Adopt Resolution #15-06-147 Accepting Bids and Awarding a Contract for Garnet Street and 168th Avenue Reconstruction, Improvement Project #13-10

Purpose:
The purpose of this case is to adopt Resolution #15-06-147 accepting bids and awarding a contract for Garnet Street and 168th Avenue Reconstruction, Improvement Project #13-10.

Background:
City of Ramsey Improvement Project 13-10 proposes to reconstruct two paved street segments including Garnet Street between 167th Street and the north plat line of Now & Then Estates, and 168th Avenue between Garnet Street and the cul-de-sac to the west. The segment of Garnet Street to be reconstructed measures approximately 1,350 feet in length, and the segment of 168^th Avenue NW west of Garnet Street measures approximately 670 feet in length. The total length of these two street segments is approximately 2,020 linear feet, or 0.38 miles. A map showing the location and scope of the proposed improvements along both street segments is attached as Figure 1.

Existing Conditions
Both streets were constructed in 1988 using bituminous pavement and curbing. The existing soils in this area are predominantly composed of a mixture of silty sands and clays which does not provide good structural support for pavements.  No storm sewer or public utilities exist under the streets, with the exception of the north and south ends of Garnet Street where trunk water and sanitary sewer stubs exist, and a storm sewer culvert that exists under Garnet Street just north of 168^th Avenue.  Both streets have received one sealcoat application in 2006. Since both streets are relatively flat they are not able to efficiently shed stormwater runoff, resulting in stormwater runoff pooling on the pavement for extended periods of time which then strips oil from the pavement leading to accelerated degradation of the pavement.
 
Both streets have a Pavement and Surface Evaluation Rating (PASER) of 1 and are therefore among the worst streets in the City in terms of pavement condition. In fact, several areas of Garnet Street no longer have bituminous pavement and are instead paved with class 5 aggregate to allow the streets to remain in passable condition. Then each spring when the ground thaws the streets becomes extremely difficult to navigate and maintain due primarily to the poor underlying soils which become unstable when saturated with groundwater.

Proposed Improvements
Subgrade corrections are proposed along both street segments to provide a uniform, stable subgrade base for the new pavement sections, thereby ensuring the new pavement sections can achieve their maximum life with minimal maintenance.  The subgrade corrections are proposed to consist of excavating 3-feet of the existing unsuitable subgrade materials and backfilling the voids with clean imported select granular borrow. Per the adopted Special Assessments Policy, the cost to correct unsuitable subgrade soils is not an eligible special assessment cost so these costs will be paid in full with City funds. Subgrade corrections can carry significant costs but in this instance staff believes the cost is justified as it will ensure the City will receive the maximum life from the reconstructed street while minimizing maintenance costs over the life of the street.

Both streets are proposed to be reconstructed to match the existing widths of 31-feet from back-of-curb to back-of-curb. However, concrete curb and gutter is proposed along both streets to better facilitate drainage and to protect the edges of the new pavement. Storm sewer is also proposed to be constructed to better facilitate drainage.

The construction of 6-foot wide concrete sidewalks within City right-of-ways along the east side of Garnet Street and the north side of 168^th Avenue is also proposed. The new sidewalk will connect the existing 6-foot concrete sidewalk east of Garnet Street between the dead-end sidewalk stub south of 169^th Lane and the existing concrete sidewalk north of 167^th Avenue.  Since these sidewalks connect to the regional bituminous trail west of CSAH 5, adding the proposed sidewalk will close a significant gap in the existing pedestrian facilities in this developing area.

Public utilities are also proposed for several reasons:
 

1. Extending 8-inch ductile iron pipe (DIP) watermain under Garnet Street will create a looped (connected) system which benefits the City by allowing the water supply system to be maintained more efficiently.
2. Extending 8-inch DIP watermain under 168^th Avenue will provide a looped water supply system upon connection to the 8-inch DIP watermain being installed with Brookfield 6^th Addition with 168^th Avenue.
3. Looped systems also allow smaller areas to be isolated during watermain maintenance operations thereby removing fewer properties from service.
4. The proposed street improvements have a design life of 60-years and since adjacent properties were developed over 20 years ago their septic systems and wells may begin failing soon prompting requests to connect to City utilities.  Therefore, if utilities are not installed with the project the street(s) could need to be reconstructed well before their useful life is over.
5. During the January 29^th public information meeting, numerous property owners voiced an interest in connecting to City utilities, either now or in the near future.

Staff therefore proposes to construct 8-inch DIP watermain under both Garnet Street (stubs exist at both ends of the street segment to be reconstructed) and 168^th Avenue, with 1” copper water service lines to each property.  And 8-inch PVC trunk gravity sanitary sewer is also proposed, including 4” PVC sewer service lines to each property. Only one set of services is proposed to be installed to each property as there are too many unknowns regarding future lot splits to consider installing additional services at this time.

Storm sewer improvements are also proposed along both streets, including replacement of the existing culvert under Garnet Street north of 168^th Avenue, and the existing ditches both sides of Garnet street are proposed to be re-graded.  A permit application is pending with the Lower Rum River Watershed Management Organization for their next meeting on June 18^th.

Public Input
On January 29^th, a public information meeting was held at City Hall to solicit input on the project from property owners with access to these streets and therefore proposed to be assessed for a portion of the costs. Owners from 7 of the 12 assessable properties attended the meeting and in general were supportive of the project.  However, several questions surfaced that staff was not able to fully address at the meeting, but any questions that could not be answered at the meeting were followed up on afterwards by providing additional or updated information via email, by meeting with them at City Hall, or by visiting them at their property to discuss their concerns. 
 
No public comment was received at the February 10^th Public Hearing.
 
One or two unresolved issues remain which staff will discuss with Council to ensure staff has clear direction moving forward to allow these issues to be resolved before construction starts.

Observations:
A total of 8 bids were received and opened on June 3^rd.  The project was bid using a base bid for the reconstruction of Garnet Street and 168^th Avenue, plus two alternate bids.  Bid alternate #1 is for the permanent construction of the Feldspar Street cul-de-sac, and bid alternate #2 is for constructing a temporary cul-de-sac at the west end of 168^th Avenue in the event the Brookfield 6^th Addition development was not under construction at the time this project started.  Because the Brookfield 6^th Addition is scheduled to begin construction before this project, alternate bid #2 will not be required and should therefore be dismissed.
 
The bid summary is below, and is included in the attached resolution.  If Council wishes to accept bid alternate #1 for constructing the permanent cul-de-sac on Feldspar Street, a contract should be awarded to Kuechle Underground with a low bid of $823,126.51 (compared to Douglas-Kerr’s bid of $827,565.61).  If Council does not wish to construct the permanent cul-de-sac on Feldspar Street, the low bidder would then be Douglass-Kerr Underground with a base bid of $787,330.49.
 
 

CONTRACTOR	BASE BID	ALT. 1 BID	ALT. 2 BID	TOTAL BID
Kuechle Underground	$790,449.61	$32,676.90	$35,748.76	$858,875.27
Douglas-Kerr Underground	$787,330.49	$40,235.12	$35,687.66*	$863,253.27*
Dave Perkins Contracting	$815,630.75	$32,229.00	$46,158.00	$894,017.75
Dressel Contracting	$997,870.08*	$43,110.71	$56,944.28*	$1,097,925.07*
R L Larson Excavating	$1,052,785.00	$37,309	$49,096.00	$1,139,190.00
Northwest Asphalt	$1,040,168.58	$51,517.50	$52,186.40	$1,143,872.48
Redstone Construction	$1,068,883.16	$42,423.92	$44,067.00	$1,155,374.08
Northdale Construction Co.	$1,119,883.99	$42,396.28	$54,130.85	$1,216,411.12
Engineer’s Estimate	$954,468.75	$30,473.25	$42,521.00	$1,027,463.00

*= adjusted bid price
 
Alternatives:
Alternative Action #1 – Motion to adopt Resolution #15-06-147 Accepting Bids and Awarding a Contract for Garnet Street and 168th Avenue Reconstruction, Improvement Project #13-10, including the base bid plus alternate bid #1.

Alternative Action #2 – Motion to adopt Resolution #15-06-147 Accepting Bids and Awarding a Contract for Garnet Street and 168th Avenue Reconstruction, Improvement Project #13-10, including only the base bid.

Alternative Action #3 – Motion to deny adoption of Resolution #15-06-147 at this time.

This improvement project, which is included in the City’s 5-year Capital Improvement Plan for construction in 2015, is proposed to be funded using a combination of street reconstruction and overlay bond funds, special assessments to benefiting properties, and sewer, water and stormwater utility funds.

Per the adopted Special Assessments Policy, the City may consider assessing up to 25% of applicable street reconstruction project costs. However, based on the existing large lot sizes (2+ acres) and street frontages (200+ linear feet) along these streets, the preliminary special assessment proposed in the Feasibility Report is set at $6,500 per lot which totals $78,000 for the 12 single-family residential properties with direct access onto the improved street segments.

The Assessment Hearing is scheduled for October 13^th.  The results of the special assessment benefit appraisal consultation will be available for this hearing to verify that the preliminary assessment amount does not exceed the benefit to these properties.