Purpose:
Adopt Resolution #22-244 accepting proposals and authorizing execution of proposal by Dave Perkins Contracting, Inc. for Improvement Project #22-14, Argon Street Drainage Improvements. 
 
Background:
The Halland Acres residential development was platted in 1972, two years before the City of Ramsey incorporated in 1974. A copy of the plat is attached for reference.
 
Over the years, Staff have been contacted by several property owners in this subdivision regarding various drainage concerns. In general, stormwater runoff from City right-of-way’s is being conveyed through numerous properties along Argon Street and Barium Street between Alpine Drive and 154th Lane. The larger areas where stormwater is being conveyed across private properties are not encumbered by drainage and utility (D&U) easements.  Only perimeter D&U easements were platted with the Halland Acres development.  Attached is an exhibit showing the existing drainage path through the private properties. 
 
The current property owners of 15410 Argon Street contacted Staff this Spring and stated that the previous homeowner replaced the septic system shortly before they purchased the home in the Spring of 2017.  Staff researched this and found that the septic system was replaced by the previous property owner in 2012.  An inspection was performed by the City in 2016 and the system was found to be compliant and in good operating condition.
 
On October 3, 2016, Public Works Staff met with the previous property owner to discuss their stormwater runoff concerns, namely that stormwater runoff was backing up from the perimeter drainage easement along the rear property line and was encroaching upon their walkout entry door on the east side of the house.  Public Works Staff completed some minor grading work on the property in the Spring of 2017 by lowering the elevation of the yard in two spots in an attempt to prevent water from backing up towards the house. Attached is a copy of the letter sent to the property owner in advance of the grading work. Grading work was not completed over the drain field to avoid damage. 
 
On March 14, 2019, the current property owner called Public Works to request that snow be removed from their yard to allow stormwater runoff to flow to the west as it normally does.  They stated they had to pump about 200 gallons of stormwater runoff from their basement and asked for City assistance to remove a snow dam from their yard that was causing stormwater runoff to back up through the yard and into their home. 
 
On March 18, 2022, Public Works Superintendent Grant Riemer visited the property after the property owner called to say water was entering through the walkout entry door. The property owner then requested that the City complete a drainage improvement project to keep stormwater runoff away from their house, and stated that the City is responsible for the water entering their house because of the grading work the City completed and because the City approved the new septic system after it was installed.
 
In April of 2022, Engineering Staff surveyed the property, as well as the Argon Street right-of-way including the drainage ditches and a culvert that crosses under Argon Street, directing stormwater runoff from the east side of Argon Street to the west side and through the property at 15410 Argon Street. 
 
On May 11, 2022, Public Works Staff placed sand bags outside the walkout entry door in response to the property owners concerns with a large rain event forecast for that evening. To date, these sand bags have remained in place and have prevented stormwater runoff from entering the home during several heavy rain events.
 
On June 21, 2022, the Public Works Committee considered an improvement project as designed by City Staff to collect stormwater runoff from Argon Street using storm sewer pipe, manholes and ditch inlets, with the storm sewer being directed to the existing stormwater pond south of Alpine Drive between Argon and Barium Streets. Though this design would have prevented stormwater runoff from Argon Street from being conveyed though private properties, the estimated project cost was $500,000 so the Committee directed Staff to explore more cost-effective options. Meeting minutes are attached.
 
On July 19, 2022, the property owners of 15410 Argon Street addressed the Public Works Committee. Based on discussions from that meeting, Staff enlisted Bolton & Menk to collect topographic survey data across several properties along Argon Street and Barium Street for the purpose of designing and preparing plans for a drainage improvement project contained to 15410 Argon Street, and to ensure that performing the required grading on this property would not adversely impact properties downstream. Meeting minutes are attached.
 
On August 22, 2022, the Public Works Committee received an update from Staff on the status of the design and plans, and the Committee directed Staff to finalize the plans and obtain quotes, and if the low quote did not exceed $10,000 Staff was directed to take the low quote directly to City Council for approval. Meeting minutes are attached.
   
In late August, Staff received the survey data from Bolton & Menk and used it to finalize plans and confirm that the proposed grading on 15410 Argon Street would not have an adverse impact on properties downstream.
 
Staff prepared the attached Request for Proposal (RFP) and submitted it to 5 contractors.  Proposals were requested by 10 AM, October 5, 2022.  Three proposals were received in the not-to-exceed lump sum amounts shown below.
 

Contractor	Lump Sum Not-to-Exceed Proposal Amount
Dave Perkins Contracting, Inc.	$16,760.00
One Call Contracting, Inc.	$16,987.00
Kuechle Underground, Inc.	$45,000.00

 
All three proposals exceeded the not-to-exceed amount of $10,000 as directed by the Public Works Committee so in lieu of presenting the proposals to City Council for action on October 11, 2022, Staff requested additional direction from the Public Works Committee on October 18, 2022.  The Public Works Committee asked Staff what the estimated low quote might be if the City were to request new quotes next Spring allowing for a longer project completion schedule and design modifications aimed at reducing costs by replacing the concrete drainage structure with a smaller plastic structure or another type of structure.  Staff responded that based on the quotes received, as well as current and forecast material prices, project costs could potentially come in between $12,000 and $14,000. Following this discussion, the Public Works Committee passed a motion to recommend that the City Council accept the three proposals and authorize execution of the proposal of Dave Perkins Contracting, Inc. in the amount of $16,760 for construction of the Argon Street Drainage Improvements.     

Notifications are not required for this case. 

Observations:
The owners of 15410 Argon Street support the project as proposed and verbally agreed to sign a right-of-entry agreement allowing the contractor access to the property to complete the work as proposed.  Staff will present the right-of-entry agreement to the property owners following City Council approval of this case.
 
The property owners were asked if they would be willing to contribute any costs for the proposed drainage improvements on their property to help offset the difference between the Public Works Committee directed not-to-exceed amount of $10,000 and the low proposal not-to-exceed amount of $16,760.  The property owners responded that they feel the City should pay for 100-percent of the proposed improvements for reasons previously discussed.  
 
Alternatives:
Alternative #1 – Accept the three proposals received and authorize execution of the proposal from Dave Perkins Contracting, Inc. in the amount of $16,760 for construction of Improvement Project #22-14, Argon Street Drainage Improvements.     

Accept the three proposals received and authorize execution of the proposal from Dave Perkins Contracting, Inc. in the amount of $16,760 for construction of Improvement Project #22-14, Argon Street Drainage Improvements.