Adopt Resolution #21-106 Accepting Bids and Awarding Contract for Business Park 95 Street Reconstructions, Improvement Project #21-03

Purpose:
The purpose of this case is to adopt Resolution #21-106 Accepting Bids and Awarding Contract for Business Park 95 Street Reconstructions, Improvement Project #21-03.
 
Background:
City Improvement Project 21-03 proposes to reconstruct the streets within the Business Park 95 subdivision including; 140^th Avenue, McKinley Street, Radium Street and Unity Street. The streets total approximately 6,314 lineal feet (1.20 miles) in length. Attached are the final plans for this project. The title sheet shows the project scope.
 
On February 24, 2020, the Ramsey City Council indefinitely suspended the annual sealcoat program and reallocated $250,000 of the budgeted 2020 sealcoat funds for mill and overlay improvements in the Business Park 95 subdivision. Also in February of 2020, WSB performed a pavement forensics report of the amended 2020 mill and overlay project, including Business Park 95. This report was critical in Staff’s recommendation not to mill and overlay the streets within Business Park 95 in 2020. On March 16, 2020, the Public Works Committee supported Staff’s conclusions and recommendations that the proposed Amended 2020 Pavement Overlay Improvements, including Business Park 95, were not feasible or cost-effective from an engineering standpoint, and that the overlay improvements as proposed should not be completed in 2020.

On November 10, 2020, the Ramsey City Council authorized Staff to execute proposals from Bolton & Menk for collecting the required topographic survey to preare plans and specifications, and from Chosen Valley Testing (CVT) for required geotechnical work. The CVT Geotechnical Report igenerally found clean sand below the existing bituminous and gravel pavement section.
 
On December 8, 2020, the Ramsey City Council approved the 2021 – 2030 Capital Improvement Program, which identified Business Park 95 for reconstruction in 2021. That same evening, City Council authorized Staff to execute proposals from Nelson Sanitation & Rental, Inc. for televising services of the sanitary sewer and storm sewer within the project area, and from Water Conservation Services, Inc. for watermain leak testing services within the project area.
 
The watermain leak test results indicated that all of the watermain is in good condition and does not need repairs.
 
The sanitary sewer televising showed that the sanitary sewer system is generally in good condition and does not need any major repairs. However, one small crack was observed in the obvert (top) of a pipe segment near the intersection of Unity Street and 140^th Avenue. Staff considered the options for repairing the crack and recommend lining the pipe in the future instead of replacing the pipe as part of this project, which would require closing the street for several days to dig the pipe up and replace it. It is also significantly cheaper to line a pipe than to excavate the street and replace the pipe and a portion of the street in the process. Lining a pipe can also be completed without closing the street to traffic.
 
The storm sewer televising showed that more than half of the storm sewer was plastic pipe, and that much of the smaller diameter plastic pipe needed to be replaced. In addition, several hundred feet of concrete storm sewer needed to be replaced. This cost was not accounted for in the CIP storm sewer cost estimates, which significantly increased project costs.
 
In 2020, Business Park 95 was included in the Ground Penetrating Radar Pavement Evaluation performed by Braun Intertec. This data provides bituminous and aggregate base thickness information. The Ground Penetrating Radar (GPR) data is included in the street segment summary attached to this case.
 
The Business park 95 subdivision is a commercial subdivision with heavy truck traffic. During the fall of 2020, Staff took traffic counts with annual daily traffic (ADT) volumes of; 846 on Unity Street south of Bunker Lake Boulevard, and 2,245 on McKinley Street east of Sunfish Lake Boulevard. The City does not have a standard commercial pavement section, however, since these roads must be open during all seasons to heavy truck traffic, the streets are proposed to be reconstructed to a 9-ton design using MnDOT’s design guidelines. Based upon pavement coring’s, the existing pavement section meets a 9-ton design. The existing concrete curb and gutter is generally in good condition.
 
The streets are proposed to be reconstructed using the full-depth reclamation process. This includes reclaiming the existing pavement and aggregate base section, removing the top 4-inches of reclaim, and then compacting the remaining 6-inches of material in place to serve as aggregate base. Then 4-inches of new bituminous pavement is proposed to be placed on top to effectively provide a 10-inch minimum pavement section, meeting a 9-ton design strength.
 
The pavement on the east end of McKinley Street ends approximately 450-feet east of Radium Street, after which it becomes a gravel surface for approximately 75-feet before turning into a private driveway. This leaves no space within public right of way for snow plows or emergency vehicles to turn around. The plans include an alternative bid for extending the pavement on McKinley Street approximately 250-feet east, and constructing a paved cul-de-sac on the east end within existing right-of-way. The cul-de-sac extension is supported by the Public Works Department and Fire Department. This cul-de-sac extension would have the added benefit of providing better access to an existing trunk sanitary sewer line which exists in green space east of McKinley Street. Bidding the cul-de-sac extension as an alternate bid will allow the City Council to know the bid price before deciding whether to construct the cul-de-sac extension.
 
Approximately 450-feet of the west end of McKinley Street is proposed to be left as is as this segment will be reconstructed with the Sunfish Lake Boulevard & BNSF Railway grade separation improvements, part of the Ramsey Gateway Highway 10 Improvements project. The construction limits on the west end of McKinley Street were designed to match the tie down location for the segment of McKinley Street to be reconstructed with the Ramsey Gateway Improvements to avoid throw away costs.
 
The street improvements proposed with this project are identified in the City’s current 10-year CIP, and can be funded using a combination of Pavement Management Funds, Stormwater Utility Funds, and previously budgeted funds. The McKinley Street extension is proposed to be funded using a combination of Public Improvement Revolving Funds and Stormwater Utility Funds. This project would best be constructed as a stand-alone project and is necessary, feasible, and cost-effective from an engineering standpoint, and can be constructed as proposed herein.
 
The proposed improvements are designated as City Improvement Project #21-03, Business Park 95 Street Reconstructions. 

Advertisements were published in the Anoka Union Herald and in Finance & Commerce on March 26 and April 2, 2021. Bids were also advertised on-line on QuestCDN. 

Alternative #1 – Motion to adopt Resolution #21-106 accepting bids and awarding a construction contract for Business Park 95 Street Reconstructions, Improvement Project #21-03, to North Valley, Inc. for the total bid in the amount of $942,685.58.
 
Alternative #2 – Motion to adopt Resolution #21-106 accepting bids and awarding a construction contract for Business Park 95 Street Reconstruction, Improvement Project #21-03, to North Valley Inc. for the base bid in the amount of $801,763.35.
 
Alternative #3 – Motion to deny adoption of Resolution #21-106 at this time.

Bids were advertised in the Anoka Union Herald and in Finance and Commerce on March 26 and April 2, 2021. On April 19, 2021 a total of five (5) bids were received, opened, and tabulated, and the following bids were found to comply with the advertisement for bids.
 

CONTRACTOR	BASE BID	ALT. A BID	TOTAL BID
North Valley, Inc.	$ 801,763.35	$ 140,922.23	$ 942,685.58
Douglas-Kerr Underground, L.L.C.	$ 823,460.08	$ 136,162.50	$ 959,622.58
Asphalt Surface Technologies Corp.	$ 817,550.31	$ 156,383.93	$ 973,934.24
Kuechle Underground Inc.	$ 925,740.63	$ 150,022.00	$ 1,075,762.63
Park Construction Company	$ 924,682.94	$ 167,434.35	$ 1,092,117.29
Engineer’s Estimate	$ 1,000,414.80	$ 164,601.00	$ 1,165,015.80

 
The bid of North Valley, Inc. of Nowthen, Minnesota, in the amount of $942,685.58 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 Bid Alternate A is awarded in addition to the base bid. Adding indirect costs in the amount of 23% brings total project costs to $1,159,503.26.
 
Per the final plans and specifications, estimated construction costs were $1,165,015.80. The low bid is 19% less than the engineer’s estimate, primarily due to lower than estimated bituminous paving and concrete cost.
 
Funding sources for these improvements includes a mix of Pavement Management Funds, Stormwater Funds, Public Improvement Revolving Funds, and budgeted funds from the 2020 amended mill and overlay improvements.
 

• Pavement Management Funds = $580,186.18
• Stormwater Funds = $235,144.98
• Public Improvement Revolving Funds = $94,172.10
• 2020 Budgeted Funds = $250,000.00
• Total Project Costs = $1,159,503.26

Based on discussions with the Public Works Committee, the alternate bid work is proposed to be funded using the PIR fund. The committee felt this work, if awarded, should not be funded through the pavement management fund. The storm sewer work associated with the bid alternate is proposed to be funded using stormwater funds.

Bolton & Menk proposes to provide construction staking in a total not-to-exceed amount of $3,250 for the base bid, and $6,240 for the base bid plus the alternate bid. 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.
 
Plans and specifications were prepared in-house as part of Staff’s normal duties.
 
Outside costs incurred to date as engineering indirect costs include:

• $4,064.00 for Chosen Valley Testing, Inc. to prepare the Geotechnical Exploration and Engineering Review
• $4,860.00 for Bolton & Menk, Inc. to collect topographic survey

Staff recommends Alternative #1. Awarding the base bid plus bid alternate A will provide the greatest level of safety to the traveling public, to private commercial trucks that use the east end of McKinley Street, including trash collection trucks and semis, and to City vehicles including snow plows and public safety vehicles. Constructing the cul-de-sac will allow these vehicle to safely turn around using the cul-de-sac, which is located fully within City-owned right of way, instead of backing up. Awarding bid alternate A will also allow the City's utility vehicle better access to the sanitary sewer trunk line located just east of the proposed cul-de-sac.

Motion to adopt Resolution #21-106 accepting bids and awarding a construction contract for Business Park 95 Street Reconstructions, Improvement Project #21-03, to North Valley, Inc. for the total bid in the amount of $942,685.58.