Adopt Resolution 15-08-194 Accepting Bids and Awarding Contract for Ridgepoint Residential Development Improvements, Improvement Project #15-21

Purpose:
The purpose of this case is to accept bids and award a contract for constructing the Ridgepoint seven unit single-family residential development improvements, Improvement Project #15-21.

Background:
Village Bank owns real property in the southeast corner of the City of Ramsey and wishes to develop the property into seven single-family residential lots, known as Ridgepoint. Village Bank has requested that the City undertake construction of the necessary public improvements in 2015 and specially assess all costs to them.
 
The proposed development generally involves extending Rivlyn Avenue approximately 500 feet to the east/northeast and extending City sewer and water utilities under Rivlyn Avenue to serve the seven new single-family residential lots.  Significant subgrade corrections are also proposed.
 
The new extension of Rivlyn Avenue is proposed to match the existing street section with a 32 foot wide urban street section that is centered within a 60 foot right-of-way, which will be deeded to the City.
 
Storm sewer, sanitary sewer and watermain utilities are also proposed to be constructed with the project.  Watermain and sanitary sewer utility extensions are also proposed to serve two parcels within the City of Anoka, which the Anoka City Council approved payment for in the not to exceed amount of $130,000 as per the amended Joint Powers Agreement between the City of Anoka and the City of Ramsey.  The City of Anoka has agreed to issue payment to the City of Ramsey following construction of the utility extensions.
 
The plans also propose to reconstruct a portion of the Mississippi River Trail through a realigned corridor in the same general alignment and vicinity.
 
Village Bank retained Hakanson Anderson to draft final plans and specifications for the public improvements.  On May 26^th the City Council accepted final plans and specifications and authorized advertisements for bids.  On July 1^st bids were received, opened, checked for errors and omissions, and tabulated, and the following bids comply with the advertisement for bids.
 

CONTRACTOR	TOTAL BID
Douglas Kerr Underground, LLC	$544,925.55
Dave Perkins Contracting, Inc.	$553,444,40
Kuechle Underground, Inc.	$570,230.72
North Pine Aggregate, Inc.	$650,790.80
New Look Contracting, Inc.	$755,286.00
Peterson Companies	$861,423.55
Engineers Estimate	$469,372.50

  
Of the six bids received, the lowest responsible bid was submitted by Douglas Kerr Underground, LLC in the amount of $544,925.55.  If a contract for construction is authorized, staff will immediately contact Douglas Kerr Underground to notify them that they were awarded the contract and to initiate execution of the contract and issuance of the required bonds and insurance.

Observations:
The lowest bid received was about 15% higher than the engineer’s estimate.  This, among other reasons, prompted Village Bank to request additional funding from the City of Anoka.  Since the City of Anoka approved the banks request, Village Bank believes the Ridgepoint project is viable and therefore wishes to complete construction in 2015.  Douglas Kerr Underground has indicated they can complete construction in 2015.

Alternatives:
Alternative #1 – Motion to adopt Resolution #15-08-194 accepting bids and awarding a contract for constructing the Ridgepoint development improvements, Improvement Project #15-21.

Alternative #2 – Motion to deny adoption of Resolution #15-08-194 at this time.

The lowest responsible bid from Douglas Kerr Underground, LLC is $544,925.55. The City will initially fund the improvements using the Public Improvement Revolving Fund, then Village Bank will pay the City back in full over a period of three years via the approved Assessment Agreement.  And per the amended Joint Powers Agreement, the City of Anoka will reimburse the City of Ramsey up to $130,000 for construction of the public utilities.