Adopt Resolution #16-08-144 Accepting Bids and Awarding Contract for Improvement Project #16-95, Zeolite Street Storm Sewer Extension

Purpose:
The purpose of this case is to consider adopting Resolution #16-08-144 accepting bids and awarding a contract for construction for Improvement Project #16-95, Zeolite Street Storm Sewer Extension.

Background:
During the development of Ramsey Town Center 8^th Addition in 2006, the trunk storm sewer system along the west side of Zeolite Street from 147^th Lane to the south side of Bunker Lake Boulevard was installed.  This trunk storm sewer system was designed to convey storm water drainage from Ramsey Town Center 8^th, 9^th, and 10^th Additions, as well as additional areas to the north, to “Lake Ramsey” east of Zeolite Street and south of Bunker Lake Boulevard.  The last few hundred feet of this trunk line under Bunker Lake Boulevard and into Lake Ramsey was proposed to be constructed with 73” Arch Reinforced Concrete Pipe (A-RCP) storm sewer.  Attached is a plan sheet from RTC 8^th Addition showing a portion of the proposed 73” A-RCP storm sewer alignment and profile north of Bunker Lake Boulevard.  However, this plan sheet does not show the entire portion of trunk storm sewer that was constructed in 2006 extending to the south side of Bunker Lake Boulevard.  The City never received as-built record plans for RTC 8^th Addition so this is the only plan sheet available.
 
While the 73” A-RCP storm sewer was being constructed, questions arose as to whether the remaining unconstructed portion of the 73” A-RCP trunk storm sewer outlet to Lake Ramsey should be down-sized to reduce construction costs.  While options were being considered, the end of the storm sewer pipe was covered with a sheet of plywood and the pipe and plywood were backfilled.  The housing market collapsed at this time so the outlet was not immediately needed.  The pipe was then covered with a plywood sheet and was buried without completing the outlet.  The plywood sheet eventually rotted and failed in 2012, at which time it was replaced with another sheet of plywood since the storm sewer was anticipated to be extended later that year, which then never occurred.
 
The 73” A-RCP storm sewer line incorporates an outlet pipe from the undeveloped triangular parcel in the northwest corner of the intersection of Bunker Lake Boulevard and Zeolite Street, more commonly known as COR Three North Commons.  After the 73” A-RCP storm sewer line fills with a little over a foot of stormwater runoff, the excess stormwater flows back out of the COR Three North Commons outlet pipe where it is then stored in a low area until it infiltrates into the ground.  The 73” A-RCP storm sewer pipe therefore typically has a foot or more of standing water in it, meaning the sheet of plywood blocking the end is continually wet which makes it even more prone to rotting.
 
On June 16, 2015, the Public Works Committee was asked to provide a recommendation to the City Council for completing an improvement project in 2015 to remove the plywood sheet and extend the 73” A-RCP storm sewer to Lake Ramsey.  Staff was concerned that if the plywood sheet failed again, a portion of Bunker Lake Boulevard could buckle.  Staff had estimated costs for this work at $175,000 and proposed to pay for the work using City Stormwater Utility Funds.  Following discussion, the Public Works Committee recommended that the proposed improvements not be completed until the outlet is needed for a specific purpose, thereby potentially reducing or eliminating City costs.  Such a purpose could include new development, in which case the developer may fund all or a portion of the work, or the reconstruction of Bunker Lake Boulevard, in which case project costs may be significantly reduced due to being constructed with a larger project.  A copy of the June 16, 2015 Public Works committee meeting minutes are attached.
 
Staff had prepared preliminary plans and specifications for the proposed improvements, along with an engineer’s estimate, prior to the June 16, 2015 Public Works Committee meeting.  Then following City Council approvals in 2016 related to development of the COR Three North Commons parcel, staff completed final plans and specifications as attached to this case.  As shown in the plans, the storm sewer outlet is not proposed to be down-sized to reduce construction costs as discussed in 2006 since doing so would remove the ability to provide future drainage for areas north of RTC 10^th Addition through the outlet, plus it is not considered to be good engineering practice to reduce pipe sizes downstream.

Advertisements for bids were published in the City’s official newspaper, the Anoka County Union Herald, and in Finance and Commerce, on July 29^th and August 5^th.

Observations:
This is the second of two cases being considered by Council this evening relative to development of the COR Three North Commons parcel.  Development of this parcel requires advance construction of the proposed storm sewer outlet.  It is also important to recognize that future development of other undeveloped parcels in this area of The COR will also require the proposed storm sewer outlet to be constructed in advance of development.
 
Once Council accepts bids and awards a construction contract, work may commence as soon as contract documents are executed and a Notice to Proceed is issued, which is anticipated to occur on or shortly after September 1^st.  Construction of the proposed improvements is anticipated to take 5 weeks or less to complete, depending on weather and availability of materials.  This should allow the storm sewer outlet to be operational by early October, allowing unimpeded development of the COR Three North Commons parcel and other parcels in this area of The COR.

A total of six bids were received and were publicly opened at 10 am Friday, August 19^th.  All bids were competitive, and were checked for errors and omissions, of which none were found.  The bid results are as follows.
 
 

CONTRACTOR	TOTAL BID
Kuechle Underground Inc.	$108,802.15
Dryden Excavating	$109,185.10
Douglas-Kerr Underground	$111,653.43
Penn Contracting, Inc.	$119,550.50
Dave Perkins Contracting Inc.	$121,962.00
Northdale Construction Company, Inc.	$129,995.96
Engineer’s Estimate	$122,534.50

 
The bid of Kuechle Underground Inc. of Kimball, Minnesota, in the amount of $108,802.15 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. 
 
Alternatives:
Alternative #1 – Motion adopting Resolution #16-08-144 accepting bids and awarding a contract for construction for Improvement Project #16-95, Zeolite Street Storm Sewer Extension.

Alternative #2 – Motion denying adoption of Resolution #16-08-144 at this time.

Plans and Specifications were prepared in-house as part of staff’s regular duties.

The low bid for construction of said improvements from Kuechle Underground Inc. is $108,802.15.  The total estimated project costs include another 23% in indirect costs for administrative (6%), engineering (15%), finance (1%), and legal (1%) fees.  This results in a total estimated project cost of $133,826.64 which are proposed to be funded through the Storm Water Utility Fund, which has a sufficient balance.

Staff recommends alternative #1 accepting bids and awarding a contract for construction for said improvements to Kuechle Underground Inc. of Kimball, Minnesota, in the amount of $108,802.15.

Adopt Resolution #16-08-144 accepting bids and awarding a contract for construction for Improvement Project #16-95, Zeolite Street Storm Sewer Extension.