Adopt Resolution #24-086 Accepting Bids and Awarding Contract for Improvement Project #23-19, COR Infrastructure Improvements

Purpose:
The purpose of this case is to adopt Resolution #24-086 accepting bids and awarding a contract for Improvement Project #23-19, COR Infrastructure Improvements, to Douglas-Kerr Underground, L.L.C. in the amount of $2,973,047.22.  
 
Background:
On February 21, 2023, the Public Works Committee (PWC) reviewed The COR Analysis Update as prepared by Bolton and Menk, Inc. 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 the identified priorities, Bolton and Menk, Inc. 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 attached proposal, completing the following work tasks in 2023 would help to achieve the identified priorities;

• 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.

 
In the Summer of 2023, all trees were cleared from The COR, allowing mass grading to occur.  This work was designated as Improvement Project #23-17, COR Tree Clearing.
 
In the Fall of 2023, the Waterfront pond was graded and lined, all low-lying parcels in The COR were filled to specified elevations using structural fill material excavated from the pond after documenting and compacting all underlying soils, salvaged topsoil was spread on the newly placed and compacted fill, and turf was established.  This work was designated as Improvement Project #23-20, COR Mass Grading.
 
At the December 12, 2023, City Council work session, the City Council directed staff to work with Bolton and Menk to prepare final plans and specifications for Improvement Project #23-19, COR Infrastructure Improvements, with the intent of constructing the improvements in 2024.  The proposed improvements include reconstructing Zeolite Street between Sunwood Drive and Bunker Lake Boulevard, constructing Ramsey Parkway between Willemite Street and the roundabout at the intersection of Sunwood Drive and 147^th Avenue, and reconstructing Center Street between 146^th Avenue and Bunker Lake Boulevard, as well as appurtenant sidewalk, trail and municipal utilities construction. 
 
Final construction plans are attached.  All streets, sidewalks and trails were designed in coordination with the COR Mass Grading final elevations. 
 
A total of eleven (11) bids were publicly opened and tabulated on March 13, 2024, and the following bids were found to comply with the approved plans and specifications and advertisements for bids.
 

Company	Bid
Douglas-Kerr Underground, L.L.C.	$2,973,047.22
North Pine Aggregate, Inc.	$2,979,501.93
Kuechle Underground Inc.	$2,990,169.39
Northdale Construction Company, Inc.	$3,112,007.72
Northern Lines Contracting	$3,140,130.81
New Look Contracting, Inc.	$3,233,282.36
Burschville Construction Inc.	$3,268,421.16
Dave Perkins Contracting Inc.	$3,294,952.51
Park Construction Company	$3,399,091.21
Northwest	$3,600,733.24
Meyer Contracting Inc.	$3,693,339.41
Engineer’s Estimate	$3,651,888.05

 














The bids are competitive and Douglas-Kerr Underground, L.L.C. submitted the lowest responsible bid in the amount of $2,973,047.22 for the total bid for construction of the improvements in accordance with the approved plans and specifications and advertisements for bids. 

Bid advertisements were published in the Anoka Union Herald on Friday, February 16th, and Friday, February 23rd, 2024.  

Time Frame:
Staff anticipates less than 10 minutes will be required to present this case and respond to questions.  
 
Observations:
Tentative project schedule:

• March 26^th - Council considers award of contract
• April - Start construction
• August 30^th - Substantial completion
• October 18^th - Final completion

 
Alternatives:
Alternative #1: Motion to adopt Resolution #24-086 accepting bids and awarding a contract for Improvement Project #23-19, COR Infrastructure Improvements, to Douglas-Kerr Underground, L.L.C. in the amount of $2,973,047.22.
 
Alternative #2: Motion of other. 

The low bid of Douglas-Kerr Underground, L.L.C. is $2,973,047.22.
 
Estimated project costs total $3,656,848.08 after adding 23-percent for indirect costs for administrative, engineering, finance and legal fees.

The proposed funding source for this project is TIF 14.  Funds from TIF 1 and TIF 2 will be transferred to TIF 14 as previously authorized by the City Council on March 12th.  TIF eligible improvements include streets, sidewalks, and storm sewer.  Sanitary sewer and water improvements are also TIF eligible expenses and staff propose to fund all sanitary sewer and water improvements using TIF 14 funds to preserve utility enterprise funds for future improvements identified in the Capital Improvement Plan.
 
City staff will inspect construction and process pay requests. 
 
Attached is a Construction Services Proposal from Bolton and Menk for construction related services including attending the preconstruction meeting, staking construction, reviewing shop drawings, administering pay requests, and preparing as-built plans in a not-to-exceed amount of $70,684.00, which Staff has reviewed and considers reasonable based on previously completed projects and the scope and complexity of this project.  These costs are part of the 23-percent indirect project costs. 
 
Also attached is a Construction Materials Testing Services Proposal from Braun Intertec for an estimated amount of $54,430.  Upon reviewing this proposal, staff are of the opinion that the estimated costs are reasonable based on previously completed projects and the scope and complexity of this project. These costs are again part of the 23-percent indirect project costs.  

Staff recommends approving Alternative #1.  Constructing all of the proposed COR Infrastructure Improvements at the same time will minimize project costs, duration of construction, and impacts to COR residents and businesses.    

Motion to adopt Resolution #24-086 accepting bids and awarding a contract for Improvement Project #23-19, COR Infrastructure Improvements, to Douglas-Kerr Underground, L.L.C. in the amount of $2,973,047.22.