Adopt Resolution #21-128 Approving Plans and Specifications for Dolomite Street Demolition, Improvement Project #21-07, and Approving Supplemental Agreement #1 for Riverdale Drive Reconstruction, Improvement Project #21-00

Purpose:
The purpose of this case is to adopt Resolution #21-128 approving Plans and Specifications for Dolomite Street Demolition, Improvement Project #21-07, and approving Supplemental Agreement #1 for Riverdale Drive Reconstruction, Improvement Project #21-00.

Background:
The demolition of Dolomite Street between Riverdale Drive and Highway 10 is identified in the Highway 10 Access Planning Study, and was moved forward in the Ramsey Gateway Plan. Staff considered incorporating this work into the 2021 Riverdale Drive Reconstruction project, Improvement Project #21-00, but the Minnesota Department of Transportation (MnDOT) State Aid Office informed Staff that the segment of Dolomite Street within Highway 10 right-of-way would need to be removed as part of the project, which would require a separate State Aid project number, separate plans, and separate reviews. Therefore, including this work with Improvement Project #21-00 could delay bids so the demolition of Dolomite Street was not pursued with the project.
 
After bids were authorized for the Riverdale Drive Reconstruction project in late January, Staff again contacted MnDOT State Aid and was informed that State Aid could expedite their plan review process for the Dolomite Street Demolition work since it would benefit the trunk highway system. In turn, this work could potentially be incorporated into Improvement Project #21-00 using a supplemental agreement. Alternatively, the City could bid the work separately and construct it as a separate project.
 
On February 23, 2021, the City Council adopted Resolution #21-048 accepting a design services proposal from Bolton & Menk to prepare plans and specifications for the demolition of Dolomite Street between Riverdale Drive and Highway 10, designated as Improvement Project #21-07. A copy of this resolution is attached.
 
BMI completed the final plans and specifications and requested MnDOT State Aid approval to incorporate the improvements into the Riverdale Drive Reconstruction project via supplemental agreement. MnDOT recently approved this request. BMI then worked with Kuechle Underground to obtain their unit prices for this additional work that would increase the scope of the project and includes several bid items not included in the original plans.
 
Staff is now requesting City Council approval of the attached final plans and specifications and authorization to enter into Supplemental Agreement #1 for Improvement Project #21-00. Staff had anticipated asking for these approvals in June, but was able to move this timeline up due to BMI completing the plans and specifications quicker than anticipated, and due to MnDOT expediting their review process in light of the benefits to Highway 10.  
 
Improvement Project #21-00, Riverdale Drive Reconstruction, Feldspar Street to Sunfish Lake Boulevard, is under construction and Kuechle Underground, Inc. is the prime contractor. This segment of Riverdale Drive is on the City of Ramsey’s Municipal State Aid Street (MSAS) system, which means MnDOT’s State Aid Office must approve significant changes to the scope of the project and/or the addition of pay items during construction.
 
Attached are copies of the Dolomite Street Demolition final plans, Supplemental Agreement #1, and seven (7) plan sheets from the Riverdale Drive Reconstruction project that were revised to reflect the revisions included in Supplemental Agreement #1, which are reflected within the areas outlined by bubble clouds. 

Notifications are not required for this case. 

Alternatives:
Alternative #1 – Adopt Resolution #21-128 approving Plans and Specifications for Dolomite Street Demolition, Improvement Project #21-07, and approving Supplemental Agreement #1 for Riverdale Drive Reconstruction, Improvement Project #21-00.   

Estimated project costs for the demolition of Dolomite Street based on the attached final plans and specifications is $57,620. Kuechle Underground, Inc. has agreed to complete the work for $47,388.48 through Supplemental Agreement #1.
 
Supplemental Agreement #1 also includes an amount of $26,600 to furnish and install a total of 19 new watermain gate valve boxes.  The new valve boxes are needed because when the contractor started lowering the existing valve boxes that were installed in 1988, all of them broke. New valve boxes are therefore needed to complete the project. Staff feels the unit price of $1,400 per valve box is more than reasonable and recommends approving this pay item as part of Supplemental Agreement #1.
 
On February 11, 2021, the EDA recommended City Council approval for the removal of Dolomite Street between Riverdale Drive and Highway 10, and approved allocating $50,000 from the EDA cash balance to fund the City’s portion of project costs. This decision was based on the thought that the demolition of Dolomite Street would increase the marketability of the City-owned parcel west of Dolomite Street. This property, which has received significant interest from developers over the years, has not yet been developed due to the inability to cost-effectively manage stormwater on site. Attached is a copy of the EDA case with attachments, as well as minutes from that meeting. 
 
Staff anticipates all project costs will apply towards the City’s share of costs for the Ramsey Gateway Highway 10 Improvements, and will continue working to confirm this.  
 
Demolishing Dolomite Street as part of Improvement Project #21-00 using the attached Supplemental Agreement will reduce costs for the Riverdale Drive Reconstruction project in an amount of $8,121 due to the ability to remove or reduce several pay items around the intersection of Riverdale Drive and Dolomite Street as outlined in the Supplemental Agreement and as reflected in the seven (7) revised plan sheets from the Riverdale Drive Reconstruction project.
 
After Dolomite Street is demolished, the existing right-of-way is proposed to be vacated and turned back to the two abutting property owners. This work is not contemplated as part of this case.  

Staff recommends approving alternative #1 to allow the demolition of Dolomite Street to proceed as quickly as possible based on the goals of and financial contribution provided by the City of Ramsey’s Economic Development Authority, and due to the benefits it will provide to Highway 10.  

Adopt Resolution #21-128 approving Plans and Specifications for Dolomite Street Demolition, Improvement Project #21-07, and approving Supplemental Agreement #1 for Riverdale Drive Reconstruction, Improvement Project #21-00.