replacement program. Bids for 2007 Sidewalk and Curbing Construction were opened on Thursday, April 26th. Sandon Construction was the only bidder. Sandon's bid is in order and contained the required Bid Bond. The cost to install a sidewalk at an average residential lot in 2005 was $1437.50. The City did not receive any bids in 2006. The 2007 Bid Price for a sidewalk installed at an average residential lot amounts to $1825.00 which represents an increase of 27% from 2005. The property owners 50150 share would amount to $912.50 which I believe to be fair. The increased construction costs are the result of a two year period of increased prices across the board for materials, labor, equipment, as well as the current instability of the petroleum products market. Sandon Construction has been installing sidewalk and curbing for the City for many years. I recommend the bid for Sidewalk and Curbing Construction for the year ending December 31, 2007 be awarded to Sandon Construction Company Inc.