Adopt Resolution #18-112 Accepting Bids and Awarding Contract for Bunker Lake Boulevard and Puma Street Pavement Improvements, Improvement Project #18-05

Purpose:
The purpose of this case is to adopt Resolution #18-112 accepting bids and awarding Contract for Bunker Lake Boulevard and Puma Street Pavement Improvements, Improvement Project #18-05.

Background:
The proposed improvements comprise the third project in a series of recent improvement projects required to serve current and future developments within the immediate area with utilities and transportation facilities.
 
In the fall of 2017, utility extension improvements were constructed along approximately 1,400-feet of Bunker Lake Boulevard, east of Puma Street.  These utility extensions were required to serve the Riverstone residential development west of Puma Street, as well as a portion of the Bunker Lake Industrial Park development south of Bunker Lake Boulevard and east of Puma Street.  This work is identified as Phase 1A in the attached March 2017 updated Future Business Park Report completed by Bolton & Menk, which includes estimated costs for all improvements needed to support the Future Business Park.
 
Construction of utility extension improvements under Puma Street, north of Bunker Lake Boulevard, were completed from fall 2017 through spring 2018.  These improvements will support a majority of the Riverstone residential development, as well as future commercial and residential development east of Puma Street, plus a small area of undeveloped land in the Northfork development, west of the Riverstone development.  The area to be served by these utilities, with the exception of the small Northfork area, is within the City’s MUSA thereby requiring service by City sewer and water.   This work is identified as Phase 1B in the attached March 2017 updated Future Business Park Report.
 
The City Council is now being asked to accept bids and award a contract for construction of the proposed roadway improvements to Bunker Lake Boulevard and Puma Street where the utility improvements were recently completed.  Proposed improvements primarily include storm sewer, concrete curb and gutter, and bituminous pavement for both streets, as well as bituminous trail improvements.
 
Attached is a proposal from Bolton & Menk dated December 7, 2017, which details the scope of the improvements and their estimated costs.  Further information on these costs are included in the Bolton & Menk memo dated July 27, 2017.
 
On May 8, 2018, the City Council approved plans and specifications and authorized advertising for bids.  Attached is a copy of the construction plans prepared by Bolton & Menk.
 
Bids were advertised in the Anoka Union Herald and in Finance and Commerce on May 11 and 18, 2018.  On June 5, 2018, a total of seven bids were received, opened, and tabulated, and the following bids were found to comply with the advertisement for bids.
 

CONTRACTOR	TOTAL BID
Douglas-Kerr Underground, LLC	$923,458.23
Midwest Civil Constructors	$981,506.31
Dave Perkins Contracting	$1,018,700.80*
C & L Excavating	$1,031,403.70
Forest Lake Contracting	$1,051,586.31
Northdale Construction	$1,101,655.79
CS McCrossan Construction	$1,113,695.80
Engineer’s Estimate	$1,140,000.00

* Bid reflects a corrected summation of unit prices bid multiplied by estimated quantities shown on Bid Form.
 
The bid of Douglas Kerr Underground of Mora, Minnesota, in the amount of $923,458.23 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.

Advertisements for bids were published in the Anoka Union Herald and in Finance and Commerce on Friday, May 11, and again on Friday, May 18, 2018.

Plans and specifications were uploaded to the QuestCDN on-line bidding platform, which is where most contractors actively search for bids.
 

Observations:
These streets are part of the City of Ramsey’s Municipal State Aid Street system and as such required review and approval by the Minnesota Department of Transportation’s State Aid Division.

 

Alternatives:
Alternative #1 – Motion to adopt Resolution #18-112 accepting bids and awarding a Contract for Bunker Lake Boulevard and Puma Street Pavement Improvements, Improvement Project #18-05.

Alternative #2 – Motion denying adoption of Resolution #18-112 at this time.

The low bid for construction of the proposed improvements as submitted by Douglas Kerr Underground amounts to $923,458.23.  After adding indirect costs (23%), the total project costs becomes $1,135,853.62.
 
Funding sources for these improvements include a mix of City funds including TIF #1 and Anoka County HRA funds, as well as special assessments to benefiting properties per the attached Assessment Agreement. This agreement allows for 40% of project costs, including plans and specifications, to be collected from two adjacent private property owners, Riverstone Development, LLC and Hageman Holdings, LLC.  The City will pay the remaining 60% of project costs, including plans and specifications.
 
The available balance for TIF #1 funds is $1.073M, and the balance of the Anoka County HRA funds as of July 17^th was $1.175M.  Staff will present a more detailed funding summary during the Council meeting, which will address project costs and estimated funding sources for all three public improvement projects associated with the attached assessment agreement.
 
Staff proposes to utilize Bolton & Menk to assist with project administration and to stake construction.  Estimated costs for these work efforts are referenced in the attached proposals from Bolton & Menk, and are included in the 23% indirect costs.
 
City staff proposes to inspect construction and to assist with project administration.

Staff recommends alternative #1 to support current and future development opportunities in this area of the City.

Staff does not support alternative #2.

Adopt Resolution #18-112 accepting bids and awarding a Contract for Bunker Lake Boulevard and Puma Street Pavement Improvements, Improvement Project #18-05.