Adopt Resolution #19-265 Accepting Bids and Awarding Contract for Improvement Project #19-06, Ramsey Town Center 9th Addition Pond Lining Improvements

Purpose:
The purpose of this case is to adopt Resolution #19-265 accepting bids and awarding a construction contract for Improvement Project #19-06, Ramsey Town Center 9th Addition Pond Lining Improvements.

Background:
Two un-lined stormwater ponds were constructed as part of the Ramsey Town Center (RTC) 9th Addition in the early 2000's, allowing infiltration of stormwater runoff into the underlying soils.  The original developer walked away from RTC 9^th Addition before it was complete.  CentraHomes is in the process of completing construction of this private residential development.
 
Based on current stormwater management and wellhead protection standards, infiltration of stormwater is prohibited in Wellhead Protection Areas, which encompasses all of RTC 9^th Addition, including the two stormwater ponds. Staff proposes to install a geosynthetic clay liner within both ponds to prevent infiltration and protect the source aquifer for the City’s municipal water supply system.
 
While CentraHomes was developing their plans, Staff asked what their costs would be to line the ponds in hopes of executing a reimbursement agreement with CentraHomes to complete all work at the same time.  In order for CentraHomes to obtain quotes, they needed plans for the pond lining improvements.  City Staff developed plans and provided them to CentraHomes.  Unfortunately, their quotes were significantly higher than the engineer’s estimate based on the plans prepared in-house.  Attached is a copy of the plans prepared by City Staff.
 
On September 24th, the City Council approved the plans prepared by City Staff and authorized advertising for bids to construct the project.

Bids were advertised in the Anoka Union Herald and in Finance and Commerce on October 4, 2019.  Bids were also advertised using QuestCDN via the City’s website.

Observations:
Bids:
Bids were advertised in the Anoka Union Herald and in Finance and Commerce on October 4, 2019.  Bids were also advertised using QuestCDN via the City’s website.  On October 30, 2019, eight (8) sealed bids were publicly opened.  The bids were generally competitive and complied with the advertisement for bids. A summary of bids is below and in the attached resolution.
 

CONTRACTOR	TOTAL BID
JL Theis, Inc.	$105,152.00
Sunram Construction, Inc.	$112,922.00
Veit & Company, Inc.	$117,696.65
Peterson Companies	$128,888.00
US SiteWork	$131,933.00
New Look Contracting, Inc.	$139,752.00
Standard Contracting	$146,560.40
Northland Excavating	$147,197.75
Engineer’s Estimate	$84,371.24

 
JL Theis, Inc. of Jordan, Minnesota, submitted the lowest responsible total bid of $105,152.00 in accordance with the approved plans and specifications and advertisement for bids.  The low bid is $20,780.76 (24.6%) more than the engineer’s estimate.  This is due exclusively to the fact that the unit bid price received for the pond liner was $20 per square yard, whereas the engineer’s estimate included a unit bid price of $8 per square yard.  Multiplying the difference of $12 per square yard by the unit quantity of 1,951 square yards results in an additional $23,412.  Since unit bid prices for the pond liner ranged between $9.60 and $25.00 per square yard, Staff considers this a reasonable and competitive bid.
 
Following award of Contract, a Notice of Award will be issued to JL Theis, Inc. to initiate execution of a contract and issuance of the required bonds and insurance. The City Attorney will verify that the contract, bonds, and insurance are in proper legal form prior to execution of the contract. Once the Contract is executed, staff will issue a Notice to Proceed.  It is currently anticipated that construction will begin in late November, though this is dependent on the weather and on Contractor availability.

A preconstruction meeting will be held before construction begins. Following the pre-construction meeting, Staff will mail letters to nearby property owners to inform them of the proposed improvements and construction schedule, and to provide a link to the City’s web site where up-to-date information can be found during construction.  The letter will also include contact information in case property owners wish to contact the Contractor or City during construction for any reason.

Project schedule:
November 12 – Accept Bids / Award Contract
Mid to late-November – Begin construction
Early to mid-December – Substantial completion
June 2020 – Final Completion
 
Alternatives:
Alternative #1: Motion to adopt Resolution #19-265 accepting bids and awarding a construction contract for Improvement Project #19-06, Ramsey Town Center 9th Addition Pond Lining Improvements, to JL Theis, Inc. in the amount of $105,152.00.

Alternative #2: Motion to deny adoption of Resolution #19-265 at this time.

Project costs include 18% indirect costs for administrative (5%), engineering (12%), and legal (1%) costs.  Attached is a proposal from Bolton & Menk for construction staking services in the not-to-exceed amount of $980.  This cost is included under indirect costs for engineering.
 
Total project costs are $124,079.36 after adding indirect costs.  Project costs are proposed to be split equally between the Stormwater Management and Stormwater Utility Funds.

Staff recommends alternative #1.

Motion to adopt Resolution #19-265 accepting bids and awarding a construction contract for Improvement Project #19-06, Ramsey Town Center 9th Addition Pond Lining Improvements, to JL Theis, Inc. in the amount of $105,152.00.