Adopt Resolution #18-058 Accepting Bids and Awarding Contract for River's Bend Streets Reconstruction, Improvement Project #17-02

Purpose:
The purpose of this case is to adopt Resolution #18-058 accepting bids and awarding a contract for construction for River’s Bend Street Reconstructions, Improvement Project #17-02.

Background:
Attached is a copy of the plans prepared by City staff for Improvement Project #17-02, River’s Bend Street Reconstructions.
 
This project proposes to reconstruct four street segments within the River’s Bend residential neighborhood including;

• 147th Lane from the west River’s Bend plat line to Waco Street,
• 148th Avenue from the west River’s Bend plat line to Xkimo Street,
• Xkimo Street between 147th Lane and 149th Avenue/Sunwood Drive, and
• Yakima Street between 148th Avenue and 149th Avenue/Sunwood Drive.

These street segments total approximately 2,774 feet in length as shown on the title sheet of the attached plans.
 
Proposed improvements include removing and replacing all damaged concrete curb and gutter sections, and reconstructing the existing bituminous pavement section using the Full Depth Reclamation (FDR) process.  The existing storm sewer system is in good condition and generally meets City design standards.  The only storm sewer work proposed is resetting the castings after replacing adjusting rings and re-grouting the insides of the catch basins.
 
Municipal sanitary sewer and water utilities exist under each street segment.  The attached plans do not propose improvements to these utilities, except for casting adjustments.  These utilities will be tested to verify they are in good operating condition and should not require repairs during the serviceable life of these proposed improvements, which is 60 years.  If tests reveal repairs are necessary, such repairs would be completed separately before any work on this project commences.
 
On February 12, 2018, Council accepted final plans and specifications and authorized advertisements for bids.  On March 15, 2018, nine (9) 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 found to be competitive and favorable, complied with the advertisement for bids, and two adjustments were required, those being to the bids of Omann Contracting Companies, Inc. and Northwest Asphalt which will not impact awarding a bid since their bids were not the lowest.  A summary of bids is below and in the attached resolution.
 

CONTRACTOR	TOTAL BID
North Valley, Inc.	$191,474.48
Omann Contracting Companies, Inc.	$199,270.62
Asphalt Surface Technologies, Corp.	$204,037.17
Park Construction Company	$204,713.69
GMH Asphalt, Corp.	$214,468.83
Hardrives, Inc.	$215,011.00
Douglas-Kerr Underground, LLC	$222,381.82
Midwest Asphalt Services	$223,635.60
Northwest Asphalt	$227,857.71
Engineer’s Estimate	$237,649.00

 
North Valley, Inc. of Nowthen, Minnesota, who provided a total bid of $191,474.48 for the construction of said improvements in accordance with the approved plans and specifications and advertisement for bids, is the lowest responsible bidder.  Their bid is $46,174.52, or 19.4% less than the engineer’s estimate of $237,649.00.
 
Following award of a contract, staff will immediately issue a Notice of Award to North Valley, Inc. 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, staff will issue a Notice to Proceed and construction may then begin.  At this time, it is anticipated that construction will begin in early June.
 
A preconstruction meeting will also be conducted before construction begins. Staff will then contact all abutting property owners to provide updates on the proposed construction schedule and operations based on the Contractors input at the preconstruction meeting.

Substantial completion will occur by August 31 to allow school buses unimpeded access to their normal routes before the next school year begins. 
 
The Assessment Hearing is scheduled for October 9, 2018.

Advertisements for bids were published in the Anoka Union Herald and in Finance & Commerce on February 16 and 23, 2018.

Observations:
The proposed improvements should have a serviceable life of 60 years, assuming that proactive maintenance operations are performed regularly during the life of the improvements.  However, since a majority of the existing concrete curb and gutter is not proposed to be replaced, this curb and gutter will be monitored over time and if it needs to be replaced before the improvements proposed with this project reach the end of their serviceable life, Staff will re-evaluate the pavement condition at that time.
 
Impacts to private irrigation systems may occur during construction. Staff will notify property owners in writing of the pending construction as far in advance as possible to allow them time to move their irrigation system components away from the construction activities.  All costs to relocate private irrigation system components are the responsibility of the property owners.
 
Alternatives:
Alternative #1 – Motion to adopt Resolution #18-058 accepting bids and awarding a contract for construction for River’s Bend Street Reconstructions, Improvement Project #17-02.

Alternative #2 – Motion to deny adoption of Resolution #18-058 at this time.

The low bid submitted by North Valley, Inc. of Nowthen, Minnesota, is $191,474.48.  After adding indirect costs for administrative (6%), engineering (15%), finance (1%), and legal (1%) costs, total project costs become $235,513.36.
 
For comparison, the Feasibility Report estimated project costs at $301,738.31 and the engineer’s estimate based on final plans and specifications was $292,308.27.
 
The improvements are proposed to be funded using a combination of Street Reconstruction and Overlay Program bond funds ($175,905.43), Stormwater Utility Funds ($972.78), and special assessments to benefitting properties ($58,635.15).
 
Forty-four (44) residential parcels use these streets to access their properties and will therefore receive special benefit from the improvements.  Staff proposes to assess up to 25-percent of eligible project costs equally across these 44 parcels using the “per lot” assessment method.  Based on the low bid, assessments would be $1,332.62 per parcel. Assessments for this project were preliminarily adopted at $1,714.42 per parcel.
 
Final assessments will be based on final construction costs and the findings of a special benefit consultation report. Unless Council objects, Staff plans to order a special benefit consultation report for this project following Council authorization to award a construction contract. Again, the purpose of this report is to help verify that proposed assessments will not exceed the benefit to assessed parcels.

Staff recommends Alternative #1.  This will allow the project to be constructed in 2018, and will allow for the use of special assessments to pay for up to 25% of eligible project costs per the applicable provisions of Minnesota Statute Chapter 429, Chapter 8 of the City Charter, and the City’s Special Assessments Policy.

Motion to adopt Resolution #18-058 accepting bids and awarding a contract for construction for River’s Bend Street Reconstructions, Improvement Project #17-02.