Adopt Resolution #14-08-160 Accepting Plans and Specifications and Authorizing Advertisement for Bids for Improvement Project #14-24, Center Street Improvements.

Purpose:
The purpose of this case is to consider adopting Resolution 14-08-160 accepting plans and specifications and authorizing advertisement for bids for Improvement Project #14-24, Center Street Improvements.

Background:
City staff has been working with Hakanson Anderson since the City Council authorized Hakanson Anderson to prepare plans and specifications for the Center Street Improvements project.  Plans have since been completed and are ready to be bid.
 
The completed plans propose to construct Center Street using bituminous pavement with concrete curb and gutter, storm sewer, and designated on-street parking stalls on both sides of the street south of the existing well-house for well #5.  A temporary section is proposed to the north using bituminous pavement with bituminous curb to preserve future development opportunities for adjacent parcels.  Forty-five degree angled head-in parking will be provided west of Center Street along the City Park property, while parallel parking will be provided along the remainder of the permanent section of Center Street.  No on-street parking is proposed along the temporary section north of the existing well-house.
 
Concrete sidewalk is proposed to be constructed along the west side of Center Street for use as a future regional trail. No concrete sidewalk is proposed east of Center Street since most or the entire walk would be damaged or destroyed at the time of development of adjacent properties due to zero set-back zoning in this area of The COR, as was the case along Sunwood Drive.  Staff therefore feels it would be best to install the sidewalk at the time the adjacent parcels develop.  However, this is in contrast with the TOD grant application and Met Council staff commented that this could impact the score of the City's application, although they agreed it would not make sense to install sidewalk only to damage or remove it with development in a year or two.
 
A small amount of trunk utilities and utility services are proposed to be constructed with the project.
 
No right-of-way or easement acquisitions will be needed with this project.  All right-of-way and easements in the project area are currently owned by either the City of Ramsey or the Housing and Redevelopment Authority.
 
In addition to preparing plans and specifications, Hakanson Anderson will be responsible for coordinating the design with small utilities, obtaining all required permits, preparing final cost estimates and construction documents, managing the bid letting process, providing a letter of recommendation for award of a construction contract, and performing construction staking.

City staff ordered the Geotechnical Evaluation Report and provided it to Hakanson Anderson to assist in their final design effort. City staff also collected the required field topography data and provided it to Hakanson Anderson to assist in their final design and construction staking efforts.  City staff will also inspect construction, and will be primarily responsible for construction administration/management duties during the project, with minor assistance from Hakanson Anderson as needed.

Following Council approval, staff will publish advertisements for bids in the Anoka County Union and in Finance and Commerce on August 15^th, 22^nd, and 29^th to meet the requirements of State Statutes.

Observations:
In December of 2012, the City was successfully awarded a Transit Oriented Development (TOD) grant from the Metropolitan Council's Livable Communities Program in an amount not to exceed $650,369.  The agreement was fully executed in June of 2013.  This grant program was made available for certain areas surrounding transit opportunities throughout the metropolitan area.  The grant provides funding for the design, engineering, and partial construction of Center Street within The COR development area based on five funding groups.
 
City staff was previously informed that construction must be complete by April 30, 2015 for the City to be eligible to receive the TOD grant funding.  However, on Tuesday, August 5^th, staff was informed by the Met Council that we actually have until December 31, 2015 to complete construction.  Therefore, the project may now either be bid this fall to achieve substantial completion in 2014, with minor punch list work to be completed in May of 2015, or the project could be bid in the spring of 2015 to allow construction to be completed by August of 2015.
 
Bidding the project now would allow the project to be completed in the spring of 2015.  This could assist in the marketability of the adjacent properties in The COR.  However, staff is hearing that the bidding environment is not favorable right now because of a heavy back-log of work being experienced by contractors due to the wet spring which is resulting in fewer and higher bids on similar public improvement projects.  Conversely, bidding the project in the spring of 2015 would allow the City to take advantage of what has typically been the most competitive bidding environment.  However, the construction of Center Street would then not be completed until August of 2015 which may dampen the marketability of adjacent properties in The COR.  Either way, the Happy Days event will not be impacted.
 
It should be noted that bidding the project now does not mean that the Council has to accept the low bid.  The City has the right to reject all bids and bid the project at a later date.  However, doing so may have a negative effect on one or more of the contractors that bid the project and they may add a little extra to the subsequent bid to make up for their losses on the un-awarded bid.
 
Staff was also recently informed by the Met Council that we will need to update all funding group estimates following bids to verify which of the project elements are eligible for TOD grant funding. Staff will work through this recent request with Met Council staff as fast as we can so that when bids come in we are positioned to capture the maximum amount of awarded TOD grant funding.  However, any items not covered by TOD grant funding would then need to be paid for from another funding source.  This will take some time to work through with the Met Council, but staff feels confident that this can be done within the next few weeks.    
 
Alternatives:
Alternative Action #1 - Motion to adopt Resolution 14-08-160 accepting plans and specifications and authorizing advertisement for bids for Improvement Project #14-24, Center Street Improvements.  This action should be selected if Council wishes to bid the project now for fall 2014 construction.
 
Alternative Action #2 - Motion denying adoption of Resolution 14-08-160. This action should be selected if Council wishes to bid the project in the spring of 2015 for spring/summer 2015 construction.

This project is proposed to be funded almost entirely using TOD grant funds in an amount not to exceed $650,369.  The plans and associated engineer’s estimate seek to capture all available TOD grant funding, but this will depend in large part on the bids received.  Utility improvements are not eligible for TOD grant funding and will therefore be funded entirely through the appropriate utility fund.

Staff recommends constructing this project to provide an important north-south connector street through the COR, and to take advantage of the awarded TOD grant funding.  However, considering that the TOD grant funding sunset date is now December 31, 2015, the timing of the bids should coincide with the desired goals for this project as discussed above.

Adopt Resolution 14-08-160 accepting plans and specifications and authorizing advertisement for bids for Improvement Project #14-24, Center Street Improvements.