Adopt Resolution #16-06-121 Accepting Bids and Awarding Contract for Improvement Project #16-36, Business Park 95 Regional Stormwater Pond Improvements

Purpose:
The purpose of this case is to consider adopting Resolution #16-06-121 accepting bids and awarding a contract for construction for City Improvement Project #16-36, Business Park 95 Regional Stormwater Pond Improvements.

Background:
When the City of Ramsey developed Business Park 95, an existing low area was set aside to provide minimal stormwater ponding with no outlet controls. Available City records indicate the capacity of this ponding area was intended to be increased, and that an outlet was intended to be constructed, when warranted by future development.  However, the pond capacity was never increased and an outlet was never constructed, and the business park is now almost fully developed.

The recent business expansion of Dedicated Networks disturbed more than one acre, necessitating a Lower Rum River Watershed Management Organization (LRRWMO) Permit.  The site was not large enough to accommodate the building expansion and the required increased stormwater ponding. The developer therefore approached the City about enlarging the existing pond area to accept runoff from the new building expansion. The stormwater management plan for Dedicated Networks provided for infiltration of runoff from the new impervious surfaces, with ponding provided in an adjacent regional pond.  The LRRWMO Board approved Dedicated Networks permit application, but approval was contingent on the City’s commitment to constructing an outlet for the pond in 2016.
 
Until such time that a pond outlet is constructed and the capacity of the pond is increased, future WMO permit applications related to expansion requests for the remaining properties served by this pond will likely be denied.
 
On January 11^th, 2016, the City Council directed the City Engineer to prepare a Feasibility Report for completing improvements to the Business Park 95 regional stormwater pond to increase its storage capacity and provide a positive outlet.  The proposed improvements were designated as Improvement Project #16-36, Business Park 95 Regional Stormwater Pond Improvements.
 
On February 16^th the Public Works Committee reviewed the draft Feasibility Report and recommended City Council approval.
 
On February 23^rd the Ramsey City Council accepted the Feasibility Report and ordered staff to prepare final plans and specifications for the proposed improvements.
 
On May 24^th the City Council accepted final plans and specifications and authorized advertisements for bids. One addendum was issued during the bidding process for the purpose of revising a street name on the title sheet and revising the bid proposal to add removal items for 62 feet of storm sewer pipe, one catch basin, and one pipe apron.
 
On June 21^st six (6) sealed bids were received and publicly opened and read aloud.  City staff then checked each bid for errors and omissions and tabulated the bids.  All bids were found to be competitive and favorable and complied with the advertisement for bids.  Two bids required adjustments based on staff review as noted in the bid summary tabulation below (and in the attached resolution).
 
 

CONTRACTOR	TOTAL BID
New Look Contracting, Inc.	$165,480.50
Matt Bullock Contracting Company, Inc.	$168,869.90
Veit & Company, Inc.	$174,041.17
Dryden Excavating, Inc.	$190,746.80*
Ramsey Excavating Co.	$228,027.70
All Metro Excavating Inc.	$226,158.50*
Engineer’s Estimate	$181,777.05

 
* Bid amount adjusted based on unit prices submitted.
 
Of the six bids received, the lowest responsible bid was submitted by New Look Contracting, Inc. of Rogers, Minnesota, in the amount of $165,480.50.  This bid is $16,296.55 or 9% less than the engineer’s estimate of $181,777.05.
 
Following award of contract, staff will issue a Notice of Award to New Look Contracting, Inc. to initiate execution of a contract and the issuance of required bonds and insurance.  The City Attorney will then verify the contract, bonds and insurance are in the proper amounts and are in proper legal form prior to execution of the contract. Once the contract is executed, staff will issue a Notice to Proceed allowing construction to begin. At this time it is anticipated construction will begin on or after July 11^th and will be completed within 60 days after work starts.

No notifications were required for this case.  Advertisements for bids were published in the Anoka Union Herald and in Finance and Commerce on May 27th and June 3rd, 2016.

Observations:
The storm sewer improvements proposed to be constructed within public drainage and utility easements between the properties at 6250 and 6390 McKinley Street are located between a parking lot and a drive aisle, both of which have paved surfaces with curb and gutter.  Construction will be completed so as to negate or minimize disturbance to any private infrastructure. At the time this case was prepared, Staff had not yet had the opportunity to discuss the proposed improvements and work schedule with the business/property owners.  If Staff is able to meet with the business/property owners prior to the Council meeting, any pertinent information will be shared with Council during Staff’s presentation.  Otherwise, Staff will coordinate the proposed work with the business/property owners to ensure this work will not negatively impact the properties or business operations.

Alternatives:
Alternative #1 – Motion adopting Resolution #16-06-121 accepting bids and awarding a contract for construction for City Improvement Project #16-36, Business Park 95 Regional Stormwater Pond Improvements.

Alternative #2 – Motion denying adoption of Resolution #16-06-121 at this time.

Both the Feasibility Report and final Plans and Specifications were completed in-house as part of staff’s regular duties. No outside expenses were incurred for preparation of either of these products.

Actual project costs based on the low bid are $203,541.02 which includes 23% indirect costs for administrative (6%), engineering (15%), finance (1%), and legal (1%) fees.
 
The improvements are proposed to be funded utilizing a combination of one-third Stormwater Management Funds and two-thirds Stormwater Utility Funds.  This split was arrived at following a discussion between Staff and the Public Works Committee on February 16^th when the Committee asked for clarification on how the City applies both Stormwater Management and Stormwater Utility Funds to projects, noting concerns that these funds are heavily targeted as funding sources for future projects listed in the CIP.
 
Special assessments are not proposed since the City intended to construct the pond improvements during development of the business park, but the pond improvements never occurred.

Staff recommends approval of Alternative #1 to allow the necessary pond capacity and outlet improvements to be constructed in 2016 in accordance with the LRRWMO permit approval requirements for the Dedicated Networks expansion project.  Completing this work will also prevent delays or denials of future WMO permits for other business expansion projects within this business park.

Adopt Resolution #16-06-121 accepting bids and awarding a contract for construction for City Improvement Project #16-36, Business Park 95 Regional Stormwater Pond Improvements.