Adopt Resolution #23-078 Accepting Bids and Awarding Contract for Improvement Project #23-12, HY-10 Ramsey Improvements

Purpose:
The purpose of this case is to adopt Resolution #23-078 accepting bids and awarding a construction contract for Improvement Project #23-12, HY-10 Ramsey Improvements.  
 
Background:
These proposed HY-10 Improvements are needed to support existing uses and future development within the HY-10 Ramsey plat area.
 
Attached are four agenda cases with attachments outlining all relevant background details associated with this improvement project.  The attached agenda cases are from the following meetings;

• EDA meeting - May 13, 2021
• EDA meeting - December 9, 2021
• City Council regular meeting - December 14, 2021
• EDA meeting - February 9, 2023 

 
The following documents are also attached for reference;

• Final draft of the HY-10 Ramsey Improvements Feasibility Report, dated March 9, 2023.
• Meeting minutes from the February 21, 2023, Public Works Committee meeting
• Meeting minutes from the February 28, 2023, City Council work session
• Final plans for Improvement Project #23-12 
   

Advertisements for bids were published in the Anoka Union Herald and Finance & Commerce on March 17th and March 24th, 2023. The project was also advertised and bid electronically on QuestCDN.    

Observations:
The plans as bid generally propose to reconstruct existing segments of Ferret Street, 146th Avenue, and the west end of 147th Avenue, extend Ferret Street to Bunker Lake Boulevard, improve Bunker Lake Boulevard as needed to accommodate the new intersection of Ferret Street and Bunker Lake Boulevard, construct stormwater management facilities, and extend municipal utilities along the Ferret Street extension to tie into existing utilities under Bunker Lake Boulevard. 
 
Extending Ferret Street and municipal utilities to Bunker Lake Boulevard will provide the most cost-effective means to serve all unserved properties within the HY-10 Ramsey plat with municipal utilities and a secondary access route. 
 
Alternatives:
Alternative #1:
Motion to adopt Resolution #23-078 accepting bids and awarding a construction contract for Improvement Project #23-12, HY-10 Ramsey Improvements.  
 

The low bid for construction costs is $1,398,953.30, which is almost 30-percent less than the engineer’s estimate of $ 1,813,624.25.

Proposed project funding sources include;

• TIF 14 Bonds (street and sidewalk costs)
• Stormwater Funds (stormwater management costs)
• Sanitary Sewer Funds (sanitary sewer costs)
• Watermain Funds (watermain costs)

 
The recommended funding source for streets/sidewalks per Finance Director Lund and the City’s financial consultant, Ehlers, is to bond for the approximate $7M in improvements needed in The COR area, which consists of the HY-10 Ramsey Improvements and The COR Infrastructure Improvements.  Issuing a Tax Increment bond requires increment to be available in the amount of 20% of the bond.  The city does not currently have $7M in the TIF 14 district and the issuance of debt allows the city the flexibility to keep the current TIF 14 funds (approximately $2M for other improvements in the future).  The issuance of debt is a cleaner process as it avoids the need for the set-up of internal loans from other funding sources, tracking these loans with not only pay back when increment becomes available, but also tracking interest.  Bond numbers will be run once the true costs of the improvements are known.   
 
As previously approved, Bolton & Menk will provide construction staking and administrative assistance services during construction for the not to exceed fee of $34,881.
 
City staff will inspect construction and process pay requests.  

Staff recommends alternative #1.
 
Staff has confirmed that the owner of the property south of Bunker Lake Boulevard supports the extension of Ferret Street to Bunker Lake Boulevard and will dedicate the required right-of-way and easements to the City to allow the project to be constructed in 2023. 
 
If the City decides to award the project to the low bidder, Bolton & Menk recommends awarding the contract to Douglas-Kerr Underground, L.L.C. in the amount of $1,398,953.30.  See attached Bid Results and Recommendation memo.  

Motion to adopt Resolution #23-078 accepting bids and awarding a construction contract for Improvement Project #23-12, HY-10 Ramsey Improvements.