Consider Award of Contract for City Improvement Project #11-21; Armstrong and Bunker Lake Boulevard Intersection Signalization

As part of the COR Regional Roadway Improvements associated with the Joint Powers Agreement (JPA) with Anoka County, the City was required to be the lead agency for the reconstruction of Armstrong Boulevard, similar to the already completed Ramsey and Sunfish Lake Boulevards, from TH 10 to the north.  The Armstrong Boulevard improvements were scheduled for construction in 2009; however during the plan approval process in 2008, Council directed staff to investigate the option of constructing an overpass instead of the proposed interim improvements.  On March 10, 2009 the City Council approved a revision to the JPA with Anoka County, and City and County staff began studying the options for an Armstrong Boulevard interchange over the BNSF tracks and TH 10.

The County requested as part of the JPA revision that the City continue to move forward with planned improvements at the Armstrong Boulevard and Bunker Lake Boulevard intersection as a 2010 construction project, which would include the installation of traffic signals, turn lanes and concrete medians.  Council authorized the acquisition of properties associated with this project on January 12, 2010.  Due to the unknown location of the TH 10 interchange, and its effects on the existing Armstrong Boulevard alignment, the signalization of the Bunker Lake and Armstrong Boulevard intersection was delayed.  Now that it has been determined that the existing intersection will remain in its current location this project can now be initiated.

In the fall of 2010 staff began reviewing the Legacy Christian Academy (LCA) development proposal for a pre-K through 12 school project to be located west of Armstrong Boulevard on a roadway extension of Bunker Lake Boulevard.  On September 23, 2010 a petition was received requesting utility and roadway improvements to serve this project.  The petition was accepted by the City Council on October 12, 2010, and Bolton & Menk was awarded a contract to undertake the preparation of the feasibility study.

The feasibility study for the LCA improvements was accepted by the Council on November 9, 2010, and the public hearing was held on December 14, 2010.  The direction of Council at that time was to approve the feasibility study and undertake the 429 assessment process to design and construct the required LCA development improvements in conjunction with the Armstrong/Bunker signal project.  The Council directed LCA improvements included the extension of sanitary sewer and watermain, the westerly extension of Bunker Lake Boulevard to Puma Street (as a reduced/temporary section) with storm sewer and a bituminous trail, a paved Puma Street with a bituminous trail, and a bituminous trail along Armstrong Boulevard from Bunker Lake Boulevard to Alpine Drive.

A majority of the project costs from the feasibility study will be special assessed to the benefited properties within the ALPHA DEVELOPMENT subdivision, of which LCA is Lot 1, Block 1.  In addition to the required Regional Roadway Improvements for the COR (intersection signalization), some of the items identified in the feasibility study will be paid by the City; specifically any extra utility costs that will serve the larger service area to the north and west of the development (to be paid utilizing the appropriate utility funds), a trail along the west side of Armstrong Boulevard from Bunker Lake Blvd to Alpine Dr. (utilizing MSA funds), and a portion of the Puma St. paving (under the City's dirt road elimination policy).

Council authorized the solicitation of bids on April 12, 2011 bids, and bids were opened on May 16th.  The low bid received was the basis for negotiations with LCA to finalize the development and assessment agreements, and agree on the overall funding splits for the project.  Council approved the final development and assessment agreements on May 17, 2011, and LCA successfully closed on the property and executed all required agreements on May 20, 2011.  Staff is now requesting the award of contract for the entire improvement project so that construction implementation can begin.

Overall there were 12 total bids received on the project, and the attached summary and tabulation shows the breakdown and analysis.

Staff recommends award of contract for City improvement project #11-21; Armstrong and Bunker Lake Boulevard Intersection Signalization, to Douglas-Kerr Underground, LLC in the amount of $3,458,170.43.

Staff further recommends that the City Council authorize the Public Works Director to be able to approve change orders in amounts less than $15,000.  All change orders will be brought back to the Council as an update prior to finalizing the project, but this would allow for timely decisions that would keep the project on schedule should issues be discovered during construction activities.

The City's responsibility for the intersection signalization (estimated at $2,775,798.57) was a requirement of the COR Regional Roadway Improvements and was included in the CIP with GO Bonding identified as the funding source.  They are now proposed to be funded by MSA revenue bonds and contributions from the appropriate City utility enterprise funds.

The required LCA development improvements (estimated at $1,701,077.34) are to be funded with special assessment bonds and assessed against the benefiting properties, consistent with the recently approved development assessment agreement (see attached).

Motion to approve Resolution 11-05-XXX awarding a contract for City project #11-21, Armstrong and Bunker Lake Boulevard Intersection Signalization to Douglas-Kerr Underground, LLC in the amount of $3,458,170.43.

-and-

Motion to allow the Public Works Director to approve project change orders in amounts less than $15,000.