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ITEM 3.12 Rejections of all bids Quaday Extension AveOt�ceF o MINNESOTA DEPARTMENT INFORMATION Request for City Council Action ORIGINATING DEPARTMENT: REQUESTOR: MEETING DATE: Public Works City Engineer Wagner May 23, 2016 PRESENTER(s): REVIEWED BY: ITEM #: City Engineer Wagner City Administrator Johnson 3.12 AGENDA ITEM DETAILS RECOMMENDATION: City Staff recommends rejection of all bids for the Quaday Avenue Extension Project south of 85th St. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? No No BACKGROUND/JUSTIFICATION: The City of Otsego advertised for bids and subsequently opened bids on April 19th of 2016. Award of the project was delayed until closing of the adjacent development could occur. Once the closing was secured, the City of Otsego completed a thorough research of items needed to meet the requirements of the DEED grant. One of the item required, which was noted to Hakanson Anderson by the City Administrator in January, was not included in the bid documents. The DEED grant requires the inclusion of prevailing wages and equal employment opportunity language within the bidding documentation. Due to the non -inclusion of those documents in the specification, staff determined the bids must be rejected and the project re -advertised with all the proper documents within the specifications. Re - advertisement has proceeded and a bid opening will occur on June 7th of 2016. Award of the project is anticipated at the meeting on June 131h. The substantial completion date has remained at September 15th of 2016. SUPPORTING DOCUMENTS: X ATTACHED NONE • Resolution • Bid Tab from 4-19-16 opening MOTION: (Please word motion as you would like it to appear in the minutes.) Motion to approve Resolution 16-54 rejecting all bids received on April 19th, 2016 for the Quaday Avenue Extension Project south of 85th St. RI ill(,FT IMF:r)RMATInN FUNDING: BUDGETED: X YES DEED Grant NO Assessments RESOLUTION NO. 2016-54 RESOLUTION REJECTING ALL BIDS OPENED APRIL 19T" OF 2016 FOR THE IMPROVEMENT OF QUADAY AVENUE NE (FROM 85T" ST NE SOUTH 1100') WHEREAS, a bid opening was held April 19th, 2016 for the improvement of Quaday Ave NE (from 85th St NE south 1100') by constructing street, sanitary sewer, storm sewer, water main, sidewalk and trails; WHEREAS, upon review of requirements necessary per DEED Grant certain items were not included in the specifications which jeopardize the City's eligibility for the grant and may cause the City of Otsego to be liable for costs incurred for the project; WHEREAS, per bid documents dated March 30th, 2016, the City of Otsego has the ability to reject all bids at its sole discretion; WHEREAS, the City of Otsego has re -advertised with the appropriate documents and language included in the specifications to meet the requirements of the DEED grant; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA: 1. Rejects all bids obtained during a bid opening held April 19th, 2016 and has re - advertised revised bid documents to ensure compliance with DEED grant requirements. 2. The City Clerk shall prepare and cause to be inserted online in Quest CDN and within the City of Otsego's website, an advertisement for bids upon the making of such improvement under such approved plans and specifications. The advertisement shall be viewable for (3) three week(s), shall specify the work to be done, shall state that bids will be opened and considered by the council at 2:00 p.m. on June 7, 2016, in the lunch room of City Hall located at, 13400 90th Street NE, Otsego, MN 55330. No bids will be considered unless sealed and filed with the clerk and accompanied by a cash deposit, cashier's check, bid bond, or certified check payable to the clerk for 5.0 percent of the amount of each bid. Adopted by the council this 23nd day of May, 2016. 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