Adopt Resolution #21-200 Accepting Bids and Awarding Contract for Improvement Project #21-12, 2021 Additional Pavement Overlay Improvements

Purpose:
The purpose of this case is to adopt Resolution #21-200 Accepting Bids and Awarding Contract for Improvement Project #21-12, 2021 Additional Pavement Overlay Improvements.
 
Background:
In past years, the City Council has directed Staff to fully utilize funds annually budgeted for necessary Pavement Management Program (PMP) projects. Overlaying an additional 2.58 miles of street segments in 2021 will ensure all PMP funds designated for 2021 PMP projects will be spent in 2021. The streets selected for the 2021 Additional Pavement Overlay Improvements were included in the 2021 – 2030 Capital Improvement Program (CIP) for 2022 mill and overlay improvements. The street segments, which are outlined in the attached street segment summary, were specifically selected since they are exhibiting pavement stripping issues. This will allow the City to address stripping concerns on these streets one year sooner than anticipated in the current CIP, reducing potential impacts to the underlying pavement structure.
 
Plans are attached showing the street segments proposed to receive additional bituminous pavement overlay improvements in 2021. The street segments are located in the following developments:
 

• Reilley Estates
• Reilley Estates 2^nd
• Reilley Estates 3^rd
• Sunfish Gateway Business Park
• Traprock Commons
• Wildlife Sanctuary 2^nd
• Wildlife Sanctuary 3rd

 
On June 8, 2021 the Ramsey City Council adopted resolution #21-159, ordering Staff to prepare plans and specifications for improvement project #21-12, 2021 Additional Pavement Overlay Improvements. Staff has prepared plans and specifications in-house, as part of their normal duties.
 
On June 22, 2021 the Ramsey City Council adopted resolution #21-180, approving plans and specifications and authorizing advertisement for bids for improvements project #21-12, 2021 Additional Pavement Overlay Improvements.
 
The proposed improvements are designated as City Improvement Project #21-12, 2021 Additional Pavement Overlay Improvements.

Advertisements were published in the Anoka Union Herald and in Finance & Commerce on June 25 and July 2, 2021. Bids were also advertised on-line on QuestCDN.
 
If Council awards the project, project notification letters will be mailed to property owners impacted by the construction project.

Observations/Alternatives:
Motion to adopt Resolution #21-200 accepting bids and awarding a construction contract for 2021 Additional Pavement Overlay Improvements, Improvement Project #21-12, to North Valley, Inc. for the bid in the amount of $563,416.59.

Bids were advertised in the Anoka Union Herald and in Finance and Commerce on June 25 and July 2, 2021. On July 19, 2021 a total of six (6) 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.	$563,416.59
Valley Paving, Inc.	$613,342.82
Bituminous Roadways, Inc.	$630,069.10
Asphalt Surface Technologies Corp.	$680,899.96
OMG Midwest Inc. dba Minnesota Paving & Materials	$696,019.20
C.S. McCrossan Construction, Inc.	$728,864.00
Engineer’s Estimate	$606,764.60

 
The bid of North Valley, Inc. of Nowthen, Minnesota, in the amount of $563,416.59 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-percent brings total project costs to $642,294.91.
 
Per the final plans and specifications, estimated construction costs were $606,764.60. After adding 14-percent for indirect costs including; administrative, engineering, finance and legal costs, estimated project costs totaled $691,711.64.
 
The low bid is 7% less than the engineer’s estimate, primarily due to lower than anticipated bituminous paving pricing.
 
Funding sources for these improvements includes a mix of Pavement Management Funds, and Stormwater Utility Funds.
 

• Pavement Management Funds  $623,805.96
• Stormwater Utility Funds  $18,488.95
• Total Project Costs  $642,294.91

 
Bolton & Menk proposes to provide construction staking in a total not-to-exceed amount of $1,560.00. These costs are included in the 14% indirect costs. Staff feels these costs are reasonable on the scope of the proposed improvements and required staking and recommends accepting the proposal, which is attached for reference.
 
City Staff proposes to administer and inspect construction.
 
Plans and specifications were prepared in-house as part of Staff’s normal duties.

Staff recommends adopting Resolution #21-200, Accepting Bids and Awarding Contract for Improvement Project #21-12, 2021 Additional Pavement Overlay Improvements.

Motion to adopt Resolution #21-200 Accepting Bids and Awarding Contract for Improvement Project #21-12, 2021 Additional Pavement Overlay Improvements, to North Valley, Inc. for the total bid in the amount of $563,416.59.