Adopt Resolution #16-10-193 Accepting Bids and Awarding Contract for Improvement Project #16-98, Central Park Parking Lot Improvements

Purpose:
The purpose of this case is to consider adopting attached Resolution #16-10-193 accepting bids and awarding a contract for construction for Improvement Project #16-98, Central Park Parking Lot Improvements.

Background:
On September 13th, 2016, the City Council accepted plans and specifications and authorized advertising for bids for Improvement Project #16-98, Central Park Parking Lot Improvements.
 
As Parks and Assistant Public Works Superintendent Mark Riverblood noted in his September 13th Council case, this project has been carried forward within the Capital Improvement Program for at least the last 10-years. The essence of the project has been to add more parking, improve the flow of vehicular traffic, and provide a better distribution of parking stalls within the park. Attempts have been made to acquire additional land to the east of the existing park for a parkway, south to 161st Avenue, or to expand the park—but have been as yet unsuccessful. The attached plans provide for 70 additional parking stalls, better pedestrian movement (by a trail from the playground and large parking area to the northeast portions of the park), and are consistent with future plans by virtue of elimination of the temporary cul-de-sac and extension of the parkway at such time as land becomes available to the city.

Plans are attached for reference.

Advertisements for bids were published in the City’s official newspaper, the Anoka County Union Herald, and in Finance and Commerce, on September 16^th and 23^rd, 2016.
 

Observations:
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 October 24th.  Construction of the proposed improvements is anticipated to take up to 8 weeks to complete, depending on weather and availability of materials.  Considering the location of the project, work could begin this fall and be completed next spring, or all work could be completed in the spring of 2017.  The specifications include a substantial completion date of July 1, 2017, and a final completion date of August 1, 2017.

A total of seven bids were received and were publicly opened at 10:30 am Friday, October 7^th.  All bids were competitive, and were checked for errors and omissions.  Five errors were found and corrected. The errors were small and did not affect the ordering of the bid amounts as reflected in the following bid results table.
 

CONTRACTOR	TOTAL BID
North Valley, Inc.	$238,992.56
Veit & Company, Inc.	$241,685.62
New Look Contracting, Inc.	$242,509.00
Hardrives, Inc.	$246,077.90
Park Construction Company	$271,967.27
Valley Paving, Inc.	$273,434.13
U.S. SiteWork, Inc.	$274,247.58
Engineer’s Estimate	$198,974.00

 
The bid of North Valley, Inc. of Nowthen, Minnesota, in the amount of $238,992.56 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.  North Valley, Inc.’s bid is about 20% higher than the engineer’s estimate of $198,974.  The primary differences between Staff’s estimated costs and North Valley’s bid are related to bituminous pavement ($13,807.81 less), class 5 aggregate base ($9,294.45 less), and concrete curb and gutter ($8,126.22).
 
Alternatives:
Alternative #1 – Motion adopting Resolution #16-10-193 accepting bids and awarding a contract for construction for Improvement Project #16-98, Central Park Parking Lot Improvements, and authorizing an additional expenditure up to $15,000 from the Park Improvement Trust Fund for irrigation repairs and rain garden landscaping.

Alternative #2 – Motion denying adoption of Resolution #16-10-193 at this time.
 

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

Total project costs based on the low bid for this project is $293,960.85 which includes 23% indirect costs for administration, engineering, legal and finance costs.  Staff is also requesting Council authorization for an additional $15,000 for necessary irrigation system repairs and for landscaping the rain garden within the new parking area.  These costs were not included in the project in the event Staff has the capacity to complete some of the work in-house to reduce overall project costs.
 
All project costs are proposed to be funded through the Park Improvement Trust Fund, which will have a balance of approximately $1.8M after 2016 Parks Capital Improvement projects are completed.

Staff recommends alternative #1 accepting bids and awarding a contract for construction for said improvements to North Valley, Inc. of Nowthen, Minnesota, in the amount of $$238,992.56.
 

Adopt or deny adoption of Resolution #16-10-193 accepting bids and awarding a contract for construction for Improvement Project #16-98, Central Park Parking Lot Improvements, and authorizing an additional expenditure up to $15,000 from the Park Improvement Trust Fund for irrigation repairs and rain garden landscaping.