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Home My WebLink About5D - Street Construction Contract for Jeffers Pond ~o~ ,~ ,..~\ ~ ;.. \~, ~ 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 CITY COUNCIL AGENDA REPORT MEETING DATE: SEPTEMBER 8,2009 AGENDA #: 5D PREPARED BY: LARRY POPPLER, ASSISTANT CITY ENGINEER AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION ACCEPTING BIDS AND AWARDING THE CITY'S STANDARDIZED CONSTRUCTION CONTRACT FOR STREET CONSTRUCTION FOR JEFFERS POND AND JEFFERS POND THIRD ADDITION DISCUSSION: Introduction This agenda item requests the City Council to accept bids and award a contract for the Jeffers Pond and Jeffers Pond Third Projects. Historv On June 6th, 2005, the City Council approved the Development Contact for Jeffers Pond and on March 5, 2007, the City Council approved the Development Contract for Jeffers Pond Third Addition. Construction of Jeffers Pond was completed on July 25, 2007. Construction of Jeffers Pond Third Addition, with the exception of final paving (wear course) and individual lot landscaping, was completed in the summer of 2007. Since 2007, the City has been waiting for the Developer to complete the remaining improvements on the two projects. The City has tried to coordinate this work with the Developer. Some attempts were made last year by the Developer to finish the work, however not all the work was completed. On March 10, 2009, the City notified Wensmann Realty Inc. (Developer) that if the remaining work on these developments was not completed by June 15th, 2009, the City would utilize mechanisms outlined in the Development Contract to complete the remaining improvements. The June 15th deadline passed with no work completed on these projects. On June 18, the City mailed notice to Wensmann Realty that they were in Default of the Development Contract for failing to complete the remaining improvements according to the terms, conditions and limitations of the Development Contracts for Jeffers Pond and Jeffers Pond Third. In this case, the Developer failed to complete the improvements according to the "Time of Performance" provisions of the Development Contracts. On July 15, the City drew on the Developer's Letters of Credit for these two developments. Since the City's draw on July 15, 2009, a City Consultant (SRF) has completed plans and specifications for the remaining improvements. These plans and specifications were used by contractors to provide a bid for the work. www.cityofpriorlake.com Phone 952.447.9800 / Fax 952.447.4245 R:\Council\2009 Agenda Reports\09 08 09\Jeffers Pond Award Agenda.doc Current Circumstances The City received six bids on August 27,2009. The bids have been checked and tabulated. Chard Tiling and Excavating from Belle Plaine, Minnesota submitted the low bid in the amount of $132,484.50. The lowest bid was 10% or $12,694.00 below the engineer's estimate of $145,178.50. The bid summary is provided as follows: COMPANY; I CHARD TILING AND EXCAVATING I MCNAMARA CONTRACTING I QUIRING EXCAVATING I SM HENTGES I VALLEY PAVING I NORTHWEST ASPHALT I I BID AMOUNT l $132,484.50 I $140,656.65 $143,941.15 $162,123.86 I $172,501.00 I $182,626.00 I I ISSUES: Chard Tiling and Excavating was founded in 1976 and runs their business out Belle Plaine. The City has worked with Chard on several projects throughout the years including the County Road 12 / Trunk Highway 13 project. Chard has also been the Contractor for several private subdivision developments in Prior Lake. As the lowest responsible bidder, City Staff recommends that the City Council award the contract to Chard Tiling and Excavating. FINANCIAL IMPACT: The funding for this work will come from the Letter of Credit dollars collected from Mainstreet Bank on July 15, 2009. The draw amount for both projects amounted to $171,800. The remaining dollars will be used to complete a seal coat over the Jeffers Pond Development. Seal coating can only occur in the months of June, July, and August, so the seal coating will occur next summer. Any dollars remaining after all the work is complete will be returned to Mainstreet Bank. The consultant fees for the coordination of this work are being funded by the escrow provided by the Developer at the time of approval of the Development Contract. ALTERNATIVES: The alternatives are as follows: 1. Approve a resolution accepting bids and awarding the City's Standardized Construction Contract for street construction to Chard Tiling and Excavating for the Jeffers Pond and Jeffers Pond Third Addition Projects. 2. Deny this item for a specific reason and provide Staff with direction. 3. Defer this item until a specific date in the future. RECOMMENDED Alternative #1 MOTION: Rep~.,~ F""nk Boyli;,( ~an~ R:\Council\2009 Agenda Reports\09 08 09\Jeffers Pond Award Agenda.doc 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 RESOLUTION 09-xx A RESOLUTION ACCEPTING BIDS AND AWARDING THE CITY'S STANDARDIZED CONSTRUCTION CONTRACT FOR STREET AND UTILITY CONSTRUCTION FOR THE JEFFERS POND AND JEFFERS POND THIRD ADDITION PROJECTS Motion By: Second By: WHEREAS Bids were solicited for Street and Utility Construction for Jeffers Pond and Jeffers Pond Third Addition projects which include bituminous pavement, landscaping, and appurtenant work; and WHEREAS, Six bids were received, opened, and tabulated; and WHEREAS, The following bids were received: COMPANY I CHARD TILING AND EXCAVATING MCNAMARA CONTRACTING QUIRING EXCAVATING I SM HENTGES I VALLEY PAVING I NORTHWEST ASPHALT I BID AMOUNT $132,484.50 $140,656.65 $143,941.15 $162,123.86 $172,501.00 $182,626.00 ; and WHEREAS, The proposed City funding source for these projects comes from the Developer's Letter of Credit dollars collected on July 15, 2009; and WHEREAS, Chard Tiling and Excavating of Belle Plaine, Minnesota is the lowest responsible bidder. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. Chard Tiling and Excavating of Belle Plaine, Minnesota is the lowest responsible bidder. 3. The Mayor and City Manager are hereby authorized to enter into the City's Standard Contract with Chard Tiling and Excavating of Belle Plaine, Minnesota in the name of the City of Prior Lake for the Jeffers Pond and Jeffers Pond Third Addition Projects in the amount of $132,484.50. 4. The City Manager is hereby authorized and directed to return to all bidders the deposits that accompanied their respective bids. R:\Council\2009 Agenda Reports\09 08 09\Jeffers Pond ~l!1W&B9fblm~~~tJAA Resolution.doc Phone 952.447.9800 / Fax 952.447.4245 5. Construction costs will be recorded in the Developer's Agreement Special Revenue Fund (#260- 60051-509) and (#260-60119-505) for the Jeffers Pond and Jeffers Pond Third Addition Improvements PASSED AND ADOPTED THIS 8th DAY OF SEPTEMBER 2009. YES NO I Haugen I Erickson I Hedberg LeMair Millar Hau!:len Erickson Hedberg LeMair Millar Frank Boyles, City Manager R:\Council\2009 Agenda Reports\09 08 09\Jeffers Pond and Jeffers Pond Third award Resolution.doc