Approve Resolution #13-11-187 Awarding Bids for the Central Park to Alpine Drive Trail

In July of 2012, the city was informed of a successful trail grant application to the Minnesota DNR for the Central Park to Alpine Drive trail.  This $100,000 award will assist in the construction of a 1.2 mile trail that fills an important 'gap' in an area with an otherwise well-connected trail system in the southwestern portion of the city.  On September 24th, 2013 Council authorized staff to prepare plans and specs and advertise for bids.

The trail is shown in 'red' on the first attached exhibit.

 

On October 31st, 2013 nine (9) bids were opened and read aloud. The following table is the Bid Tabulation, with North Metro Asphalt & Contacting found to be the low bidder for this project at $186,141.02.

 

Bidder	Bid
North Metro Asphalt & Contracting, Ham Lake	$186,141.02
Dryden Excavating, Nowthen	$201,012.22
New Look Contracting, Elk River	$205,659.75
North Valley Inc. Nowthen	$207,752.41
Omann Bros., Albertville	$218,263.67
Blackstone Contractors, Corcoran	$230,836.13
Hardrives Inc., Rogers	$232,925.97
North Pine Aggregate, Forest Lake	$254,730.70
Barber Construction, St. Bonifacius	$283,925.00
Engineer's Estimate	$221,881.50

Additional bidding detail is revealed in the attached award memo.

While City Council is very familiar with this project, the following value observations are offered for public information and benefit:

• The anticipated construction cost was originally estimated between $250-$290,000 thousand dollars which would have exceeded the 50% match amount of a maximum of $100,000 from the DNR.  Now that the project expense is found to be significantly lower, two favorable facts are to be noted.  The first is self-evident, and that is less monies are needed from the Park Trust Fund (trail fees collected from developers), and therefore there are more dollars available for future park and trail projects.  The second is that now staff may carefully document administration and engineering time for 50% reimbursement from the DNR (over and above contracted construction costs), and up to $13,858 may be directed back to the Park Trust Fund.

• Additionally, it is noteworthy to point out that the Class-V aggregate base for the trail (loaded and hauled by the contractor), was specified for the project from that material acquired as part of the Bury and Carlson early lease termination agreement.  This has now been documented to have saved the city $11,844 on the first project for which this material was specified.
   

This project must be complete, with all expenses incurred and paid for, before the end of June 2014 in order to receive DNR reimbursement.  Liquidated Damages in an amount up to $100,000 are included within the contract documents to ensure this project is completed on time.  Additionally, approval by Council of the Resolution and this case, shall be direction to Staff to identify with the contractor a programmatic project schedule which shall be referenced within the contract.  This mutually agreed upon schedule shall be 'extra' enforceable insurance that the City's project remains a priority of the contractor, and thus assures success.

The City is required to award the project to the lowest "qualified" bidder.  Past project performance issues with any particular contractor do not by themselves mean that they are not qualified to receive the bid.  Their have been some issues apparent on other projects involving the low bidder, however,  City needs to enforce performance through the contract, inspections, and financial guarantees.  Staff will be prepared to answer questions about this process as desired.

 

Primary funding is from the Minnesota DNR's Local Trail Connections program in the amount of $100,000.

The balance of the costs will be from the Park Trust Fund which had a beginning-year balance of approximately $2 million dollars. The precise amount is yet to be identified as some contracted engineering costs will be expensed from the fund for construction staking etc.; and thereafter, grant reimbursements (50%) will be sought for administration and engineering - with the net impact to the Park Trust Fund estimated to be between $72,283 and $86,141.02.

Staff recommends approving Resolution #13-11-187 accepting the bid and awarding the contract for the construction of the Central Park to Alpine Drive Trail.

Motion to approve Resolution #13-11-187 accepting the bid and awarding the contract for the construction of the Central Park to Alpine Drive Trail to North Metro Asphalt & Contracting.