Adopt Resolution #22-072 Accepting Bids and Awarding Contract for Improvement Project #22-05, Riverdale Drive Trunk Utility Improvements, Llama Street to Bowers Drive

Purpose:
The purpose of this case is to adopt Resolution #22-072 accepting bids and awarding a contract for construction for Improvement Project #22-05, Riverdale Drive Trunk Utility Improvements, Llama Street to Bowers Drive, and approving a proposal from Bolton and Menk, Inc. to provide construction related services.   
 
Background:
The extension of Riverdale Drive between Llama Street and Bowers Drive is needed to support development in the area. In the Spring of 2022, Capstone Homes plans to begin construction on the first phase of Riverstone South, a 244-unit residential development east of Bowers Drive and south of U.S. Highway 10/169.  Commercial development is also proposed in the area between U.S. Highway 10/169 and the proposed extension of Riverdale Drive. These developers will pay trunk utility fees when they develop to help replenish trunk utility funds used to pay for these trunk utility improvements.
 
Improvement Project #22-05 proposes to construct the trunk municipal utilities (sanitary sewer and watermain) along the proposed extension of Riverdale Drive NW between Llama Street NW and Bowers Drive, along with the required storm sewer improvements. As discussed previously, the trunk utility improvements are proposed to be constructed ahead of the street improvements project (Improvement Project #20-05) to better facilitate the proposed construction schedule for Riverstone South. The trunk utility plans did not need to follow the same MnDOT LPP plan review process as the street improvement plans, allowing the utility improvements to be bid and constructed earlier thereby minimizing the construction schedule for Improvement Project #20-05.
 
Construction for this work would previously have been estimated to take about 8 weeks to complete, including the lift station within the Riverstone South plat. However, construction for this project is now anticipated to take considerably longer with construction anticipated to start in April or May and to be complete by August 2022.  The actual project schedule will depend on weather, availability of materials, and the awarded contractor’s availability.  Contractor’s typically order their materials upon execution of a contract, but recently the delivery of construction materials to job sites, especially utility pipes and appurtenances, has been taking several months after materials are ordered. The current anticipated delivery time for watermain materials after they are ordered is up to 20 weeks.
 
Staff will work to properly coordinate this trunk utility work with the private utilities work occurring as part of the Riverstone South development. 
 

Advertisements for bids were published in the Anoka Union Herald and in Finance & Commerce on February 11 and 18, 2022.
 
This project was also advertised and bid electronically through QuestCDN. Bolton and Menk administered bids with some assistance from Staff.    

Observations:
As previously discussed, the Puma Street watermain loop connection between Bunker Lake Boulevard and Riverdale Drive will be bid with Improvement Project #20-05.  
 
As is typical with all public improvement projects constructed in the City of Ramsey, a project web page will be maintained on the Engineering department’s web site, and construction update letters may be mailed to adjacent property owners during construction to provide construction related updates and other pertinent information.
 
The proposed improvements should have a minimum serviceable life of 60 years, assuming proactive maintenance operations are performed on a regular basis during the life of the improvements.  
 
Alternatives:
Alternative #1 – Motion to adopt Resolution #22-072 accepting bids and awarding a construction contract to Douglas-Kerr Underground, L.L.C. from Mora, MN in the amount of $2,163,890.22 and approving Bolton & Menk’s proposal for construction related services in the not-to-exceed amount of $45,615.00 for Improvement Project #22-05, Riverdale Drive Trunk Utility Improvements, Llama Street to Bowers Drive.
 
Alternative #2 – Motion to deny adoption of Resolution #22-072 at this time.   
 

A total of eleven (11) bids were received, opened, and tabulated on March 11, 2022, and the following bids were found to comply with the approved plans and specifications and advertisements for bids. 
 

CONTRACTOR	TOTAL BID
Douglas-Kerr Underground, L.L.C.	$2,163,890.22
LaTour Construction, Inc.	$2,363,230.01
Northern Lines Contracting	$2,494,872.65
Park Construction Company	$2,607,653.11
Kuechle Underground, Inc.	$2,630,120.76
S R Weidema, Inc.	$2,642,679.26
Dave Perkins Contracting, Inc.	$2,828,024.11
Northdale Construction Company, Inc.	$2,937,700.83
Meyer Contracting, Inc.	$2,938,256.20
Geislinger & Sons	$2,977,426.50
Ryan Contracting Co.	$3,366,904.00
Engineer’s Estimate	$2,684,867.50

 
The bid of Douglas-Kerr Underground, L.L.C. of Mora, Minnesota, in the amount of $2,163,890.22 for the total bid for construction of the improvements in accordance with the approved plans and specifications and advertisement for bids, is the lowest responsible bidder.  Their bid is 19.4-percent less than the engineer’s construction cost estimate.
 
After adding indirect costs in the amount of 23-percent for administrative, engineering, finance and legal costs, total project costs will be about $2,661,585 per the low bid.
 
Attached is an engineering services proposal submitted by Bolton and Menk, Inc. on March 17, 2022, which includes a not-to-exceed fee of $45,615.00 for numerous required construction-related services.  Since these services cannot be provided in-house they must be contracted out, and since Bolton & Menk is the design engineer they will be best able to assist Staff with these services.
 
City staff will inspect all construction and assist with much of the project administration duties.
 
Project costs related to sanitary sewer, watermain and stormwater improvements will be paid from the respective enterprise funds, though up to 55-percent of eligible stormwater improvements can be funded by State Aid Funds based on contributing drainage areas (MnDOT versus City).  See attached MnDOT memo for more information.   

Staff recommends approving Alternative #1 to support current and continued development in the area.

Motion to adopt Resolution #22-072 accepting bids and awarding a construction contract to Douglas-Kerr Underground, L.L.C. from Mora, MN in the amount of $2,163,890.22 and approving Bolton & Menk’s proposal for construction related services in the not-to-exceed amount of $45,615.00 for Improvement Project #22-05, Riverdale Drive Trunk Utility Improvements, Llama Street to Bowers Drive.