Adopt Resolution #19-266 Rejecting Bids for Improvement Project #19-10, Hedgehog Street Drainage Improvements

Purpose:
The purpose of this case is to adopt Resolution #19-266 rejecting all bids for Improvement Project #19-10, Hedgehog Street Drainage Improvements, and authorizing advertising for bids again next year.

Background:
The property owner at 15639 Hedgehog Street informed Staff in 2018 that stormwater runoff from Hedgehog Street and 156^th Lane NW runs through a ditch on their property but lately the runoff is extending outside the easement area to within about 10 feet of the back door.  The property owner inquired what the City could do to help prevent stormwater runoff from ponding in their back yard.
 
City Staff collected topographic survey data in late 2018 and early 2019, and prepared plans, specifications and cost estimates for a drainage improvement project that includes re-grading the existing drainage swale along the south property line of 15639 Hedgehog Street, directly across from 156^th Lane NW.  The ditch and proposed grading improvements are located within an existing drainage easement that front several properties in the area.  The City will not need to acquire permanent easements to complete this work, but will obtain temporary easements for purposes of construction.  A copy of the plans prepared by Staff are attached for reference.
 
On September 24th, the City Council approved the plans prepared by Staff and authorized advertising for bids to construct the project.

Bids were advertised in the Anoka Union Herald on October 4, 2019.  Bids were also advertised using QuestCDN via the City’s website. 

Observations:
Bids:
Bids were advertised in the Anoka Union Herald on October 4, 2019.  Bids were also advertised using QuestCDN via the City’s website.  On October 30, 2019, seven (7) sealed bids were publicly opened.  The bids complied with the advertisement for bids, but overall the bids received were not competitive and were two to four times higher than the engineer’s estimate. A summary of bids is below and in the attached resolution.
 

CONTRACTOR	TOTAL BID
Northland Excavating	$23,972.46
North Valley, Inc.	$29,854.68
JL Theis, Inc.	$32,015.00
Blackstone Contractors, LLC	$32,625.00
Standard Contracting	$32,640.00
US SiteWork	$35,963.00
Sunram Construction, Inc.	$45,724.00
Engineer’s Estimate	$13,085.75

 
Northland Excavating of Buffalo, Minnesota, submitted the lowest responsible total bid of $23,972.46 in accordance with the approved plans and specifications and advertisement for bids.  This bid is $10,886.71 (83.2%) more than the engineer’s estimate.
 
Alternatives:
Alternative #1: Motion to adopt Resolution #19-266 rejecting bids for Improvement Project #19-10, Hedgehog Street Drainage Improvements, and authorizing advertising for bids again next year.

Alternative #2: Motion to deny adoption of Resolution #19-266 at this time.

Project costs include 18% indirect costs for administrative (5%), engineering (12%), and legal (1%) costs.  Attached is a proposal from Bolton & Menk for construction staking services in the not-to-exceed amount of $980.  This cost would be included under indirect costs for engineering.  Project costs would be $28,287.50 after adding indirect costs.

Staff recommends alternative #1.

Staff believes the bids received are all significantly higher than the engineer’s estimate given the significant workload currently being experienced by grading contractors and recommend re-bidding the project late this winter or early next spring after bundling the work with several other drainage improvement projects currently under design.  The expectation is that bid prices will be significantly lower, and that local grading contractors will also submit bids due to decreased workloads.  
 

Motion to adopt Resolution #19-266 rejecting bids for Improvement Project #19-10, Hedgehog Street Drainage Improvements, and authorizing advertising for bids again next year.