Adopt Resolution #21-107 Accepting Bids and Awarding Contract for 2021 Neighborhood Pavement Overlay Improvements, Improvement Project #21-04

Purpose:
The purpose of this case is to adopt Resolution #21-107 Accepting Bids and Awarding Contract for 2021 Neighborhood Pavement Overlay Improvements, Improvement Project #21-04.
 
Background:
Overlaying the streets identified within the 2021 – 2030 Capital Improvement Program for 2021 will allow the City to maintain these streets in the most cost-effective manner throughout the serviceable life of the streets.
 
Plans are attached showing the specific street segments proposed to receive bituminous pavement overlay improvements in 2021. These street segments are located in the following developments:
 

• Birch Hill Lodges
• Ferrum 1^st & 2^nd
• Gateway Industrial Park
• Mallard Ponds
• Northfork Itasca Point
• Northfork St. Andrews
• Oakridge Industrial Park
• Rabbit Run
• Ramsey Meadows 2nd

 
A street segment summary is attached, the proposed project is 1.81 miles in total length.
 
On January 12, 2021 the Ramsey City Council adopted resolution #21-011, ordering Staff to prepare plans and specifications for improvement project #21-04, 2021 Neighborhood Pavement Overlay Improvements. Staff has prepared plans and specifications in-house, as part of their normal duties.
 
On March 23, 2021 the Ramsey City Council adopted resolution #21-074, approving plans and specifications for improvement project #21-04, and authorizing advertisement for bids.
 
The proposed improvements are designated as City Improvement Project #21-04, 2021 Neighborhood Pavement Overlay Improvements.

Advertisements were published in the Anoka Union Herald and in Finance & Commerce on March 26 and April 2, 2021. Bids were also advertised on-line on QuestCDN.

Alternative #1 – Motion to adopt Resolution #21-107 accepting bids and awarding a construction contract for 2021 Neighborhood Pavement Overlay Improvements, Improvement Project #21-04, to North Valley, Inc. for the total bid in the amount of $421,410.74.
 
Alternative #2 – Motion to deny adoption of Resolution #21-107 at this time.

Bids were advertised in the Anoka Union Herald and in Finance and Commerce on March 26 and April 2, 2021. On April 19, 2021 a total of seven (7) bids were received, opened, and tabulated, and the following bids were found to comply with the advertisement for bids.
 

CONTRACTOR	TOTAL BID
North Valley, Inc.	$ 421,410.74
Asphalt Surface Technologies Corp.	$ 474,072.35
Valley Paving, Inc.	$ 481,664.65
Omann Brothers Paving, Inc.	$ 489,179.83
Bituminous Roadways, Inc.	$ 498,293.55
Northwest	$ 501,577.81
Rum River Contracting	$ 577,174.09
Engineer’s Estimate	$521,438.00

 
The bid of North Valley, Inc. of Nowthen, Minnesota, in the amount of $421,410.74 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. Adding indirect costs in the amount of 14% brings total project costs to $480,408.24.
 
Per the final plans and specifications, estimated construction costs were $521,438.00. After adding 14-percent for indirect costs for administrative, engineering, finance and legal costs, estimated project costs totaled $594,439.32.
 
The low bid is 19% less than the engineer’s estimate, primarily due to lower than estimated bituminous paving cost.
 
Funding sources for these improvements includes a mix of Pavement Management Funds, and Stormwater Utility Funds.
 

• Pavement Management Funds     $457,445.71
• Stormwater Utility Funds     $22,962.53
• Total Project Costs     $480,408.24

 
City Staff proposes to administer and inspect construction
 
Plans and specifications were prepared in-house as part of Staff’s normal duties.

Staff recommends Alternative #1.

Motion to adopt Resolution #21-107 accepting bids and awarding a construction contract for 2021 Neighborhood Overlay Improvements, Improvement Project #21-04, to North Valley, Inc. for the total bid in the amount of $421,410.74.