Purpose:
The purpose of this case is to accept bids and award a contract for Improvement Project 14-24, Center Street Improvements – Sunwood Drive to Ramsey Parkway.

Background:
In December of 2012, the City was 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.

The final design for Center Street between Sunwood Drive and the north side of well-house #3 is proposed to be permanent construction utilizing bituminous pavement, concrete curb and gutter, concrete sidewalk, storm sewer, sanitary sewer and watermain extensions, street lights, and other appurtenant improvements.  North of well-house #3, Center Street will be constructed as a temporary section using bituminous curb and trail sections to more cost-effectively facilitate future development opportunities for adjacent parcels.  In addition, no sidewalk is proposed east of Center Street to prevent damaging the sidewalk during development of adjacent properties due to zero set-back zoning in this area of The COR, which is anticipated to occur in the near future. Staff therefore believes it would be best to install the sidewalk at the time the adjacent parcels develop. While this is in contrast with the TOD grant application, Met Council staff agreed it would not make sense to install sidewalk only to damage or remove it due to development in the near future.
 
Designated on-street parking stalls are proposed on both sides of Center Street with 45-degree angled head-in parking on the west side of Center Street along the Park property, and parallel parking on the east side of Center Street along the remainder of the permanent section of Center Street.  No on-street parking is proposed along the temporary section of Center Street.

On August 11^th the City Council accepted plans and specifications for Improvement Project 14-24; Center Street Improvements, and authorized advertisements for bids.  Advertisements for bids were then published in accordance with State Statues.  As discussed with Council on August 11^th, the project must be completed by December 31, 2015 in order for the City to be eligible to receive the TOD grant funding.  Council directed staff to bid the project allowing a construction window starting in the fall of 2014 and ending prior to the 2015 Happy Days event.  The project specifications were therefore revised to allow construction to be completed between September 15, 2014, and July 30, 2015, to allow the new turf to become well-established before the 2015 Happy Days event.

On September 5^th, bids were publicly opened, read aloud, and checked for errors and omissions. A total of eight bids were received and found to comply with the advertisement for bids. Bid prices were favorable and ranged from about 10% less to 19% more than the engineer's estimate for construction costs which was $539,402. A tabulation of the bid results is included below.
 
 

BIDDING CONTRACTOR	TOTAL BID
Douglas-Kerr Underground, LLC	$483,331.31
Dryden Excavating, Inc.	$496,729.17*
LaTour Construction, Inc.	$520,977.50*
New Look Contracting, Inc.	$547,073.42
Dave Perkins Contracting, Inc.	$559,662.00
Kuechle Underground, Inc.	$585,239.21
Peterson Companies, Inc.	$585,354.61*
Northdale Construction Company, Inc.	$643,141.71
Engineer’s Estimate	$539,402.00

* Indicates corrected bid amount.

If bids are accepted and a contract is awarded, work may begin after September 14^th but must be completed by July 30, 2015.

A tabulation of the bids has been provided to the Met Council and City staff is working with Met Council staff to verify the eligible funding amounts for each of the five (5) funding categories per the bids. Based on City staff’s latest communications with Met Council staff, the only items ineligible for funding through the TOD grant are topsoil, landscaping, and turf establishment, which are estimated to total less than $20,000.  All other items are anticipated to be eligible for funding, though staff is still awaiting confirmation on whether our requested grant amendment to add the construction of 145^th Avenue east of Center Street, as well as all benches, bike racks, and trash receptacles, will be approved.  However, staff’s current understanding is that the Met Council will fund these through the TOD grant.

In addition to preparing plans and specifications, Hakanson Anderson is responsible for coordinating the design with private utilities, obtaining all required permits, preparing final cost estimates and construction documents, managing the bid letting process, checking bids for errors and omissions, providing a letter of recommendation for award of a construction contract, and performing construction staking.

City staff ordered the Geotechnical Evaluation Report and collected the required field topography data, both of which were provided 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.

Observations:
Completion of this project will assist in the marketability of adjacent undeveloped properties in The COR.
 
Alternatives:
Alternative #1 - Motion to accept bids and award a contract to Douglas-Kerr Underground, LLC in the amount of $483,331.31 for Improvement Project 14-24, Center Street Improvements – Sunwood Drive to Ramsey Parkway.

Alternative #2 - Motion to deny accepting bids and awarding a contract for Improvement Project 14-24 this time.

This project is proposed to be funded almost entirely with TOD grant funds not to exceed $650,369.  Staff is currently of the understanding that the only ineligible costs that the City will be responsible for funding are for topsoil, landscaping, and turf establishment, which are estimated to cost less than $20,000.
 
No assessments are proposed to be levied with this project.

Hakanson Anderson and City staff recommend adopting Resolution 14-09-181 accepting bids and awarding a contract to Douglas-Kerr Underground, LLC in the amount of $483,331.31 for Improvement Project 14-24, Center Street Improvements – Sunwood Drive to Ramsey Parkway.  Attached is a copy of Resolution 14-09-181, as well as Hakanson Anderson’s letter of recommendation and tabulation of bids.