Adopt Resolution #20-124 Accepting Bids and Awarding Contract for Variolite Street Reconstruction, Improvement Project #20-01.

Purpose:
The purpose of this case is to adopt Resolution #20-124 accepting bids and awarding a construction Contract for Variolite Street Reconstruction, Improvement Project #20-01.

Background:
(This section was updated June 5th following the bid opening.)
City Improvement Project 20-01 proposes to reconstruct Variolite Street between Alpine Drive and 173^rd Avenue. The street totals approximately 12,000 linear feet (2.28 miles) in length. A figure showing the location and scope of the proposed improvements is included on the cover sheet of the attached plans.
 
On September 10, 2019, the City Council authorized Staff to execute proposals from Hakanson Anderson and Associates for required topographic survey in the amount of $12,800, and from Northern Technologies Inc. for required geotechnical work in the amount of $29,750.  This work was necessary to allow the project to be completed in 2020, and the work needed to be completed before winter weather set in.
 
On December 10, 2019, the City Council ordered the City Engineer to prepare a feasibility report to explore the necessity, feasibility and cost-effectiveness of the proposed improvements by examining the existing conditions, scope of the proposed improvements, design alternatives, estimated costs and available funding sources, and determining whether the improvements should be completed as proposed or in connection with other improvements.
 
Following discussions with the Public Works Committee in 2019 and 2020, explored options for reducing speeds and improving pedestrian accommodations along Variolite Street in response to input received from area residents. According to the residents, excessive vehicle speeds have been observed along Variolite Street, and pedestrians do not feel safe trying to cross Variolite Street at 161^st Avenue.  The residents live in the Sweetbay Ridge and Woodlands residential neighborhoods and cross Variolite Street to go to Central Park or the regional trail along Armstrong Boulevard.
 
While preparing the Feasibility Report, Staff explored options for traffic calming along Variolite Street and pedestrian crosswalk improvements at 161^st Avenue.  Based on the analysis completed, Staff recommended reconstructing Variolite Street “as is” north of 163^rd Lane, but reducing the overall pavement width from 40-feet to 34-feet south of 163^rd Lane, allowing for a posted speed limit reduction from 50 mph to 40 mph.  Staff also recommended constructing an 8-foot wide raised concrete pedestrian refuge island in the center of Variolite Street, north of 161^st Avenue.  This will improve pedestrian safety by allowing pedestrians to focus on one lane of travel at a time, by decreasing the overall distance a pedestrian needs to cross at one time, and by reducing vehicle speeds.
 
On April 14, 2020, the City Council accepted the Feasibility Report, including Staff’s recommendations, and ordered preparation of plans and specifications.  Final plans and specifications were prepared with the following considerations.
 
Pavement Improvements
Variolite Street is a Municipal State Aid (MSA) street and must be reconstructed to current MSA design standards as regulated by the State Aid Division of the Minnesota Department of Transportation (MnDOT).  Given the MSA 9-ton pavement design requirement, the potential for heavy truck traffic, and the varying subgrade soils encountered along the corridor, the pavement was designed as a Stabilized Full Depth Reclamation (SFDR) with 4-inches of new bituminous pavement placed on top.
 
The surface elevation of Variolite Street generally remains unchanged.  The new pavement width remains the same north of 163^rd Lane, but will generally be 6-feet narrower south of 163^rd Lane to facilitate a reduced posted speed limit of 40 mph. The pavement width at 161^st Avenue will be 50-feet to accommodate the pedestrian crosswalk and turn lane improvements, and will transition back to a width of 34-feet within several hundred feet on both sides of the intersection.
 
To properly transition from the new edge of pavement to adjoining side streets and driveways, some paving work on side streets and driveways will be required, though such work is proposed to occur within City-owned right of way and easements, not on private property. In the unlikely event work needs to occur on private property, Staff will work with affected property owners to complete all work to the property owner’s satisfaction.
 
A segment of Variolite Street just north of Trott Brook about 150-feet long has been repaired several times over the years due to damage resulting from high groundwater.  At times, groundwater has been observed flowing up through cracks in the pavement. To help prevent similar damage in the future, 4-inch perforated PVC drain tile will be installed under the new pavement section to drain the groundwater into the drainage ditches.
 
Stormwater Improvements
Stormwater is generally conveyed through existing drainage ditches along both sides of Variolite Street, with culverts extending under driveways, abutting side streets, and under Variolite Street at low points. Several culverts will be replaced with this project, though driveway culverts are not proposed to be replaced.
 
Municipal Utility Improvements
Trunk utility improvements are proposed with this project including the replacement of existing 10-inch force main trunk sanitary sewer with 21-inch gravity trunk sewer between 163^rd Avenue and 166^th Avenue, and the extension of 12-inch trunk watermain from 166^th Avenue to 173^rd Avenue. These improvements are consistent with the 2040 City of Ramsey Comprehensive Plan in support of future expansion of City sewer and water to northern areas of the City to serve future development, and are proposed to be constructed with this project to prevent unnecessary street reconstruction costs in the future.
 
Alternate Bids
Alternate Bid A - Specifies construction of a Rectangular Rapid Flashing Beacon (RRFB) pedestrian actuated signal system with advance warning signs.  This signal system utilizes flashing amber lights both at the pedestrian crosswalk and hundreds of feet in advance to alert drivers that a pedestrian is using the crosswalk.  Attached are pictures of the existing RRFB at Armstrong Boulevard and Riverdale Drive for reference.
 
Alternate Bid B - Specifies construction of directionally bored high-density polyethylene (HDPE) watermain in lieu of open trenching ductile-iron pipe (DIP) watermain as specified in the base bid. Please note that Alternate Bid B may be bid as a positive amount if the contractor feels it will cost them more to construct the HDPE watermain as specified, or a negative amount if they feel it will cost them less to construct the HDPE watermain.
 
Property Access
During the design process, Staff made every effort to keep all work within existing right of ways and easements and does not anticipate construction impacts to private properties. However, due to the nature of construction there will be temporary interruptions to access of driveways and side streets that directly access Variolite Street.
 
Sanitary sewer construction will be over 20-feet deep in areas between 163^rd Avenue and 166^th Avenue so Variolite Street will need to be closed to traffic during this construction.  However, a temporary access road will be provided to maintain access for the four (4) properties on 165th Lane, and for the properties with direct access to Variolite Street along this stretch. These residents have no other way of accessing their properties.  Due to the depth of the sewer construction there may be periods of up to several hours when direct access to properties will not be available, though all residents will be able to access their property by the end of each work day.  Staff will work closely with these residents during construction to minimize access interruptions.
 
In general, access will be maintained as best as practical during construction, and at the end of each work day all properties will be accessible.  Access for emergency services will also be maintained throughout construction.
 
Project schedule
June 9 – Accept Bids / Award Contract
Late June / early July – Begin construction
November – Substantial completion (open to traffic)
July 2021 – Final completion
 
Public Comment
Staff has responded to various questions and concerns received from property owners during the design process.  A general summary of questions and responses is below.

• What will my assessment be? Staff responded no assessments are proposed with this project
• How much right of way exists along my property line? Staff provided the existing right of way measurement and a plan sheet showing the right of way.
• Will trees along my property be removed? Staff met with two property owners in the southeast quadrant of Variolite Street and 161^st Avenue, then moved Variolite Street as far west as possible and narrowed the off-road trail to be reconstructed from 10-feet to 8-feet to prevent the need to remove trees.
• Will off-road trails be extended? Staff responded that no trails are proposed to be extended, and the dead-end trail segment north of 163^rd Avenue is proposed to be removed.
• Will vehicles be able to navigate the improvements at 161^st Avenue without running off the pavement? Staff responded that turning movements were checked during design and corner curb radii were expanded as needed.
• Will my irrigation system need to be relocated? Staff responded that the City’s current policy places the responsibility on the home owner to relocate sprinkler system components impacted by construction. However, Staff will provide as much advance notice as possible before construction of which sprinkler components need to be moved, and can then mark construction limits to help with relocation efforts.

 
Links are available on the project web page so people can review the Feasibility Report and final construction plans.  Letters were also mailed to 438 property owners informing them of the project, the project web page, and who to contact with questions during the design process.  After the preconstruction meeting is conducted with the Contractor, Staff will mail another letter to local residents including the preliminary construction schedule, contact information for construction Staff, irrigation system relocation information, and any other pertinent information.  Staff will also respond to questions received during construction, and will update the project web page as new information becomes available throughout construction.   

Advertisements were published in the Anoka Union Herald and in Finance & Commerce on May 15 and 22, 2020, as required per State Statute. Bids were also advertised on-line on QuestCDN.  

Observations:
The proposed improvements should have a serviceable life of 60 years, assuming that proactive maintenance operations are performed on a regular basis during the life of the improvements.
 
This project was bid electronically through QuestCDN.  The Engineering Department moved to full electronic bids using QuestCDN in 2019 to help streamline the bidding process for both the City and the bidders.  This also allowed bids to be opened “publicly” on-line, which is critical at this time considering that in-person bid openings are not a viable option during the current COVID-19 pandemic.

Alternatives:
(This section was updated June 5th following the bid opening.)
Alternative #1 – Motion to adopt Resolution #20-124 accepting bids and awarding a construction Contract for Variolite Street Reconstruction, Improvement Project #20-01, to Park Construction Company for the total bid in the amount of $2,811,859.49.

Alternative #2 – Motion to adopt Resolution #20-124 accepting bids and awarding a construction Contract for Variolite Street Reconstruction, Improvement Project #20-01, to Park Construction Company for the _______ bid(s) in the amount of $_____________.
 
Alternative #3 – Motion to deny adoption of Resolution #20-124 at this time.

(This section was updated June 5th following the bid opening.)
Bids were advertised in the Anoka Union Herald and in Finance and Commerce on May 15 and 22, 2020.  On June 5, 2020, a total of five bids were received, opened, and tabulated, and the following bids were found to comply with the advertisement for bids.
 

CONTRACTOR	BASE BID	ALT. BID A	ALT. BID B	TOTAL BID
Park Construction Company	$2,813,756.09	$40,200.00	$-42,096.60	$2,811,859.49
NorthValley, Inc.	$2,889,124.68	$43,158.94	$14,332.89	$2,946,616.51
Kuechle Underground Inc.	$2,921,621.18	$19,000.00	$33,410.00	$2,974,031.18
Northdale Construction Co. Inc.	$3,087,526.29	$42,210.00	$-25,759.11	$3,103,977.18
Douglas-Kerr Underground, LLC	$3,259,105.52	$37,840.00	$-7,350.20	$3,289,595.32
Engineer’s Estimate	$3,334,738.00	$40,000.00	$50,115.00	$3,424,853.00

 
The bid of Park Construction Company of Minneapolis, Minnesota, in the amount of $2,811,859.49 for the total bid for construction of said improvements in accordance with the approved plans and specifications and advertisement for bids, is the lowest responsible bidder, regardless of whether Alternate Bid A and/or Alternate Bid B are awarded in addition to the base bid.  Adding indirect costs in the amount of 23% brings total project costs to $3,458,587.17.
 
Per the final plans and specifications, estimated construction costs were $3,334,738.00.  After adding 23-percent for indirect costs for administrative, engineering, finance and legal costs, estimated project costs totaled $4,101,727.74.
 
The low bid is 18.6% less than the engineer’s estimate, primarily due to lower than estimated bituminous paving prices.
 
Funding sources for these improvements includes a mix of Municipal State Aid (MSA) Funds and Stormwater Funds.  A more detailed breakdown of project costs and funding sources for the various construction categories including street, storm sewer, sanitary sewer and watermain improvements will be presented during the Council meeting.
 
Hakanson Anderson proposes to provide construction staking in a total not-to-exceed amount of $26,480.  These costs are included in the 23% indirect costs.  Staff feels these costs are reasonable based on the scope of the proposed improvements and required staking and recommends accepting the proposal, which is attached for reference.
 
City staff proposes to administer and inspect construction.
 
At the September 17, 2019 Public Works Committee meeting, the Committee approved moving forward with this project without the use of special assessments. Variolite Street has only 13 direct accesses to private properties, and the assessments collected from these 13 properties would not generate enough to pay for the required assessment process.  The September 17, 2019 Public Works Committee meeting report was accepted at the October 8, 2019 City Council meeting.
 
Plans and specifications were prepared in-house as part of Staff's normal duties.

Outside costs incurred to date as engineering indirect costs include:

• $29,750 for NTI to prepare the Geotechnical Exploration and Engineering Review
• $13,650 for Hakanson Anderson to collect topographic survey and prepare the easement exhibit
• $1,283 for WSB to complete the pavement forensic report
• $2,140 for Braun Intertec to prepare the drain tile design report
• $14,000 for WSB to complete an emulsion SFDR mix design   

(This section was updated June 5th following the bid opening.)
Staff recommends Alternative #1.  Awarding Alternate Bid A will provide the greatest level of safety for pedestrians crossing Variolite Street at 161^st Avenue, and awarding Alternate Bid B will reduce overall project costs by over $42,000 and will reduce the overall construction schedule and impacts to the traveling public.   

(This section was updated June 5th following the bid opening.)
Motion to adopt Resolution #20-124 accepting bids and awarding a construction Contract for Variolite Street Reconstruction, Improvement Project #20-01, to Park Construction Company for the total bid in the amount of $2,811,859.49.