Adopt Resolution #16-05-097 Accepting Bids and Awarding Contract for Improvement Project #16-00 Division C, Andrie Street and 164 Lane Reconstruction

Purpose:
The purpose of this case is to consider adopting Resolution #16-05-097 accepting bids and awarding a contract for constructing Improvement Project #16-00 Division C, Andrie Street and 164th Lane Reconstruction.

Background:
City of Ramsey Improvement Project #16-00 Division C proposes to reconstruct the pavement, improve the storm sewer system, and complete other appurtenant work on two urban street segments connecting Alpine Drive and Jarvis Street through the Northfork development in the southwest corner of the City. The street segments proposed to be reconstructed total approximately 9,963 linear feet (1.89 miles) in length and include Andrie Street (approx. 6,312 linear feet) from Alpine Drive to 164th Lane, and 164th Lane (approx. 3,651 linear feet) from Andrie Street to Jarvis Street. A layout showing the scope of the proposed improvements is included on the attached title sheet of the final plans.

Andrie Street and 164th Lane were both constructed in 1985 using bituminous pavement and bituminous curbs at a width of 31 feet from back-of-curb to back-of-curb. Both streets have minimum grades and an insufficient number of catch basins to effectively drain stormwater runoff.  This has resulted in an accelerated deterioration of the pavement. City crews have therefore been patching these streets multiple times a year, especially right before winter months to allow the streets to be plowed without further damaging the pavement up in the process.

City staff annually evaluates and rates the pavement conditions on all city streets using the Pavement and Surface Evaluation Rating (PASER) system. In the fall of 2015, the pavement sections of the above-referenced street segments had PASER ratings of 2, ranking them as some of the worst street segments in the City. A PASER rating of 2 also implies that these streets are past the point of applying an overlay so the streets require complete reconstruction.

The final design included in the plans and specifications provides for reconstructing both streets to a width of 33 feet from back-of-curb to back-of-curb (2 feet wider than existing) using B618 concrete curb and gutter, a bituminous pavement section of 3½“ bituminous pavement over 6” of modified class 5 aggregate base, an improved storm sewer system, and a designated on-street parking lane along one side of the streets (north and east sides), including signing and striping to designate the on-street parking lane. No centerline or edge striping is proposed but NO PARKING signs are proposed along the side of the streets without designated on-street parking (south and west sides). This design provides a compromise allowing the City to meet Minnesota Department of Transportation (MnDOT) State Aid standards, while also addressing concerns raised by Northfork property owners regarding keeping street widths as narrow as practical to minimize traffic speeds and to minimize loss of mature boulevard trees.

Public utilities do not exist within these street corridors and the City has no plans to serve this area with public utilities so sanitary sewer and watermain improvements are not proposed with this project.

Per City Council direction on January 26^th, final plans and specifications were prepared in-house by City staff. On April 12^th the City Council accepted final plans and specifications and authorized advertisements for bids. On May 17^th, a total of five (5) sealed bids were received and publicly opened and read aloud, then checked for errors and omissions and tabulated.  All five bids were found to be competitive and favorable, complied with the advertisement for bids, and no adjustments were required.  A summary of the bids is included below and in the attached resolution.
 
 

CONTRACTOR	TOTAL BID
Douglas-Kerr Underground, LLC	$1,568,162.65
Midwest Asphalt Corporation	$1,661,736.20
North Valley, Inc.	$1,754,703.11
Veit & Company, Inc.	$1,776,664.87
Park Construction Company	$1,930,316.99
Engineer’s Estimate	$1,989,875.10

 
Of the five bids received, the lowest responsible bid was submitted by Douglas-Kerr Underground, LLC of Mora, Minnesota, in the amount of $1,568,162.65.  This is $421,712.45, or 21.2%, less than the engineer’s estimate of $1,989,875.10.
 
Following award of contract, staff will immediately issue a Notice of Award to Douglas-Kerr Underground to initiate execution of a contract and issuance of the required bonds and insurance.  The City Attorney will verify that the contract and bonds and insurance are in proper legal form prior to execution of the contract. Once the contract is executed, staff will issue a Notice to Proceed and construction may then begin.  At this time it is anticipated that construction will begin the first week of June, and will be completed this fall.

Advertisements for bids were published in the Anoka Union Herald and in Finance and Commerce on April 15th and April 22nd.

Observations:
Per Council direction, staff worked with the Northfork Homeowners Association (NFHOA) Board to obtain a permanent pedestrian trail easement agreement to provide for the future construction of a paved public trail connection between Jarvis Street and the existing paved trail that terminates near the north edge of the Northfork development approximately 0.8 miles east of Jarvis Street.  See the attached north trail corridor exhibit for reference. This trail connection will serve as an alternate connection to the pedestrian facility previously proposed along Andrie Street and 164th Lane and per the attached Master Park and Trail Plan. A subsequent case will request Council approval of this trail easement agreement which was signed by the President of the NFHOA and notarized on May 19^th.
 
Alternatives:
Alternative #1 – Motion to adopt Resolution #16-05-097 accepting bids and awarding a contract for Improvement Project #16-00 Division C, Andrie Street and 164th Lane Reconstruction.

Alternative #2 – Motion to deny adoption of Resolution #16-05-097 at this time.

The low bid submitted by Douglas-Kerr Underground, LLC of Mora, Minnesota, is in the amount of $1,568,162.65.  After adding indirect costs for administrative (6%), engineering (15%), finance (1%), and legal (1%) costs, the total project cost is $1,928,840.06 based on the low bid.  
 
The improvements are proposed to be funded using a combination of street reconstruction bond proceeds, special assessments to benefiting properties, street reconstruction funds, and stormwater utility funds as follows;
 

• Street reconstruction bonds = $1,424,384.71 (includes special assessment portion of project costs)
• Special assessments = $419,705 (25% of eligible project costs per assessment policy)
• Street reconstruction funds = $203,358.75 (current fund balance is approximately $400,000)
• Stormwater utility funds = $197,275.45

Special assessments are based on eligible project costs which do not include costs related to oversizing the existing street, either in width or pavement thickness.  Based on bid prices, staff has estimated oversizing costs for this project in the amount of $203,358.75 which includes costs for widening the street by 2 feet, and for increasing the structural capacity of the pavement to meet State Aid standards.  The estimated assessable project cost based on bid prices is therefore $1,678,708.80 which would result in individual assessments of $6,457 per parcel, assuming final project costs are equal to bid prices, and that final assessments are approved by the City Council in the amount of 25% of final eligible construction costs.  This represents nearly a 30% reduction in special assessments from the preliminarily approved assessment amount of $9,150 per parcel.
 
Staff will order a special benefit consultation report for this project upon award of construction contract to provide proof of benefit for the Assessment Hearing scheduled for October 11^th.

City staff recommends alternative #1.

Adopt Resolution #16-05-097 accepting bids and awarding a contract for Improvement Project #16-00 Division C, Andrie Street and 164th Lane Reconstruction.