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City manager reports low bids for Karnes Community Center parking lot; staff says school district will cover up to $160,000

Mount Clemens City Commission · June 5, 2024
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Summary

City staff presented bids that were substantially lower than the engineer's estimate for resurfacing the Karnes Community Center parking lot but warned of a possible small increase to address stormwater drainage. Staff said the existing agreement provides the school district would pay up to $160,000 over five years; no award motion was required because the bid process governs selection.

The city manager presented a bid tabulation for resurfacing the Karnes Community Center parking lot and told the commission that bids came in substantially lower than the original engineer's estimate, but that the city expects a possible small increase in cost once construction begins to address stormwater drainage.

"Bids received were substantially lower than the original engineer's estimate. However, upon further review, we do anticipate a small increase to the bid amount once construction begins to ensure that the storm water drainage of the parking lot is addressed appropriately," the city manager said.

The city manager also noted the bid tabulation did not include construction inspection or material testing; those services will be performed by an external firm. A commissioner asked whether the cost of the project will be absorbed by the school district. Staff responded that the agreement provides the district would pay up to $160,000 over a five-year period and that the commission previously approved a stipend arrangement related to the parking lot.

"The agreement provided that they would pay up to a $160,000 over a 5 year period," a staff member said.

Staff told the commission that because the bid process governs award procedures, no formal motion to award a contract was required at the meeting. One commissioner suggested the item might have been placed under the consent agenda in the future to reflect its administrative nature.

Why it matters: The Karnes Community Center parking lot is a city facility whose resurfacing affects traffic, drainage and budgets. The city’s note that inspection and testing are not included in the bid indicates additional project costs beyond the low bid prices, and the school district's committed contribution caps the district's exposure at $160,000 over five years according to staff statements.

No contract award or appropriation was approved at this meeting; staff will proceed according to procurement rules and return to the commission if further action is required.