Is 30% percent above estimate; but change order cuts that total
There was only one bid for the Well #7 project, but after discussion and consideration, the Mountain Lake City Council accepted that bid at their Monday, August 18 meeting.
The bid, from GM Contracting of Lake Crystal, was approximately 30% above engineer’s estimates – at a cost of $723,257.23.
Andy Kehren of Bolton & Menk, the city’s engineer, explained to council members that due to the poor spring weather conditions, contractors had enough work lined up for the season, and are not looking for additional work. Kehren went on to share that his firm has projects in both St. Peter and Austin that had no bidders for the work, and that projects in other cities had only a single bidder, mirroring that of the City of Mountain Lake’s well project.
After learning from Kehren that if the project were to be re-bid next spring in order to get a more competitive bid, the city would need to reapply for the substantial grant and loan forgiveness funds it has received from the State of Minnesota’s Small Cities Development Program and Public Facilities Authority – and that this possibility could potentially mean the project could receive less state funding – the council moved to award the well bid.
The project cost above the amount of the state’s grant/loan will be loaned from other city funds to the water fund.
A change order in the project, however, did reduce the bid amount by $58,775.15. This reduction was due to the contractor opting to use horizontal directional boring, which is less costly than an open trench and means less traffic control costs. The bid amount was further reduced by having city staff – and not the contractor – complete the tree removal necessary for the project.
In other business
* Reviewed reductions made to the 2015 Draft Budget. The Mountain Lake Fire Department budget, employee salaries and contributions were discussed.
* Reviewed the City of Mountain Lake’s share of the second quarter indoor swimming pool bill. The city will contribute $2,280.26 to Mountain Lake Public School in support of the pool for the second quarter (April through June). The city entered into a three-year agreement (2011-2013) with the public school to contribute up to $15,000 per year to assist in operation of the pool. The agreement was extended to include a fourth year, 2014.
* Reviewed the 2013 Conservation Improvement Plan (CIP) saving and spending totals of the Mountain Lake Utility, and also the cumulative totals of all participating Central Minnesota Municipal Power Agency members.
* Learned that Mountain Lake City Administrator/Clerk Wendy Meyer is continuing to seek quotes for the appraisal of representative properties in the 2012-2014 Utility and Street Project.
* Adopted a resolution for certification of unpaid Utility charges.
* Mayor Dean Janzen closed the meeting – on attorney/client privilege – to discuss the street settling issue on 2nd Avenue, 5th Avenue, 6th Avenue and Prince Street. No information was released after the closed meeting dismissed and the open meeting reconvened.
