BACKGROUND DISCUSSION

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1 CITY COMMISSION AGENDA MEMO September 24, 2014 FROM: Brian D. Johnson, P.E., City Engineer MEETING: October 7, 2014 SUBJECT: PRESENTER: Award Construction Contract for Stone Valley Addition, Unit Two, Sanitary Sewer (SS1413), Street (ST1413), and Water (WA1411) Improvements Robert K. Ott, P.E., Director of Public Works BACKGROUND As part of the subdivision process, it is necessary to provide City services to new subdivisions. As part of the development process, petitions to establish a benefit district need to be submitted and approved by the City Commission. On August 5, 2014, the developer of the Stone Valley Addition, Unit Two, subdivision submitted petitions to establish a benefit district to the City Commission. The City Commission approved Resolution Nos H, I, and J which authorized the design and construction of the public improvements. Since that meeting, design has proceeded forward and a bid letting was held on September 23, The Stone Valley addition is on the east side of Browning Avenue across from Susan B. Anthony Middle School (see map). DISCUSSION Attached is a letter of recommendation from the consultant to award a construction contract for sanitary sewer, street, and water improvements for Stone Valley Addition, Unit Two, and a bid summary outlining the results of the September 23, 2014, bid letting. Only one (1) bid was received. Larson Construction, Inc., of Manhattan, Kansas, submitted a total bid (parts A, B, and C) of $161,119. The Engineer s Opinion of Probable Cost was $169,500.

2 FINANCING Based on the bid from Larson Construction, Inc., total construction costs amount to $161,119. Costs associated with the improvements will be financed 100% by the benefiting properties with no cost to the City-At-Large. The breakdown of the costs are as follows: Sanitary Sewer (SS1413) ~ $28,448. All associated costs are to be financed by the benefiting properties. The Engineer s Opinion of Probable Cost was $32,100. Streets (ST1413) ~ $115,953. All associated costs are to be financed by the benefiting properties. The Engineer s Opinion of Probable Cost was $119,100. Water (WA1411) ~ $16,718. All associated costs are to be financed by the benefiting properties. The Engineer s Opinion of Probable Cost was $18,300. ALTERNATIVES It appears the Commission has the following alternatives concerning the issue at hand. The City Commission may: 1. Accept the Engineer s Opinion of Probable Cost in the amount of $169,500; award a construction contract in the amount of $161,119 to Larson Construction, Inc., of Manhattan, Kansas; and authorize the Mayor and City Clerk to execute the construction contract. 2. Accept the Engineer s Opinion of Probable Cost in the amount of $169,500, but do not award a construction contract. 3. Modify to meet the needs of the Commission. 4. Table the request. RECOMMENDATION City Administration recommends the City Commission accept the Engineer s Opinion of Probable Cost in the amount of $169,500; award a construction contract in the amount of $161,119 to Larson Construction, Inc., of Manhattan, Kansas; and authorize the Mayor and City Clerk to execute the contract.

3 POSSIBLE MOTION Accept the Engineer s Opinion of Probable Cost in the amount of $169,500; award a construction contract in the amount of $161,119 to Larson Construction, Inc., of Manhattan, Kansas; and authorize the Mayor and City Clerk to execute the contract for the Stone Valley Addition, Unit Two, Sanitary Sewer (SS1413), Street (ST1413), and Water (WA1411) Improvements BJ/ie Enclosures: 1. Schwab-Eaton Letter of Recommendation 2. Bid Summary 3. Map

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5 STONE VALLEY, UNIT TWO CITY OF MANHATTAN, KANSAS TUESDAY, SEPTEMBER 23, 2014 BIDDER BID BOND ADD #1 BASE BID PART A BASE BID PART B BASE BID PART C TOTAL BID Parts A, B, C Larson Construction, Inc.* $28, $16, $115, $161, * Engineer's Opinion of Probable Cost $32, $18, $119, $169, Tabulated by: Gregory E. Fief, PE *Recommend award of contract.

6 Willow Grove Ln Willow Grove Ln Blakewood Pl St Anthony Pl Willow Grove Ln 17B 17A 18A 18B Willow Bend Ct 21A 21B 20B 19A 20A 19B Stone Valley Unit 2 Sanitary Sewer, Street & Water Benefit District SS 1413, ST 1413, WA 1413 Parcels Benefit District Parcels Feet

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