Adopt Resolution #22-176 Accepting Bids and Awarding Contract for Improvement Project #20-05, Riverdale Drive Extension, Llama Street to Bowers Drive

Purpose:
The purpose of this case is to adopt Resolution #22-176 accepting bids and awarding a construction construct for Improvement Project #20-05, Riverdale Drive Extension, Llama Street to Bowers Drive. 

Background:
The extension of Riverdale Drive between Llama Street and Bowers Drive is needed to support future development in the area.  Capstone Homes is currently constructing the first phase of the Riverstone South residential development, which upon completion will include 244 single-family units northeast of Bowers Drive and south of U.S. Highway 10/169.  Commercial development is also proposed between U.S. Highway 10/169 and the proposed extension of Riverdale Drive.  Also, approximately 100 acres of undeveloped property exists immediately east of the Riverstone South development.
 
Improvement Project #22-05 is currently under construction to extend trunk municipal utilities (sanitary sewer and watermain) along the proposed extension of Riverdale Drive between Llama Street and Bowers Drive, a sanitary sewer list station, and required storm sewer improvements for Riverdale Drive. These utility improvements are being constructed ahead of Improvement Project #20-05 to facilitate the construction schedule of Riverstone South.
 
Improvement Project #20-05 proposes to reconstruct the segment of Riverdale Drive east of Llama Street that was not reconstructed with the Armstrong Boulevard and Highway 10 interchange improvements, which measures approximately 1,280 linear feet (0.24 miles).  This project also proposes to extend Riverdale Drive and a regional trail from Llama Street to Bowers Drive, which measures approximately 4,250 linear feet (0.8 miles).  Both street segments will be constructed with bituminous pavement meeting a 10-ton design strength measuring 40-feet wide between the concrete curb and gutter faces.  The bituminous trail will be 10-feet wide.  This extension of Riverdale Drive will become part of the City’s Municipal State Aid (MSA) street system, meaning it will generate MSA funds moving forward and must therefore be constructed to MnDOT design standards.
 
Additionally, this project proposes to construct a trunk watermain line to connect the trunk watermain lines under Riverdale Drive and Bunker Lake Boulevard. This watermain will be installed in a sleeve under Highway 10 and the BNSF railway, and will provide a looped watermain system. 

Advertisements for bids were published in the Anoka Union Herald and in Finance & Commerce as required by State Statute. The project was also advertised and bid electronically through QuestCDN. 

Engineering Staff maintains a project webpage, which will be updated with new information throughout construction.  

Observations:
On July 29, 2022, a total of four (4) bids were received, opened, tabulated, and found to comply with the advertisement for bids.
 

CONTRACTOR	TOTAL BID
Douglas-Kerr Underground, L.L.C.	$2,342,102.66
Forest Lake Contracting, Inc.	$2,368,094.65
New Look Contracting, Inc.	$2,441,445.45
North Valley, Inc.	$2,463,365.28
Engineer’s Estimate	$2,346,670.50

The bid of Douglas-Kerr Underground, L.L.C. of Mora, Minnesota, in the amount of $2,342,102.66 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 of 23-percent for administrative, engineering, finance, and legal costs brings total project costs based on the low bid to $2,880,786.27.
 
The 4 bids received were very competitive.  The low bid is 0.2-percent less than the engineer’s estimate.  

Bid results were sent to the MnDOT State Aid Agreements Engineer for concurrence. Attached is a copy of the bid concurrence letter received from MnDOT, which is one of two requirements of MnDOT before allowing a contract for construction to be executed.  The other requirement is for the Cooperative Construction Agreement to be executed by MnDOT. At the time this case was published, Staff had not yet received an executed Cooperative Construction Agreement from MnDOT. An update will be provided while presenting this case to Council.  Resolution #22-176 requires Cooperative Construction Agreement #1050030 to be executed by MnDOT before a contract for construction can be executed for Improvement Project #20-05. 
 
Alternatives:
Alternative #1:
Motion to adopt Resolution #22-176 accepting bids and awarding a construction contract for Improvement Project #20-05, Riverdale Drive Extension, Llama Street to Bowers Drive, to Douglas-Kerr Underground, L.L.C. for their bid in the amount of $2,342,102.66.

Alternative #2:
Motion denying adoption of Resolution #22-176 at this time.    

Total project costs based on the low bid are estimated at $2,880,786.27.
 
The engineer’s estimate from February 2022 was $1,456,310.50.  Costs have generally increased since then due to;

• Increased material prices for the watermain loop between Riverdale Drive and Bunker Lake Boulevard.
• Increased bituminous prices.
• Including the reconstruction of Riverdale Drive east of Llama Street.
• Including the MnDOT required median cable barrier along Highway 10, though this will be reimbursed by MnDOT.
• Including sewer and water services on the west end of the project, though this cost will be reimbursed by the developer through a separate cost-share agreement that will be presented to the City Council for approval before the improvements are constructed. If an agreement is not executed, this work will not be completed.
• Inflation across all remaining bid items.

 
Bolton and Menk, Inc. prepared final plans and specifications for Improvement Project #20-05, Riverdale Drive Extension, Llama Street to Bowers Drive, at a not-to-exceed fee of $89,024.  This cost is being shared among the project funding partners per the previously approved, executed and recorded assessment agreements.
 
Bolton and Menk, Inc. has submitted the attached proposal for construction related services in the amount of $49,775.00.  These services cannot be completed by Staff and are required for the construction of Improvement Project #20-05 to be completed.  This indirect cost is also being shared among the project funding partners per the previously approved, executed and recorded assessment agreements.  
 
Staff will present a thorough summary of project costs when presenting this case to Council. 

Staff recommends alternative #1.  
 
Bolton and Menk recommends alternative #1 once Cooperative Construction Agreement #1050030 is fully executed, if the City of Ramsey decides to award the project to the low bidder.
 
Due to the timing of the bid opening, Staff was not able to secure a recommendation from the Public Works Committee.  

Motion to adopt Resolution #22-176 accepting bids and awarding a construction contract for Improvement Project #20-05, Riverdale Drive Extension, Llama Street to Bowers Drive, to Douglas-Kerr Underground, L.L.C. for their bid in the amount of $2,342,102.66.