Adopt Resolution #18-059 Accepting Bids and Awarding Contract for Stanhope Terrace Streets Reconstruction, Improvement Project #18-00

Purpose:
The purpose of this case is to adopt Resolution #18-059 accepting bids and awarding a contract for construction for Stanhope Terrace Street Reconstructions, Improvement Project #18-00.

Background:
Attached is a copy of the plans prepared by City staff for Improvement Project #18-00, Stanhope Terrace Street Reconstructions.
 
This project proposes to reconstruct three street segments within the Stanhope Terrace residential neighborhood including;

• Ute Street north of Alpine Drive through the cul-de-sac,
• 154^th Lane between Ute Street and Roanoke Street, and
• 153^rd Court west of Roanoke Street through the cul-de-sac.

These street segments total approximately 2,800 feet in length as shown on the title sheet of the attached plans.
 
Proposed improvements include removing existing bituminous curb and replacing it with B618 concrete curb and gutter, then reconstructing the existing bituminous pavement section using the Full Depth Reclamation (FDR) process.  The existing storm sewer system is in good condition and generally meets City design standards.  The only storm sewer work proposed is resetting the castings after replacing adjusting rings and re-grouting the insides of the catch basins.
 
Municipal sanitary sewer and water utilities do not exist in Stanhope Terrace, and the attached plans do not propose to install such utilities. 
 
On February 12, 2018, Council accepted final plans and specifications and authorized advertisements for bids.  On March 15, 2018, nine (9) sealed bids were received and were publicly opened and read aloud.  The bids were checked for errors and omissions, and were tabulated.  All bids were found to be competitive and favorable, complied with the advertisement for bids, and only one adjustment was required, that being to the bid of GMH Asphalt, Corp. which will not impact awarding a bid since their bid was the fourth lowest.  A summary of bids is below and in the attached resolution.
 

CONTRACTOR	TOTAL BID
North Valley, Inc.	$303,756.46
Douglas-Kerr Underground, LLC	$335,706.40
Asphalt Surface Technologies, Corp.	$336,595.45
GMH Asphalt, Corp.	$352,597.43
Omann Contracting Companies, Inc.	$353,300.16
Midwest Asphalt Services	$377,017.00
Hardrives, Inc.	$378,113.27
Park Construction Company	$405,318.27
Northwest Asphalt	$414,791.59
Engineer’s Estimate	$363,783.00

 
North Valley, Inc. of Nowthen, Minnesota, who provided a total bid of $303,756.46 for the construction of said improvements in accordance with the approved plans and specifications and advertisement for bids, is the lowest responsible bidder.  Their bid is $60,026.54, or 16.5% less than the engineer’s estimate of $363,783.00.
 
Following award of a contract, staff will immediately issue a Notice of Award to North Valley, Inc. to initiate execution of a contract and issuance of the required bonds and insurance.  The City Attorney will verify that the contract, bonds, and insurance are in proper legal form prior to execution of the contract. Once a contract is executed, staff will issue a Notice to Proceed and construction may then begin.  At this time, it is anticipated that construction will begin in early June.
 
A preconstruction meeting will also be conducted before construction begins. Staff will then contact all abutting property owners to provide updates on the proposed construction schedule and operations based on the Contractors input at the preconstruction meeting.

Substantial completion will occur by August 31 to allow school buses unimpeded access to their normal routes before the next school year begins. 
 
The Assessment Hearing is scheduled for October 9, 2018.

Advertisements for bids were published in the Anoka Union Herald and in Finance & Commerce on February 16 and 23, 2018.

Observations:
The proposed improvements should have a serviceable life of 60 years, assuming that proactive maintenance operations are performed regularly during the life of the improvements.
 
Impacts to private irrigation systems may occur during construction. Staff will notify property owners in writing of the pending construction as far in advance as possible to allow them time to move their irrigation system components away from the construction activities.  All costs to relocate private irrigation system components are the responsibility of the property owners.
 
As previously discussed, while preparing the Feasibility Report Staff found that the Ute Street cul-de-sac is not fully located within existing right-of-way, and that no public easements exist over the two “ears” outside City right-of-way. Staff has discussed this issue with the property owners on both sides of the cul-de-sac. Both property owners verbally agreed to grant the required roadway easements, which will allow the improvements to be constructed as proposed and maintained in perpetuity.  Staff anticipates providing easement agreements to both property owners the week of March 26th, and recording the easements by the end of April, well before construction begins.
 
Alternatives:
Alternative #1 – Motion to adopt Resolution #18-059 accepting bids and awarding a contract for construction for Stanhope Terrace Street Reconstructions, Improvement Project #18-00.

Alternative #2 – Motion to deny adoption of Resolution #18-059 at this time.

The low bid submitted by North Valley, Inc. of Nowthen, Minnesota, is $303,756.46.  After adding indirect costs for administrative (6%), engineering (15%), finance (1%), and legal (1%) costs, total project costs become $373,620.45.
 
For comparison, the Feasibility Report estimated project costs at $430,934.81 and the engineer’s estimate based on final plans and specifications was $447,453.09. 
 
The improvements are proposed to be funded using a combination of Street Reconstruction and Overlay Program bond funds ($279,742.21), Stormwater Utility Funds ($630.84), and special assessments to benefitting properties ($93,247.40).
 
Sixteen (16) residential parcels use these streets to access their properties and will therefore receive special benefit from the improvements. Staff proposes to assess up to 25-percent of eligible project costs equally across these 16 parcels using the “per lot” assessment method.  Based on the low bid, assessments would be $5,827.96 per parcel. Assessments for this project were preliminarily adopted at $6,733.36 per parcel.
 
Final assessments will be based on final construction costs and the findings of a special benefit consultation report. Unless Council objects, Staff plans to order a special benefit consultation report for this project following Council authorization to award a construction contract. Again, the purpose of this report is to help verify that proposed assessments will not exceed the benefit to assessed parcels.

Staff recommends Alternative #1.  This will allow the project to be constructed in 2018, and will allow for the use of special assessments to pay for up to 25% of eligible project costs per the applicable provisions of Minnesota Statute Chapter 429, Chapter 8 of the City Charter, and the City’s Special Assessments Policy.

Motion to adopt Resolution #18-059 accepting bids and awarding a contract for construction for Stanhope Terrace Street Reconstructions, Improvement Project #18-00.