Adopt Resolution #26-049 Accepting Bids and Awarding Contract for Section 01 Unplatted Street Reconstructions, Improvement Project #26-07

Purpose:
The purpose of this case is to adopt Resolution #26-049 accepting bids and awarding a contract to North Valley, Inc. for the total amount of $1,189,848.87 for Section 01 Unplatted Street Reconstructions, Improvement Project #26-07.
 
Background:
The 2026 – 2035 Capital Improvement Plan (CIP) identifies the streets within the Section 01 Unplatted south of CR 27 subdivision for street reconstruction in 2026. A street segment summary for the project is attached to this case.
 
Project History

• April 22, 2025, the Ramsey City Council adopted Resolution #25-082, accepting and awarding a proposal to Bolton & Menk for topographic survey of the project area.
• May 13, 2025, the Ramsey City Council adopted Resolution #25-101, accepting and awarding a proposal to Independent Testing Technologies for a geotechnical report of the project area.
• June 17, 2025, the Ramsey Public Works Committee recommended City Council order plans and specifications for said improvements.
• June 24, 2025, the Ramsey City Council adopted Resolution #25-141, ordering plans and specifications for said improvements.
• November 13, 2025, staff held a public open house for property owners impacted by these improvements. The open house was attended by 5 residents.
• December 16, 2025, the Ramsey Public Works Committee recommended City Council approve plans and specifications and authorize advertisement for bids for said improvements.
• January 13, 2026, the Ramsey City Council adopted Resolution #26-010 approving final plans and specifications and authorizing advertisement for bids for said improvements.
• February 12, 2026, Ramsey staff publicly opened bids for said improvements.

 
Project Scope
This project proposes to reconstruct the streets within the Section 01 Unplatted subdivision, generally located west of CSAH 7 and south of 179^th Lane (CR 27). The streets are 24-foot wide with a combination of rural and urban with bituminous curbing. Much of the bituminous curbing appears to be placed to address localized drainage within the subdivision, and eventually runs to flumes and swales. The streets total 1.44 miles in length. Drainage is handled through ditches adjacent to the streets, and runs to ponds and wetlands, which exist throughout the project area.
 
The streets within Section 01 Unplatted were constructed in 1980 and received an overlay in 1999. GPR data shows an average pavement section of 6.6-inches, including 4.0-inches of bituminous and 2.6-inches of aggregate base.
 
The reconstruction of the streets is generally proposed to be a Full-Depth Reclamation (FDR). Bituminous curbing is proposed to be replaced with surmountable concrete curb and gutter where necessary for drainage. After review of the geotechnical report, soil correction will be required along 178^th Lane, 179^th Avenue, and the north half of Tonto Street. Soil corrections will include the removal and replacement of 1-foot of subbase material below the roadway. The pavement section will include 3.5-inches of bituminous over 6-inches aggregate base. The aggregate base is anticipated to be made up of recycled reclamation material.
 
During design, staff focused on stormwater analysis to determine the proper location for curb and gutter. In general, the location of curb and gutter will match existing locations, though the overall amount was able to be reduced. The project will include replacing the existing street crossing culverts with concrete culverts. In the areas with curb and gutter, catch basin inlets in the curb line will replace bituminous flumes, which will be easier and more cost efficient to maintain.
 
Restoration of the impacted boulevards will include a minimum of 4-inches topsoil and hydroseed with a residential turf seed mix. In areas of steep side slopes, erosion control blanket will be used. Minor grading of the swales to match into the new culverts is proposed. Several hundred feet of the Tonto Street swale south of 179^th Lane (CR 27) is proposed to be slightly modified to alleviate standing water after rain events. Additionally, minor grading in the ditch and culvert cleaning will be performed to remove standing water on the south side of 178^th Lane. Per typical reconstruction projects, boulevard and driveway impacts are anticipated to occur within 6 to 8 feet behind the existing edge of pavement and bituminous curbing.
 
Municipal utilities do not exist within the project area, extension of municipal utilities to this subdivision are not proposed as it is outside of the 2040 MUSA.
 
Preliminary Schedule Remaining

• Council Awards Contract to the Lowest Responsible Bidder
  • February 24, 2026
• Contractor Begins Construction
  • Spring / Summer 2026
• Contractor Substantially Complete Construction
  • New bituminous pavement in-place, topsoil and seed in-place
  • August 28, 2026
• Contractor Final Completion
  • Verify final restoration; punch list created
  • October 2, 2026

If City Council awards a contract for construction, letters will be mailed to property owners with updates on the project status. Engineering staff maintains City Improvement project webpages with the most current project information. 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 #26-049 accepting bids and awarding a contract to North Valley, Inc. for the total amount of $1,189,848.87 for Section 01 Unplatted Street Reconstructions, Improvement Project #26-07.
 
Alternative #2 – Motion of other.

Funding for this improvement is proposed to come from Pavement Management Funds and Storm Water Utility Funds.
 
On February 12, 2026 a total of seven (7) 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.	$1,189,848.87
Omann Brothers Paving, Inc.	$1,194,163.46
Park Construction Company	$1,204100.05
Douglas-Kerr Underground, L.L.C.	$1,209,437.54
GMH Asphalt Corporation	$1,219,307.49
Knife River Corporation – North Central	$1,278,141.70
Northwest	$1,574,324.80
Engineer’s Estimate	$1,316,243.00

 
The bid of North Valley, Inc. of Nowthen, Minnesota, in the amount of $1,189,848.87 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 $1,463,514.11
 
The bid is 10-percent lower than the engineer’s estimate, primarily due to lower than anticipated aggregate, earthwork, and mobilization prices.
 
Funding Source Breakdown:
 

Funding Source	Construction Costs	Indirect Costs	Total Cost
Pavement Management	$1,061,651.94	$244,179.95	$1,305,831.88
Storm Sewer Utility	$128,196.93	$29,485.29	$157,682.23
Project Total	$1,189,848.87	$273,665.24	$1,463,514.11

 
Bolton & Menk has submitted a proposal for construction staking and as-built survey of said improvements for the total not-to-exceed amount of $50,424.00. Construction staking is included in the indirect costs, and is proposed to be paid for by Pavement Management and Storm Sewer Utility funds.
 
The CIP level estimate had a total estimated project cost of $1,013,472, which included street costs of $881,280 and storm sewer costs of $132,192. The final project costs may change depending upon bid prices and actual construction quantities.

Staff recommends adopting Resolution #26-049 accepting bids and awarding a contract to North Valley, Inc. for the total amount of $1,189,848.87 for Section 01 Unplatted Street Reconstructions, Improvement Project #26-07.

Motion to adopt Resolution #26-049 accepting bids and awarding a contract to North Valley, Inc. for the total amount of $1,189,848.87 for Section 01 Unplatted Street Reconstructions, Improvement Project #26-07.