Adopt Resolution #17-10-254 Accepting Bids and Awarding Contract for Improvement Project #17-10, Puma Street Utility Extensions

Purpose:
The purpose of this case is to consider adopting Resolution #17-10-254 accepting bids and awarding a construction contract for Improvement Project #17-10, Puma Street Utility Extensions.

Background:
The proposed Puma Street utility extensions are needed to support the current Riverstone residential development, as well as future development east of Puma Street and a smaller area west of the Riverstone development.  This area of the City is within the MUSA requiring service by City sewer and water.  Attached is a copy of the title sheet of the plans showing the general project location and scope of work.

The City recently extended trunk watermain and sanitary sewer along Bunker Lake Boulevard, east of Puma Street, to serve the Riverstone development, as well as a portion of PSD’s Bunker Lake Industrial Park.  The trunk watermain under Bunker Lake Boulevard is 16-inch ductile iron pipe (DIP), and the trunk sanitary sewer is 18-inch polyvinyl chloride (PVC) pipe.

Puma Street was constructed with a temporary pavement section consisting of roughly 2 inches of bituminous pavement over a few inches of aggregate base. Permanent street and trunk utility improvements were intended to be constructed along Puma Street as adjacent properties developed.  The temporary street section is proposed to be improved in the spring/summer of 2018 after trunk utilities and services are installed this fall.

A portion of the south end of the Riverstone development will be served by the utilities previously extended along Bunker Lake Boulevard.  Phase 1A in the attached Future Business Park Proposal addresses this.  Public utilities must be extended north along Puma Street to serve the remaining homes in the Riverstone development.  In addition, the Puma Street utility extensions will serve properties east of Puma Street, as well as the Northfork property just west of the Riverstone development and south of Alpine Drive.  Phase 1B in the attached Future Business Park Proposal addresses this work.

An Assessment Agreement was recently executed between the City and two adjacent property owners. This will allow the City to recover 40% of the project costs to extend utilities along Puma Street.  The remaining 60% of the costs will be paid from City sewer and water utility enterprise funds.  City costs will be recovered over time through trunk utility and connection fees.

Capstone Homes is currently constructing the Riverstone development.  If the City Council accepts bids and awards a contract this evening, the Puma Street trunk utility extensions should be operational by the end of December.  This schedule meets the developers desired utility service schedule allowing Certificates of Occupancy to be issued for homes in the central area of the Riverstone development by January of 2018.  It should be noted that the permanent lift station pumps will likely not be operational until next spring, which required the project to be bid with a temporary pumping system that will need to be removed and replaced with the permanent system when the permanent system is available to be installed.
 

Bids were advertised twice in the Anoka Union Herald and Finance and Commerce, once on Friday, September 15th, and again on Friday, September 22nd.

Observations:
Final plans and specifications are attached to this case.  One addendum to the plans and specifications was issued during the bid process.  A copy of the addendum is attached.
 
Puma Street is proposed to be restored using temporary surfacing composed of 8” of reclaimed pavement material.  This temporary surfacing will be in place during the winter, but due to Puma Street’s low traffic volumes, and since Puma Street is proposed to be reconstructed next spring/summer, this low-cost, temporary repair is proposed by Staff.
 
Plans and specifications for future permanent street improvements for both Puma Street and Bunker Lake Boulevard will need to be prepared and bid this winter to allow construction to occur next spring/summer.  A separate case will be presented to Council in the near future requesting Council authorization to prepare plan and specifications for these proposed permanent street improvements.
 
Alternatives:
Alternative #1 – Motion to adopt Resolution #17-10-254 accepting bids and awarding a construction contract for Improvement Project #17-10, Puma Street Utility Extensions, to Douglas-Kerr Underground, LLC of Mora, Minnesota, in the amount of $727,667.07

Alternative #2 – Motion denying adoption of Resolution #17-10-254 at this time.

On September 12, 2017, Council accepted plans and specifications and authorized advertisements for bids.  On October 6, 2017, a total of seventeen (17) sealed bids were received and were publicly opened and read aloud.  The bids were checked for errors and omissions, and were tabulated.  All bids were competitive and favorable, complied with the advertisement for bids, and no adjustments were required for the low bid.  A summary of the bids is included below and in the attached resolution.

CONTRACTOR TOTAL BID
Douglas-Kerr Underground, L.L.C. - $727,667.07
RL Larson Excavating Inc  - $745,466.06
SR Weidema Contractors  - $764,729.60
Northdale Construction  - $767,409.57
SM Hentges & Sons  - $782,170.50
CS McCrossan Construction - $785,538.38*
Geislinger & Sons  - $790,684.50
LaTour Construction, Inc.  - $796,706.50
Park Construction Company  - $806,411.20
C&L Excavating  - $807,830.50
Minger Construction  - $808,648.90
Kuechle Underground Inc.  - $810,378.93
Veit & Company  - $818,549.40
Ryan Contracting Co.  - $882,355.00
Metro Utilities  - $884,132.00*
Widmer Construction  - $940,062.35*
Meyer Construction  - $1,063,410.85
* Pricing reflects a corrected summation of the unit prices bid multiplied by estimated quantities 
   shown on Bid Form.

The bid of Douglas-Kerr Underground, LLC of Mora, Minnesota, in the amount of $727,667.07 for the total bid for construction of said improvements in accordance with the approved plans and specifications and advertisement for bids, is the lowest responsible bidder.  Their bid is $222,332.93, or 23.4%, less than the engineer’s estimate of $950,000.

Following award of contract, a Notice of Award will be issued to the awarded Contractor to initiate execution of a contract and issuance of the required bonds and insurance.  The City Attorney will verify that the contract, bonds, and insurance are in proper legal form prior to execution of the contract. Once a contract is executed, a Notice to Proceed will be issued and construction may then begin.  At this time it is anticipated that construction will begin in mid to late October.

A preconstruction meeting will be held before construction begins. Staff will contact the adjacent property owner to provide an update on the proposed construction schedule and operations based on the Contractors input at the preconstruction meeting.

Final completion is anticipated to occur by June 1, 2018. 

The low bid submitted by Douglas-Kerr Underground, LLC, is $727,667.07.  After adding indirect costs for administrative (6%), engineering (15%), finance (1%), and legal (1%) costs, total project costs become $895,030.50. 

The improvements are proposed to be funded using a combination of bonds, special assessments to benefiting properties, and stormwater utility funds.

In March 2017, Bolton Menk updated the Future Business Park report to include estimated costs for extending trunk utilities along Puma Street, called Phase 1B improvements.  A copy of the updated report is attached.  The report identifies estimated costs to extend trunk utilities along Puma Street with Phase 1B including trunk watermain estimated costs of $182,000, and trunk sanitary sewer estimated costs of $545,000.  This work totals $727,000 and includes 30% contingency and indirect costs.  This did not include costs to restore the surface of Puma Street temporarily over the winter.  Staff estimated these costs at $50,000. 

Bolton & Menk proposed engineering fees to prepare plans and specifications at $104,780.  The final invoice for this work has not yet been received.  Staff also proposes to utilize Bolton & Menk to administer the project and stake construction.  This work is estimated to cost $10,360 for construction staking and $9,776 for administration and lift station related inspections.

City staff will inspect construction and assist with project administration. City project costs not covered by other parties through the Assessment Agreement are proposed to be paid through City sewer and water utility funds.

NTI will perform construction materials testing.  This work is estimated to cost $5,000.

Connexus needs to provide power to the lift station which is not included in the bids.  This work is estimated to cost $20,000 to $30,000, depending on chosen route.

Staff recommends alternative #1 to support current and future development opportunities in this area of the City.  Staff does not support alternative #2.
 
 

Motion to adopt Resolution #17-10-254 accepting bids and awarding a construction contract for Improvement Project #17-10, Puma Street Utility Extensions, to Douglas-Kerr Underground, LLC of Mora, Minnesota, in the amount of $727,667.07.