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Home My WebLink About8B - 2000 Street Reconstruction CITY COUNCIL AGENDA REPORT MEETING DATE: AGENDA #: PREPARED BY: REVIEWED BY: AGENDA ITEM: JUNE 19, 2000 8B BUD OSMUNDSON, DIRECTOR OF PUBLIC WORKS / CITY ENGINEER ift FRANK BOYLES, CITY MANAGER CONSIDER APPROVAL OF A RESOLUTION oo~ ACCEPTING THE BIDS AND AWARDING THE CONTRACT FOR THE 2000 STREET RECONSTRUCTION IMPROVEMENT PROJECT, (CITY PROJECTS #12-00 & 13-00) DISCUSSION: HISTORY City Project # 12-00 includes the proposed total street reconstruction improvements to Oak Ridge Circle, Flandrau Circle, Fulbright Circle, Indian Ridge Circle, Euclid Avenue, Maves Trail, Forsythe Road, Shannon Trail, Prior Circle and Shannon Circle. City Project #13-00 includes bituminous overlay improvements to Fairlawn Shores Trail from Fish Point Road to 150th Street, and Fish Point Road. These projects were approved in the 2000 Capital Improvements Program and on May 1, 2000, the City Council approved the plans and specifications, and authorized the Advertisement for Bids for both projects. The purpose of this agenda item is to accept the bids and award a contract to the lowest responsible bidder. CURRENT CIRCUMSTANCES Bids were received and opened on June 2, 2000. The bids have been checked and tabulated. The low bid was submitted by Northwest Asphalt in the amount of $1,082,790.15. The remaining bids are as itemized on the attached resolution. As staff outlined in the May 1, 2000 agenda report when the plans and specifications were approved, there have been some increases in the project costs, most notably because of petroleum price increases. Major increases are in the bituminous prices and in the hauling costs of other materials such as aggregate base and granular backfill material. There is an increase from last year's cl~A~Wsf9~~ Ave. S.L Prior Lake. Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 A'i EQUAL OPPORTUNITY E",lPLOYER TIT'" T1 bituminous prices of approximately $34,000. Another major increase in the project cost is due to the poor subgrade conditions which require the road to be subcut and backfilled with granular material. This item alone accounts for approximately an $80,000.00 increase from the original feasibility report calculations. The project is to be paid for from a number of funding sources including assessments, tax levy and the Trunk Reserve Fund. The street construction and storm sewer are to be paid from assessments and tax levy, and the Trunk Reserve Fund is to pay for all of the watermain and sanitary sewer repairs that are necessary in this project area. The tables below show the funding sources for the project: PROJECT COSTS AND FUNDING Total Bid Amount of City Project #12-00 & #13-00 $1,082,790 Subtotal Bid Amount For City Project #13-00 (Overlay) $(112,844.) Subtotal Bid Amount for City Project #12-00 (Reconstruction) $969,946 CITY PROJECT #12-00 RECONSTRUCTION Total Bid Amount for City Project #12-00 $969 Items Paid from Trunk Reserve Water Main On Fish Point $(16,128) Various Water Main Improvements $(78,743) Various Sanitary Sewer Improvements $(27,447) Subgrade Excavation $(66,693) Granular Borrow $(69,354) Total Construction Cost for City Project #12-00 $711,581 Plus 30% Administration, Finance, Engineering, & Contingency $213,474 Total Project Cost for City Project # I 2-00 $925,055 City Project #12-00 Total Assessment Amount (40%) $370,022 City Project #12-00 Total Levy Amount (60%) $555,033 City Project # 12-00 Proposed Assessment Per Unit $4,568 ($370,022/No. of Units = 81) City Project #12-00 Feasibility Report Estimated Assessment $4,198 G:\AGENDA00\2000BIDS.DOC CITY PROJECT #13-00 (OVERLAY) Total Bid Amount City Project #13-00 $112,844 Plus 30% Administration, Finance and Engineering $33,854 City Project #13-00 Total Project Cost $146,698 City Project #13-00 Total Assessment Amount (40%) $58,679 City Project #13-00 Total Levy Amount (60%) $88,019 City Project #13-00 Proposed Assessment Per Unit ($58,679/No. $917.00 of Units = 64) City Project # 13-00 Feasibility Report Estimated Assessment $846.00 FUNDING SOURCES ITEM CITY PROJECT CITY PROJECT TOTAL #12-00 # 13-00 Tax Levy $555,033 $88,019 $643,052 Assessments $370,022 $58,679 $428,701 Trunk Reserve $258,365 -0- $258,365 The assessments for city Project #12-00, the reconstruction area, are to be divided equally between the eighty-one homes or units in the area. Using the above breakdown in funding sources, the assessments for this area amount to $4,568 per home. This is an increase from the feasibility report assessment estimate of approximately $4,198 per unit, or 8.8%. The total assessed amount for city Project #13-00, the overlay area, amounts to $58,679 which when divided by the sixty-four units equals $917 per unit. This compares to the feasibility report assessment estimate of $846 per unit, an increase of 8.4%. ISSUES: There are two issues which need to be addressed. The first is the added project costs and the associated higher assessments than initially estimated. The increases are easily justified by higher oil prices and the necessary subgrade correction. Should the costs be passed onto the residents as recommended or should another method be utilized? The Assessment Committee recommends the funding and associated assessments be utilized as recommended in this report. G:\AGENDAO0\2000BIDS.DOC TIT" T1 The second issue is the lowest responsible bidder question. Northwest Asphalt, Inc. is performing well on City Project #99-11, (Candy Cove) currently under construction. They have had considerable experience with similar projects throughout the metro area. Staff recommends that they be awarded this project. CONCLUSIONS: Staff recommends that the City Council award the contract for the project to Northwest Asphalt, Inc. It is the recommendation of the staff that the assessment hearing for city Project # 12-00 & # 13-00 be held after the projects are substantially completed this fall proposed to be September 18, 2000. ALTERNATIVES: There are three alternatives for the City Council to consider: 1. Approve the resolution accepting the bids and awarding the contract for city Projects #12-00 & #13-00 to the lowest responsible bidder, Northwest Asphalt, Inc. for the bid amount of $1 ,082,790.15. 2. Deny this item for a specific reason and provide staff with direction. 3. Table this item until some date in the future. It should be noted that the bids are good for sixty days from the bid opening date of June 2, 2000. RECOMMENDED MOTION: A motion to adopt a resolution accepting the bids and awarding the contract for the 2000 Improvement Projects, City Project 12-00 & #13-00 to Northwest Asphalt, Inc. REVIEWED BY: G:\AGENDA00\2000BIDS.DOC ~~ RESOLUTION ~ ACCEPTING BIDS AND AWARDING CONTRACT FOR 2000 IMPROVEMENT PROJECT (CITY PROJECT #12-00 & 13-00) MOTION BY: SECOND BY: WHEREAS, pursuant to an advertisement for bids for the 2000 Street Reconstruction and Overlay Improvement Project, City Project #12-00 & 13-00 which includes reconstruction of streets, storm sewer, and appurtenant work; WHEREAS, the following bids were received, opened, and tabulated according to law and the following bids were received complying with the advertisement: BIDDER Northwest Asphalt, Inc. McNamara Contracting, Inc. Valley Paving, Inc. Ideal Paving, Inc. Bituminous Roadways, Inc. Hardrives, Inc. AMOUNT OF BID $1,082,790.15 $1,135,575.01 $1,139,072.33 $1,228,069.70 $1,253,783.24 $1,362,443.03 WHEREAS, the City Council has determined that Northwest Asphalt of Shakopee, Minnesota is the lowest responsible bidder. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, 1. The Mayor and City Manager are hereby authorized to enter into a contract with Northwest Asphalt of Shakopee, Minnesota in the name of the City of Prior Lake for the 2000 Improvement Project, City Project # 12-00 and # 13-00 in the amount of $1 ,082,790.15. 2. The City Manager is hereby authorized and directed to return to all bidders the deposits made with their bids once a contract has been signed. Passed and adopted this 19th day of June, 2000. YES NO Mader Mader Ericson Ericson Gundlach Gundlach Petersen Petersen Schenck Schenck {Seal} City Manager City of Prior Lake (Hi~A~WBG~~ Ave. S.L Prior Lake. Minnesota 55372-1714 / Ph (612) 447-4230 / Fax (612) 447-4245 .O\~ EQl.'AL OPP()RTL~ITY E~IPLOYER II Il