7.3.
CC Regular Session
- Meeting Date:
- 06/13/2023
- By:
- Bruce Westby, Engineering/Public Works
Information
Title:
Adopt Resolution #23-128 Accepting Bids and Awarding Contract for Improvement Project #23-17; COR Tree Clearing
Purpose/Background:
Purpose:
The purpose of this case is to adopt Resolution #23-128 accepting bids and awarding a construction contract for Improvement Project #23-17; COR Tree Clearing.
Background:
Attached is The COR Analysis Update and the COR Infrastructure Design Services Proposal, both prepared by Bolton and Menk, Inc.
On February 21, 2023, the Public Works Committee (PWC) identified the following immediate COR Infrastructure priorities;
During the February 28, 2023, City Council work session, Council confirmed these priorities by consensus. Minutes from this meeting are also attached.
Based on the identified priorities, Bolton and Menk, Inc. prepared the attached COR Infrastructure Design Services Proposal to identify the associated scope of services and estimated costs required for design services, as well as estimated construction costs.
Per the attached proposal, significant progress can be made in 2023 to achieve the identified priorities in the near future. More specifically, in 2023 the following work can be completed;
The purpose of this case is to adopt Resolution #23-128 accepting bids and awarding a construction contract for Improvement Project #23-17; COR Tree Clearing.
Background:
Attached is The COR Analysis Update and the COR Infrastructure Design Services Proposal, both prepared by Bolton and Menk, Inc.
On February 21, 2023, the Public Works Committee (PWC) identified the following immediate COR Infrastructure priorities;
- Grading, lining and installing storm sewer for the Waterfront stormwater pond,
- Filling low-lying COR properties using fill from the Waterfront pond excavation,
- Reconstructing Zeolite Street,
- Reconstructing and realigning the north end of Center Street, and
- Constructing Ramsey Parkway between the Sunwood Drive roundabout and Willemite Street.
During the February 28, 2023, City Council work session, Council confirmed these priorities by consensus. Minutes from this meeting are also attached.
Based on the identified priorities, Bolton and Menk, Inc. prepared the attached COR Infrastructure Design Services Proposal to identify the associated scope of services and estimated costs required for design services, as well as estimated construction costs.
Per the attached proposal, significant progress can be made in 2023 to achieve the identified priorities in the near future. More specifically, in 2023 the following work can be completed;
- Grading, lining and installing storm sewer for the Waterfront stormwater pond,
- Filling low-lying COR properties using fill from the Waterfront pond excavation,
- Design and prepare plans and specifications for Zeolite Street,
- Design and prepare plans and specifications for the north end of Center Street, and
- Design and prepare plans and specifications for Ramsey Parkway between the Sunwood Drive roundabout and Willemite Street.
The first step in this process is to remove unwanted trees from The COR to allow mass grading operations to begin.
On May 9th, the City Council adopted Resolution #23-107 approving Bolton & Menk’s COR Infrastructure Design Services Proposal and authorizing advertisements for bids for Improvement Project #23-17, COR Tree Clearing.
A total of five (5) bids were publicly received, opened and tabulated on June 6, 2023, and the following bids were found to comply with the approved plans and specifications and advertisements for bids.
The low bidder has requested to withdraw their bid due to misinterpretation of project plans and specifications. Per Article 15.03 (attached to Bolton & Menk’s bid award recommendation memo), Novco, Inc. provided written notice of their intent to withdraw their bid (also attached to memo). Novco also requested that the City consider not cashing their Bid Bond as a result of the misinterpretations. Per Article 15.03, the Bid Bond shall be returned to the Bidder. After a review of the bids, we concur that there was a misinterpretation on the part of the low bidder, given the significant difference between the low bid and the four other bids received.
Therefore, the bid of Reshetar Systems, Inc. of Anoka Minnesota, in the amount of $287,000.00 for the total bid for construction of the improvements in accordance with the approved plans and specifications and advertisements for bids, was the lowest responsible bid received. Upon adopting Resolution #23-218, the construction contract will be awarded to Reshetar Systems, Inc. in the amount of $287,000.00.
The next Council action that would be required would be to authorize bids for mass grading the COR, including grading the Waterfront pond and filling the low-lying COR parcels. These bids are anticipated to occur in July, allowing all mass grading work to be completed from August through October, with cleanup and dormant seeding occurring in early November. During this work, Zeolite Street will need to be closed to traffic.
Design and plan preparation for the three segments of Zeolite Street, Center Street, and Ramsey Parkway identified above are underway and will be complete this Fall. Construction of these street segments can then occur in 2024, or later.
On May 9th, the City Council adopted Resolution #23-107 approving Bolton & Menk’s COR Infrastructure Design Services Proposal and authorizing advertisements for bids for Improvement Project #23-17, COR Tree Clearing.
A total of five (5) bids were publicly received, opened and tabulated on June 6, 2023, and the following bids were found to comply with the approved plans and specifications and advertisements for bids.
| Company | Bid |
| Novco, Inc | $133,500.00 |
| Reshetar Systems, Inc. | $287,000.00 |
| Urban Companies | $334,000.00 |
| Husky Construction, Inc. | $355,569.94 |
| US SiteWork | $399,300.00 |
| Engineer’s Estimate | $359,000.00 |
The low bidder has requested to withdraw their bid due to misinterpretation of project plans and specifications. Per Article 15.03 (attached to Bolton & Menk’s bid award recommendation memo), Novco, Inc. provided written notice of their intent to withdraw their bid (also attached to memo). Novco also requested that the City consider not cashing their Bid Bond as a result of the misinterpretations. Per Article 15.03, the Bid Bond shall be returned to the Bidder. After a review of the bids, we concur that there was a misinterpretation on the part of the low bidder, given the significant difference between the low bid and the four other bids received.
Therefore, the bid of Reshetar Systems, Inc. of Anoka Minnesota, in the amount of $287,000.00 for the total bid for construction of the improvements in accordance with the approved plans and specifications and advertisements for bids, was the lowest responsible bid received. Upon adopting Resolution #23-218, the construction contract will be awarded to Reshetar Systems, Inc. in the amount of $287,000.00.
The next Council action that would be required would be to authorize bids for mass grading the COR, including grading the Waterfront pond and filling the low-lying COR parcels. These bids are anticipated to occur in July, allowing all mass grading work to be completed from August through October, with cleanup and dormant seeding occurring in early November. During this work, Zeolite Street will need to be closed to traffic.
Design and plan preparation for the three segments of Zeolite Street, Center Street, and Ramsey Parkway identified above are underway and will be complete this Fall. Construction of these street segments can then occur in 2024, or later.
Notification:
Plans for the proposed COR tree clearing improvements were advertised for bids in the Anoka Union Herald on Friday, May 12, and Friday, May 19, 2023.
Time Frame/Observations/Alternatives:
Observations:
Trees must be cleared from The COR to allow identified COR properties to be graded and filled in 2023 using excavated materials from the Waterfront stormwater pond. Mass grading work will commence this Summer under a separate project allowing all proposed infrastructure improvements to be completed by the end of November. Again, Staff contacted several contractors to ensure they have the capacity to complete the COR mass grading work in 2023.
Alternatives:
Alternative #1: Adopt Resolution #23-128 accepting bids and awarding a construction contract for Improvement Project #23-17; COR Tree Clearing.
Alternative #2: Motion of other.
Trees must be cleared from The COR to allow identified COR properties to be graded and filled in 2023 using excavated materials from the Waterfront stormwater pond. Mass grading work will commence this Summer under a separate project allowing all proposed infrastructure improvements to be completed by the end of November. Again, Staff contacted several contractors to ensure they have the capacity to complete the COR mass grading work in 2023.
Alternatives:
Alternative #1: Adopt Resolution #23-128 accepting bids and awarding a construction contract for Improvement Project #23-17; COR Tree Clearing.
Alternative #2: Motion of other.
Funding Source:
The attached proposal from Bolton and Menk identifies the following not-to-exceed estimated costs. As noted on page 5 of the attached proposal, costs will be less if individual projects are combined and constructed as larger projects and not individually.
Construction-related services such as staking, administration, and observation are not included in the above design services cost estimate. When construction of the identified improvements occurs, a separate construction services proposal will be submitted by BMI.
Proposed COR infrastructure project funding sources include;
Finance Director Lund and the City’s financial consultant, Ehlers, recommend using tax increment bonds for the approximate $7,000,000 of identified COR infrastructure improvements, which includes the HY-10 Ramsey Improvements (excluding municipal utilities) and the COR Infrastructure Improvements. Attached is a 15-year tax increment bond run provided by Ehlers. According to Ehlers, the City will have the annual $640,000 needed to make the necessary debt service payments due to increment generated by various developments within The COR. The 15-year bond term will expire before 2040.
Issuing a tax increment bond requires increment to be available in the amount of 20% of the bond. The City does not currently have $7M in the TIF 14 district and the issuance of debt allows the city the flexibility to keep the current TIF 14 funds (approximately $2M for other improvements in the future). The issuance of debt is a cleaner process as it avoids the need for the set-up of internal loans from other funding sources, tracking these loans with not only pay back when increment becomes available, but also tracking interest.
While bids were advertised, staff reviewed the required tree replacement process and costs per City code. In summary, the required mitigation will involve planting 174 trees, or paying $21,750 into the City Forestry Fund. According to the COR report, 210 trees will ultimately be planted in boulevard areas of COR streets, which will exceed the required mitigation. And if the City counts the trees to be planted in the Waterfront area, the number of trees planted would further exceed the required mitigation. Staff therefore does not anticipate paying any funds into the Forestry Fund for tree replacements.
Attached to this case is a construction services proposal from Bolton & Menk at a proposed not-to-exceed fee in the amount of $7,075.00.
City staff will inspect construction and process pay requests.
- Design services costs for all identified improvements = $548,181
- Construction costs for identified 2023 improvements (not including streets and associated storm sewer, sidewalks, trails, sanitary sewer and watermain) = $5,874,000
Construction-related services such as staking, administration, and observation are not included in the above design services cost estimate. When construction of the identified improvements occurs, a separate construction services proposal will be submitted by BMI.
Proposed COR infrastructure project funding sources include;
- TIF 14 Bonds (street, sidewalk and trail costs)
- Stormwater Funds (stormwater management costs)
- Sanitary Sewer Funds (sanitary sewer costs)
- Watermain Funds (watermain costs)
Finance Director Lund and the City’s financial consultant, Ehlers, recommend using tax increment bonds for the approximate $7,000,000 of identified COR infrastructure improvements, which includes the HY-10 Ramsey Improvements (excluding municipal utilities) and the COR Infrastructure Improvements. Attached is a 15-year tax increment bond run provided by Ehlers. According to Ehlers, the City will have the annual $640,000 needed to make the necessary debt service payments due to increment generated by various developments within The COR. The 15-year bond term will expire before 2040.
Issuing a tax increment bond requires increment to be available in the amount of 20% of the bond. The City does not currently have $7M in the TIF 14 district and the issuance of debt allows the city the flexibility to keep the current TIF 14 funds (approximately $2M for other improvements in the future). The issuance of debt is a cleaner process as it avoids the need for the set-up of internal loans from other funding sources, tracking these loans with not only pay back when increment becomes available, but also tracking interest.
While bids were advertised, staff reviewed the required tree replacement process and costs per City code. In summary, the required mitigation will involve planting 174 trees, or paying $21,750 into the City Forestry Fund. According to the COR report, 210 trees will ultimately be planted in boulevard areas of COR streets, which will exceed the required mitigation. And if the City counts the trees to be planted in the Waterfront area, the number of trees planted would further exceed the required mitigation. Staff therefore does not anticipate paying any funds into the Forestry Fund for tree replacements.
Attached to this case is a construction services proposal from Bolton & Menk at a proposed not-to-exceed fee in the amount of $7,075.00.
City staff will inspect construction and process pay requests.
Recommendation:
Staff recommends alternative #1.
If the City Council decides to award the project, Bolton & Menk recommends awarding the contract to Reshetar Systems, Inc. in the amount of $287,000.00.
If the City Council decides to award the project, Bolton & Menk recommends awarding the contract to Reshetar Systems, Inc. in the amount of $287,000.00.
Outcome/Action:
Adopt Resolution #23-128 accepting bids and awarding a construction contract for Improvement Project #23-17; COR Tree Clearing.
Attachments
- Resolution 23-128
- BMI Construction Services Proposal
- COR Area Analysis Update
- BMI Bid Award Memo
- 02.21.23 PWC minutes
- 02.28.23 CCWS minutes
- BMI COR Design Services Proposal
- Ehlers TIF Bond run
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Brian Hagen | Brian Hagen | 06/08/2023 11:41 AM |
- Form Started By:
- Bruce Westby
- Started On:
- 06/06/2023 09:09 AM
- Final Approval Date:
- 06/08/2023