Adopt Resolution #26-050 Accepting Bids and Awarding Contract for MSA Bunker Lake Boulevard Reconstruction, Improvement Project #26-01

Purpose:
The purpose of this case is to adopt Resolution #26-050 accepting bids and awarding a contract to North Valley, Inc. for the total amount of $1,066,382.87 for MSA Bunker Lake Boulevard Reconstruction, Improvement Project #26-01. Also, to adopt Resolution #26-061 approving the terms of up to a $2,000,000 interfund loan in connection with infrastructure improvements – Bunker Lake Boulevard Reconstruction in connection with Tax Increment Financing District No.18.
 
Background:
The 2026 – 2035 Capital Improvement Program (CIP) identifies Bunker Lake Boulevard between Armstrong Boulevard and 600 feet west of Jackal Street (the tie-in point from the 2018 project) for reconstruction in 2026. A street segment summary is attached to this case.
 
Project History

• April 22, 2025, the Ramsey City Council adopted Resolution #25-081, ordering plans and specifications and awarding engineering design services to Bolton & Menk for said improvements.
• 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 #26-008 approving final plans and specifications and authorizing advertisement of bids for said improvements.
• January 27, 2026, the Ramsey City Council adopted Resolution #26-027 amending the design services proposal from Bolton & Menk for said improvements.
• February 12, 2026 Bolton & Menk publicly opened bids for said improvements. A contract award recommendation is attached to this case.

 
Project Scope
This project proposes to reconstruct Bunker Lake Boulevard in a similar fashion to the previously reconstructed Bunker Lake Boulevard and Puma Street segments. The existing street is 28-feet wide with concrete curb and gutter on the north side (westbound) and rural section including a drainage swale on the south side (eastbound). The project proposes expanding the pavement to the south, to create a shared center turn lane. The new eastbound lane is proposed to include concrete curb and gutter, the existing drainage swale is proposed to be re-graded. Storm sewer inlets will be placed in the eastbound curb line, tying into existing stubs.
 
Bunker Lake Boulevard is an MSA street, which will require it to be built to MSA standards, including a 10-ton pavement strength design. This will be achieved by placing 4.5-inches of new bituminous over a minimum of 6.5” aggregate base made up of recycled reclamation material. Bituminous trail exists on the north side of Bunker Lake Boulevard, the project does not propose to improve the existing trail. The western half of this segment has been developed with commercial/industrial users. The eastern half is generally not developed, a gas station is currently being built at the southwest corner of Bunker Lake Boulevard and Armstrong Boulevard. Coordination with proposed developments has been occurring during the project design. The project totals 0.47 miles in length.
 
To accommodate the ultimate buildout of the area, space is being created for a 2^nd eastbound right turn or combo thru/right turn onto Armstrong Boulevard. This project will mark dedicated left, two dedicated thru and a dedicated right turn eastbound at Armstrong Boulevard. The new Kwik Trip gas station is building a right in / right out onto Bunker Lake Boulevard. To accommodate these additions, the center concrete median west of Armstrong Boulevard is being modified, additional modifications are required to the existing traffic signal system at Armstrong Boulevard. The City and Engineer have coordinated these modifications with both Anoka County and Kwik Trip.
 
Due to the nature of the work, the project is proposing to close Bunker Lake Boulevard between Jackal Street and Armstrong Boulevard during construction. A detour route along Puma Street and Alpine Drive will be used.
 
Utilities
Sanitary sewer, watermain and storm sewer exist within the project area. Additional storm sewer will be required to extend to the eastbound curb line. The existing swale on the south side of Bunker will be remaining in-place to accommodate drainage, but will be re-graded as necessary. Repairs to the existing sanitary sewer are not proposed. The existing hydrants will be relocated to be within 5 feet of the new eastbound curb lane.
 
Staff is proposing to complete these improvements in the first half of the summer construction season in 2026. This will be in-line with the completion of the Kwik Trip construction at the SW corner of Bunker Lake Boulevard and Armstrong Boulevard.
 
Preliminary Schedule Remaining

• Council Awards Contract to the Lowest Responsible Bidder
  • February 24, 2026
• Contractor Begins Construction
  • Spring 2026
• Contractor Substantially Completes Construction
  • New bituminous pavement in-place, topsoil and seed in-place
  • July 31, 2026
• Contractor Final Completion
  • Verify final restoration; punch list created
  • August 31, 2026

 
 
Additional Permitting
Because Bunker Lake Boulevard is a Municipal State Aid Street and MnDOT MSA Funding is required, plans were reviewed and approved by MnDOT State Aid prior to the bid opening. This project will impact the Anoka County right-of-way, including impacts to the signal system at Bunker Lake Boulevard and Armstrong Boulevard, and will require an Anoka County Highway Department right-of-way permit prior to construction starting. Bolton & Menk routed plans through Anoka County and obtained sign off of the plans prior to MnDOT State Aid approval.
 

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 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 #26-050 accepting bids and awarding a contract to North Valley, Inc. for the total amount of $1,066,382.87 for MSA Bunker Lake Boulevard Reconstruction, Improvement Project #26-01. Adopt Resolution #26-061 approving the terms of up to a $2,000,000 interfund loan in connection with infrastructure improvements – Bunker Lake Boulevard Reconstruction in connection with Tax Increment Financing District No.18.
 
Alternative #2 – Motion of other.

Funding for this improvement is proposed to come from Public Improvement Revolving Funds (developer fees), Tax Increment #18, Municipal State Aid Funds, Water Utility Funds and Storm Water Utility Funds.
 
The Tax Increment #18 funding is an estimate based on availability at this time. Resolution #26-061 is attached to this case, which proposes to set up an interfund loan, allowing the city to reimburse the qualified costs back to itself from the TIF District in the future. Fifty-six-percent (56%) of the total project costs qualify for TIF #18 funding.
 
On February 12, 2026 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.	$1,066,382.87
Forest Lake Contracting, Inc.	$1,100,364.50
Valley Paving, Inc.	$1,119,770.78
Douglas-Kerr Underground, L.L.C.	$1,122,881.06
New Look Contracting, Inc.	$1,137,841.75
Park Construction Company	$1,165,297.40
Northwest	$1,274,866.66
Dresel Contracting, Inc.	$1,434,658.03
Engineer’s Estimate	$1,208,370.00

 
The bid of North Valley, Inc. of Nowthen, Minnesota, in the amount of $1,066,382.87 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 $1,311,650.93.
 
The bid is 12-percent lower than the engineer’s estimate, primarily due to lower than anticipated excavation and earthwork prices.
 
Funding Source Breakdown (Project Costs including 23-percent Indirect Costs):
Public Improvement Revolving Funds           $391,000.00
Tax Increment #18 Funds*                             $386,750.00
Municipal State Aid Funds                             $252,237.86
Water Utility Funds                                        $106,716.43
Storm Water Utility Funds                             $174,946.64
Project Total                                                  $1,311,650.93
 
*$386,750.00 of TIF #18 funds are anticipated to be available by the end of 2026. Fifty-six percent (56%) of the total project costs qualify for TIF #18 funding. Based on the bid prices, this can be up to $734,524.52.
 
Bolton & Menk has submitted a proposal for construction services including construction staking, as-built services, and being available to answer design related questions during construction for the total not-to-exceed amount of $34,091.00. These costs are included in the indirect costs.
 
City staff proposes to administer and inspect construction.
 
The CIP level estimate had a total estimated project cost of $826,965, which includes street costs $777,750 and storm sewer costs of $49,215. The final project costs may change depending upon bid prices and actual construction quantities.

Bolton & Menk has provided an award memo, which states if the City of Ramsey decides to award the project to the low bidder, they recommend awarding the contract to North Valley, Inc. The memo is attached to this case for reference.
 
Staff recommends adopting Resolution #26-050 accepting bids and awarding a contract to North Valley, Inc. for the total amount of $1,066,382.87 for MSA Bunker Lake Boulevard Reconstruction, Improvement Project #26-01. Also, to adopt Resolution #26-061 approving the terms of up to a $2,000,000 interfund loan in connection with infrastructure improvements – Bunker Lake Boulevard Reconstruction in connection with Tax Increment Financing District No.18.

Motion to adopt Resolution #26-050 accepting bids and awarding a contract to North Valley, Inc. for the total amount of $1,066,382.87 for MSA Bunker Lake Boulevard Reconstruction, Improvement Project #26-01. Adopt Resolution #26-061 approving the terms of up to a $2,000,000 interfund loan in connection with infrastructure improvements – Bunker Lake Boulevard Reconstruction in connection with Tax Increment Financing District No.18.