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HomeMy WebLinkAboutNorth 7th Avenue Lighting Improvements Contract Award Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Dustin Johnson, Project Engineer Rick Hixson, City Engineer SUBJECT: North 7th Avenue Lighting Improvements MEETING DATE: October 15, 2012 AGENDA ITEM TYPE: Action RECOMMENDATION: Motion and vote to authorize City Manage to sign Contract with Yellowstone Electric Co. in the amount of $574,485.00 for the North 7th Avenue Lighting Improvements Project. BACKGROUND: Moving into the FY 2013 budget the North Seventh Urban Renewal Board (NSURB) made one of their top priorities the installation of new street lights. Due to the size of the project it was broken into specific phases, and the board determined they would start the project on the north end of the corridor and move south towards Main Street. This initial phase would install lights from the I-90 off-ramp to Juniper Street. The FY2013 NSURB budget was set at $534,349 and was intended to fund this initial phase and the purchase of light fixtures for Montana Department of Transportation (MDT) I-90 bridge replacement project. As of September 28, 2012, a total of $860,141 is available in the NSURB tax increment finance fund account. The NSURB has requested an amendment to their FY2013 budget to offset the additional costs for the FY2013 lighting improvements. NSURB hired Morrison Maierle to design and bid the project. The board has worked closely with Morrison Maierle to assure that the project meets their overall goal for the corridor. An additive alternate was included with the base bid which included painting the existing lighting and directional signage poles to match new lights. When bids were open on September 11, 2012 two bids were received. The apparent low bidder was Yellowstone Electric Company with a base bid with additive alternate #1 of $574,485.00. In reviewing the bids it became evident that there were two issues with the low bid; the first issue being that the lowest bid was well over the engineers estimate and the budget for the project and the second issue was some irregularities found in Yellowstone Electric’s bid. The issue regarding the price of the bid was brought before the NSURB during their September board meeting. The board decided that the lighting project was still worth the cost and voted to take amended budget to the City Commission for their review and approval. This amended budget is on this agenda and will be heard prior to this. 285 The issue regarding the irregularities in Yellowstone Electric’s bid was reviewed by city engineering staff, Morrison Maierle, and city legal staff. In the review of the bid, the contract documents, and correspondence with Yellowstone Electric it was determined that the bid was both responsive and responsible. Included with this memo are copies of correspondence and findings from city staff, Morrison Maierle, and Yellowstone Electric determining the bid to be responsive and responsible. UNRESOLVED ISSUES: None ALTERNATIVES: As suggested by the City Commission. FISCAL EFFECTS: The NSURB has submitted an amended budget to be heard by the City Commission before reviewing the award of this contract. All the fiscal effects and how they impact the overall budget of the NSURB are detailed in amended budget submitted. Attachments: September 27, 2012 Letter from Morrison Maierle September 25, 2012 Letter from Yellowstone Electric Co. Revised Bid Tab September 19, 2012 Email from Staff Attorney Tim Cooper Notice of Award Contractor’s Insurance Checklist Report compiled on: 10/3/12 286 287 288 289 290 291 292