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9.e) Staff Report-Lilleskogen Parking Lot Staff Report Date of Meeting: May 19, 2015 To: City Council From: Kristina Handt, Administrator Re: Lilleskogen Parking Lot Background: Last fall, after the preliminary levy was set, the Parks and Recreation Committee and the Planning Commission recommended the Council have the parking lot at Lilleskogen completed in 2015. However, this project was not included in the final budget or CIP adopted by the Council in December. Earlier this spring when discussing the specs and bidding out Quinnell staff recommended including the Lilleskogen parking lot as an alternative in the bid package. We had hoped that by combining it with a larger project we could get more favorable pricing. However, because of the lateness of our bid process (most other cities were done a month or more ago), we’re seeing higher prices as the contractors’ schedules are filling up. Issue: Should the City Approve the bid from Dresel for the Lilleskogen parking lot? If not, how should we proceed? Proposal Details/Discussion/Fiscal Impact: As City Engineer Goodman mentioned in the previous agenda item regarding Quinnell, the low bid for Lilleskogen was $45,124.30. Staff had previously estimated the project to cost around $23,000. The PRC and Capital Improvement Committee, prior to knowing the bid amount, was recommending the project be completed this year with the use of about $8,000 in Park Capital Improvement Funds (PCIF) for Lilleskogen and an advance of up to $30,000 from the Capital Improvement Fund to the Park CIF. The loan would have been paid back over time as park dedication fees came in from subdivisions. Over the last few years the revenue to the fund from dedication fees had been between $0-$6,000 per year. Given that the bid came in so high, staff is recommending it not be awarded at this time. Alternatively, we have been exploring rebidding it to smaller subcontractors in hopes of getting better pricing. There is also the possibility that the scope of the work that gets bid out could change if some of the work was done by Public Works staff. However, this latter option is not viable for this summer given our staffing shortages so the project would need to be moved back to next year. Lastly, if the City is willing to partner with other organizations (i.e. Lions Foundation) on projects allowed at Lilleskogen (i.e. memorial) there may be additional donations made to help with the site preparation. Options: 1) Rebid project to smaller subcontractors this year 2) Direct the PRC to re-examine the scope of work and make adjustments to bid out next year with street projects 3) Award the bid to Dresel for $45,124.30 4) Do not take any action on the parking lot until the PCIF is sufficient to cover costs Recommendation: Option 1 and/or Option 2