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<br /> <br />Item # 5.1. <br /> <br />MEMORANDUM <br /> <br />TO: Mayor and City Council <br /> <br />FROM: Lori Johnson, Finance and Administrative Services Director <br /> <br />DATE: March 21, 2005 <br /> <br />SUBJECT: Consider Westbound Liquor Store Bids <br /> <br />The city received bids for the Westbound Liquor Store construction project on March 8. Steve <br />Chuba, the project manager from Greystone Construction, and architect Dan Pellinen have <br />reviewed the bids. Attached is a memo from Mr. Chuba outlining their recommendations on each <br />bid package. Also attached is a project budget and bid comparison for the Council's reference. <br /> <br />There were 22 bid packages included in the proposal; the recommendation is that 18 of the bid <br />packages be awarded and four be rejected. These four are being recommended for rejection because <br />the bids far exceeded the budgeted construction estimate or they did not meet bid specifications. <br />Some of these rejected bid packages are estimated to be less than $50,000 so they will be negotiated <br />through the quoting process as permitted by statute. The packages in excess of $50,000 will be <br />rebid. <br /> <br />The budget for this project including start up costs, such as inventory but excluding financing costs, <br />is approximately $2,098,000. Although four of the bid packages are not being awarded at this time, <br />the project manager and architect still think that the project will come in close to the budgeted <br />amount. If the four remaining bid packages come in at the budgeted amount, the project will be <br />under budget by approximately $70,000; however, if the fmal bids come in close to the bids <br />currendy being rejected, the project will be over budget. <br /> <br />Finally, now that bids have been received and the actual construction cost is more certain, fmancing <br />will be put in place and presented to the Council for consideration at an upcoming meeting. <br /> <br />Action Requested <br />The City Council is asked to act on the 22 bid packages for Westbound Liquor Store as oudined in <br />the attached letter from Steve Chuba, Project Manager for Greystone Construction Company. <br />