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ity of <br /> <br />ITEM 4.1. <br /> <br />iver <br /> <br />FROM: <br /> <br />DATE: <br /> <br />SUBJECT: <br /> <br />MEMORANDUM <br /> <br />Mayor & City Council <br /> <br />Pat Klaers, City Administrator <br /> <br />April 7, 1997 <br /> <br />Liquor Store Bids <br /> <br />The City Council is scheduled to review and consider the bids for the hquor <br />store project. Construction Manager Mike Parsons from Greystone has <br />worked with the architectural firm for the project, Tushie Montgomery, with <br />Liquor Store Manger Fritz Dolejs and city staff in evaluating and analyzing <br />the sixteen bid packages that Greystone will manage for the city. Attached <br />for your review is a summary of the recommended awards for the sixteen bid <br />packages. <br /> <br />It should be noted that the budget estimate was put together in January. <br />Following this budget estimate there were changes made in the lighting <br />package, so while it appears that the electrical proposal (Bid #5) is way over <br />budget, it is actually a very good price for the work requested. As an aside I <br />would like to note that Reliance Electric did the work on the ice arena project <br />and did a very good job for the city. <br /> <br />The city will be rejecting the bid for the windows and storefront package (Bid <br />#7) as this low bid is way over the budget estimate. It is proposed that we <br />will make some design and specification changes to the windows and <br />storefront package and that by rebidding the proposal with these changes the <br />city can get the price lowered by about $10,000 or more. Additionally we can <br />rebid this package without a delay in the project as this item is installed <br />later in the construction process. <br /> <br />Regarding the concrete and masonry low bid to MSC Concrete, Inc., I would <br />like to acknowledge that the city has received a letter from M.C. Magney <br />Construction, Inc., which indicates that this firm will file a lawsuit contesting <br />the award of the contract. M.C. Magney Construction, Inc., was the second <br />low bid. Mike Parsons will be able to discuss this issue with the City <br />Council. The City Attorney has analyzed the situation and believes that the <br />city's financial exposure is very limited if we are sued and lose. At this time <br />we believe that the items noted in the letter from the attorney from M.C. <br />Magney Construction, Inc., do not reflect a significant deviation from the <br />bidding requirements. The city has the right to waive minor irregularities in <br /> <br />13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 <br /> <br /> <br />