Adopt Resolution #25-071 Accepting Bids and Awarding Contract for High Point Street Reconstruction, Improvement Project #25-05

Purpose:
The purpose of this case is to adopt Resolution #25-071 Accepting Bids and Awarding a Contract to North Valley, Inc. for the total amount of $1,366,954.38 for High Point Street Reconstructions, Improvement Project #25-05.
 
Background:
The proposed 2025 – 2034 Capital Improvement Plan (CIP) identifies the streets within the High Point and Section 22 Unplatted subdivision for street reconstruction in 2025. A street segment summary for the project is attached to this case.
 
Existing Conditions
The street within Section 22 Unplatted (156^th Avenue) is part 26-foot urban section with bituminous curbing and part rural section with drainage swales at the low points. The streets within High Point are 31-foot urban section with bituminous curbing and cross-street valley gutters with drainage flumes at low points. Combined, the streets total approximately 1.67 miles in length. Traffic counts have not been taken within the project area, though there are no destinations within the subdivision which would increase traffic above normal.
 
Municipal sewer and water do not exist in the project area, extension of municipal utilities to this subdivision are not proposed as it is outside the 2040 MUSA. Stormwater is handled with drainage flumes, which carry water to existing ponds, wetlands, and Ditch 66.
 
Project History

• May 28, 2024, the Ramsey City Council adopted Resolution #24-138, accepting and awarding a proposal to Hakanson Anderson for topographic survey of the project area.
• August 12, 2024, the Ramsey City Council adopted Resolution #24-220, accepting and awarding a proposal to Independent Testing Technologies, Inc. for a geotechnical report of the project area.
• November 19, 2024, the Ramsey Public Works Committee recommended City Council order plans and specifications for said improvements.
• November 26, 2024, the Ramsey City Council adopted Resolution #24-340, ordering the City Engineer to prepare plans and specifications for said improvements.
• January 21, 2025, the Ramsey Public Works Committee recommended the Zirconium Street cul-de-sac be constructed to a standard 100-foot diameter.
• February 13, 2025, Ramsey Staff held a public open house for said improvements.
• February 18, 2025, the Ramsey Public Works Committee recommended City Council approve plans and authorize advertisement for bids for said improvements.
• February 25, 2025, the Ramsey City Council adopted Resolution #25-042 approving final plans and specifications for said improvements.
• April 10, 2025, Ramsey staff opened bids for said improvements.

 
Pavement History
The streets within High Point were constructed in 1979 and the street within Section 22 Unplatted was constructed in 1989. All street segments received an overlay in 2001, and subsequently two crack seal / seal coat treatments in 2007 and 2014. Significant patching has occurred over the last several years.
 
GPR was performed on the streets in 2024. At the time, the streets averaged 2.5 to 4.3 inches of bituminous over 2.5 to 4.8 inches of aggregate base, with much variability from street to street.
 
Staff review of the geotechnical report found clean sands, ideal for pavement support within the project area. Additionally, groundwater is not anticipated to be a concern for the street reconstruction.
 
Proposed Improvements
The bituminous curbing is proposed to be replaced with surmountable concrete curb and gutter. At driveways, a curb cut similar to what is typically placed in B-Style curb will be placed, to avoid high transition from the roadway to driveways. The new pavement section will include 3.5-inches of new bituminous pavement over 4-inches of aggregate base. The aggregate base is proposed to be made of recycled reclamation.
 
In the project area, 8 of the 12 existing flumes were replaced with storm sewer inlets and storm sewer piping. It was not found feasible to replace the remaining 4 flumes, primarily due to the excessive grading and impact to properties which would be required.
 
Restoration of the impacted boulevards will include a minimum of 4-inches topsoil and hydroseed with a residential turf seed mix. Though the pavement is generally going back to the same location and elevation, driveway aprons will be replaced to match into the new concrete curb and gutter. In general, the boulevard impacts and driveway impacts will occur within 6 feet of the existing pavement.
 
The Zirconium Street cul-de-sac is proposed to be reconstructed into a 100-foot-diameter cul-de-sac, centered within the existing right-of-way. The existing cul-de-sac is 165 feet in diameter. By replacing the cul-de-sac to city standard dimensions, significant savings in both construction and long-term maintenance will occur. The existing driveways and boulevard adjacent to the cul-de-sac will be extended approximately 33 feet. At this time, staff are not proposing to adjust the existing right-of-way, which is 200 feet in diameter. A standard cul-de-sac has a 120-foot-diameter right-of-way. The plans angled the driveways to accommodate extending the property lines approximately 40-feet in the future, if desired. A discussion on resizing the right-of-way is proposed for a future meeting.
 
Preliminary Schedule Remaining

• Council Awards Contract to the Lowest Responsible Bidder
  • April 8, 2025
• Contractor Begins Construction
  • Spring 2025
• Contractor Substantially Completes Construction
  • New bituminous pavement in-place, topsoil and seed in-place
  • August 30, 2025
• Contractor Final Completion
  • Verify final restoration; punch list created
  • September 27, 2025

If Council awards a contract for construction, letters will be mailed to property owners with updates on the project status. Engineering staff maintain City improvement project webpages with the most current project information during construction. This can be found on the City website, Engineering Department page.

Timeframe:
Staff estimates up to 10 minutes will be required to present this case and answer questions.
 
Alternatives:
Alternative #1 – Motion to adopt Resolution #25-071 Accepting Bids and Awarding a Contract to North Valley, Inc. for the total amount of $1,366,954.38 for High Point Street Reconstructions, Improvement Project #25-05.
 
Alternative #2 – Motion of other.

Funding for this improvement is proposed to come from Pavement Management Funds and Storm Water Utility Funds.
 
On April 10, 2025 a total of eight (8) bids were received, opened, and tabulated, and the following bids were found to comply with the advertisement for bids.
 

Contractor	Total Bid
North Valley, Inc.	$1,366,954.38
Douglas-Kerr Underground	$1,441,046.72
Park Construction Company	$1,446,884.05
GMH Asphalt Corporation	$1,448,729.90
Knife River Construction	$1,519,715.15
Valley Paving, Inc.	$1,532,695.33
Asphalt Surface Technologies Corp.	$1,541,443.14
Dresel Contracting, Inc.	$1,757,749.71
Engineer’s Estimate	$1,853,622.00

 
The bid of North Valley, Inc. of Nowthen, Minnesota, in the amount of $1,366,954.38 for the total bid of said improvements in accordance with the approved plans and specifications and advertisement for bids, is the lowest responsible bidder. Adding indirect costs in the amount of 23-percent brings the total project costs to $1,681,353.89.
 
The bid is 26-percent lower than the engineer’s estimate, primarily due to lower than anticipated bituminous paving, and concrete curb and gutter prices.
 
Funding Source Breakdown:

Funding Source	Construction Costs	Indirect Costs	Total Cost
Pavement Management Funds	$1,058,076.22	$243,357.53	$1,301,433.75
Storm Sewer Utility Funds	$308,878.16	$71,041.98	$379,920.14
Project Total	$1,366,954.38	$314,399.51	$1,681,353.89

 
The CIP level estimate had a total estimated project cost of $1,986,165, which includes street costs of $1,727,100 and storm sewer costs of $259,065. The final project costs may change depending upon bid prices and actual construction quantities.
 
City staff proposes to administer and inspect construction. Plans and specifications were prepared in-house as part of staff’s normal duties.

Staff recommends Alternative #1.

Motion to adopt Resolution #25-071 Accepting Bids and Awarding a Contract to North Valley, Inc. for the total amount of $1,366,954.38 for High Point Street Reconstructions, Improvement Project #25-05.