Adopt Resolution #23-176 Accepting Bids and Awarding Contract for Improvement Project #23-20, COR Mass Grading

urpose:
The purpose of this case is to adopt Resolution #23-176 accepting bids and awarding a contract for construction for Improvement Project #23-20, COR Mass Grading.  
 
Background:
Attached is the final The COR Analysis Update prepared by Bolton and Menk, Inc. (BMI).
 
On February 21, 2023, the Public Works Committee reviewed The COR Analysis Update and identified the following immediate COR Infrastructure priorities;

• Grading, lining and installing storm sewer for the Waterfront stormwater pond,
• Filling low-lying COR properties using fill from the Waterfront pond excavation,
• Reconstructing Zeolite Street,
• Reconstructing and realigning the north end of Center Street, and
• Constructing Ramsey Parkway between the Sunwood Drive roundabout and Willemite Street.

 
During the February 28, 2023, City Council work session, Council confirmed these priorities by consensus.
 
Based on these identified priorities, BMI prepared the attached COR Infrastructure Design Services Proposal to identify the associated scope of services and estimated costs required for design services, as well as estimated construction costs.  Per the proposal, significant progress can be made in 2023 to achieve the identified priorities by completing the following work tasks;

• Grading, lining and installing storm sewer for the Waterfront stormwater pond,
• Filling low-lying COR properties using fill from the Waterfront pond excavation,
• Design and prepare plans and specifications for Zeolite Street,
• Design and prepare plans and specifications for the north end of Center Street, and
• Design and prepare plans and specifications for Ramsey Parkway between the Sunwood Drive roundabout and Willemite Street.

 
Tree clearing was required before The COR could be mass graded.  This work, designated as Improvement Project #23-17, COR Tree Clearing, has been completed. The contract for this work was awarded in the amount of $287,000 of which $54,949.42 was previously paid.
 
On July 11th, the City Council approved construction plans and authorized bids for The COR Mass Grading, Improvement Project #23-20.  Plans were prepared by BMI per their COR Infrastructure Design Services Proposal, which is attached to this case.  Final construction plans are attached to this case and provide for excavation of The Waterfront stormwater pond, stripping topsoil from properties proposed to receive fill from The Waterfront, documenting and compacting underlying soils, distributing excavated fill material from The Waterfront to specified elevations, spreading salvaged topsoil on the newly placed and compacted fill, and establishing turf. 
 
A total of ten (10) bids were publicly received, opened and tabulated on August 4, 2023, and the following bids were found to comply with the approved plans and specifications and advertisements for bids.
 

Company	Bid
Enebak Construction Company	$4,197,240.34
Northern Lines Contracting	$4,645,588.10
S.M. Hentges & Sons, Inc.	$4,844,964.99
Fehn Companies, Inc.	$4,925,721.40
North Pine Aggregate, Inc.	$4,930,786.05
Kevitt Excavating	$5,474,246.20
RL Larson Excavating, Inc.	$6,166,010.15
Frattalone Companies	$7,459,251.05
The Mathiowetz Construction	$7,594,160.46
Meyer Contracting, Inc.	$7,822,784.20
Engineer’s Estimate	$8,571,540.50

 













The bid of Enebak Construction Company in the amount of $4,197,240.34 for the total bid for construction of the improvements in accordance with the approved plans and specifications and advertisements for bids, was the lowest responsible bid received. Upon adopting Resolution #23-176, a construction contract will be awarded to Enebak Construction Company in the amount of $4,197,240.34.   

Bids were advertised in the Anoka Union Herald on Friday, July 14th, and Friday, July 21st, 2023.  

Observations:
Design and plan preparation for the three segments of Zeolite Street, Center Street, and Ramsey Parkway identified above are underway and will be complete this Fall. Construction of these street segments can then occur in 2024, or later.
 
The next Council action that will be requested will be to approve plans and specifications and authorize bids for the reconstruction of Zeolite Street between Sunwood Drive and Bunker Lake Boulevard, as well as the construction of Ramsey Parkway between Zeolite Street and the roundabout at the intersection of Sunwood Drive and 147th Avenue, which were identified as the highest priority street segments by consensus of the City Council on July 18, 2023, during the special City Council work session.  This request is anticipated to be presented to Council this Fall/Winter after final construction plans for these street segments are complete.   
 
Zeolite Street will remain closed to traffic during the COR mass grading operations.  
 
Alternatives:
Alternative #1: Adopt Resolution #23-176 accepting bids and awarding a contract for construction for Improvement Project #23-20, COR Mass Grading, to Enebak Construction Company in the amount of $4,197,240.34.  
 
Alternative #2: Motion of other.  

The attached COR Infrastructure Design Services Proposal identifies the following not-to-exceed estimated costs. As noted on page 5, costs will be less if individual projects are combined and constructed as larger projects and not individually.

• Design services costs for all identified improvements = $548,181
• Construction costs for identified 2023 improvements (not including streets and associated storm sewer, sidewalks, trails, sanitary sewer and watermain) = $5,874,000

 
On July 11th when requesting City Council approval of plans and authorization to advertise bids, the engineer’s estimate of construction costs for the major categories of construction related to The COR Mass Grading were presented as follows;

• $5,741,620 for Grading
• $1,499,530 for Storm sewer
• $112,305 for Sanitary Sewer
• $155,730 for Watermain
• $7,509,185 Total Engineer’s Estimated Costs

 
The current engineer’s estimate of construction costs for the major categories of construction related to The COR Mass Grading are as follows;

• $6,756,122 for Grading
• $1,517,429 for Storm sewer
• $131,130 for Sanitary Sewer
• $166,860 for Watermain 
• $8,571,541 Total Engineer’s Estimated Costs

 
This latest estimate was prepared prior to issuing attached bid Addendum 1 which, among other things, extended the substantial completion date from October 30, 2023 to May 31, 2024. During the bidding process, contractors had called to express concerns related to the short schedule. After hearing these concerns, BMI and City staff met to discuss the project completion date.  The City indicated that legislative action related to the funding source allowed for the completion date to be extended. The extended completion date is believed to be the primary factor in the lower bids received.
 
Also, during the project design process, discussions with the City allowed the following additional items to be included in the project:

• Approximately 35% more material to be excavated from the pond and placed on surrounding lots.
• Installation of a trunk storm sewer system through this area of The COR.
• Construction of sanitary sewer and watermain facilities along Zeolite Street and Ramsey Parkway.

 
Construction-related services including preparing construction contract documents, attending the pre-construction conference, reviewing shop drawings and other construction related submittals, staking construction, assisting with construction administration, and observing construction activities as needed are not included in the above design services cost estimate.  Attached is a separate construction services proposal submitted by BMI in the not-to-exceed amount of $222,187.00 to provide such services.  As drafted, Resolution #23-176 authorizes and directs the City Administrator to accept the Construction Services Proposal submitted by Bolton and Menk, Inc. in the not-to-exceed amount of $222,187.00 for and on behalf of the City of Ramsey so a separate motion to accept this proposal is not required.   

Proposed COR infrastructure project funding sources include;

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

 
Finance Director Lund and the City’s financial consultant, Ehlers, recommend using tax increment bonds for the approximate $7,000,000 in COR improvements, which includes the HY-10 Ramsey Improvements (excluding municipal utilities) and the COR Infrastructure Improvements.  Attached is a 15-year tax increment bond run provided by Ehlers. According to Ehlers, the City will have the annual $640,000 needed to make the necessary debt service payments due to increment generated by various developments within The COR.  The 15-year bond term expires before 2040. 
 
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. 
 
City staff will inspect construction and assist with construction administration activities, including processing partial and final pay requests.
 
A detailed summary of project funding amounts per funding sources will be presented during the meeting.    

Staff recommends adopting Resolution #23-176 accepting bids and awarding a contract for construction for Improvement Project #23-20, COR Mass Grading, to Enebak Construction Company in the amount of $4,197,240.34.  
 
Attached is a Bid Award Recommendation Memo from BMI.   

Adopt Resolution #23-176 accepting bids and awarding a contract for construction for Improvement Project #23-20, COR Mass Grading, to Enebak Construction Company in the amount of $4,197,240.34.