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Home My WebLink About9A Sunset Avenue Bids and Contract O � PKlp� H � U tr1 4646 Dakota Street SE `�iv�so'��` Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: AUGUST 12, 2013 AGENDA #: 9A PREPARED BY: SENG THONGVANH, PROJECT ENGINEER PRESENTER: SENG THONGVANH AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION ACCEPTING BIDS AND AWARDING THE CITY'S STANDARDIZED CONSTRUCTION CONTRACT FOR THE SUNSET AVENUE IMPROVEMENT PROJECT #13-011 DISCUSSION: Introduction The purpose of this agenda item is to accept bids and award a construction contract for the Sunset Avenue Improvements Project. Histo The City uses the Five Year Capital Improvement Program to plan its infrastructure improvements and the financing for capital improvements. The Sunset Avenue and County Road 12 projects propose to extend - utility connections to properties on Sunset Avenue and on County Road � 12 west of Stemmer Ridge Road. Many of these properties are experiencing failing septic systems and desire City services. In July of 2012, this area was annexed into the City of Prior Lake as part of the Orderly Annexation agreement known as the 6.2 area. At its August 27, 2012 meeting the City Council adopted Resolution 12- 124 authorizing staff to prepare a Feasibility Report for the 2013 Sunset Avenue Improvements Project as outlined in the CIP and required for the I Minnesota Statutes Chapter 429 process. The Minnesota Statutes , Chapter 429 process is required because the City Council intends to specially assess for the improvements. The Sunset Avenue neighborhood is considered in the report and includes improvements to Sunrise View, Sunrise View 1St Addition, and Part of Gov't lots 1& 2 S8, T114, R22. A portion of these properties were originally platted and developed in 1927. The proposed improvements include the extension of sanitary sewer and watermain, street reconstruction, storm sewer, storm water quality, concrete curb and gutter, and appurtenant work. The recommendation of the Feasibility Report was to proceed with the project. On October 8, 2012, Council adopted Resolution 12-167 accepting the Feasibility Report and calling for a Public Hearing on November 13, 2012 for the 2013 Improvement Project. At the November 13, 2012 Public Hearing, a number of people spoke regarding the project. In addition to the Public Hearing, the City has held three informational meetings to discuss the project. The last informational meeting was held on April 17, 2003 after bids were received for the project. On February 25, 1013 the City Council approved the project plans and specifications and authorized the advertisement for bids for the Sunset Avenue Improvements Project. Current Circumstances The City received three bids on March 27, 2013. The bids have been checked and tabulated. Chard Tiling & Excavating from Belle Plaine, Minnesota submitted the low bid in the amount of $943,405.22. The lowest bid was 17% or $196,777 below the engineer's estimate of $1,140,182. The bid summary is provided as follows: CQMPP+NY , 81:� AM4UNT CHARD TILING $943,405.22 NORTHWEST ASPHALT $955,622.50 RYAN CONTRACTING $1,199,477.55 ISSUES: Chard Tiling recently completed the Arcadia/Main Avenue project as well as numerous private development projects within the City. Chard is currently constructing the Welcome Avenue project and work will soon begin on the Ridgemont/Main Avenue project. Although Chard has a number of projects to complete this fall, City staff feels they have the experience and equipment to construct the Sunset - Avenue project. ' FINANCIAL The proposed amount to be assessed against the benefiting properties is IMPACT: $798,786.84. There are 26 benefiting units in the project area that are being assessed at 40% of the street and storm sewer improvements. Another 10 units that make up the proposed future lots will be assessed 100% of the street and storm sewer improvements. Based on the foregoing, the proposed street and storm sewer assessment is $9,138.34 per unit for the existing properties and $22,845.86 for proposed future lots. This compares with the original assessment estimate of $10,000 per unit and $25,200 per unit, respectively. There are a total of 36 utility connections. After the trunk costs and grant �' proceeds were subtracted, the final assessment amount for water was determined to be $4,865.58 and sanitary sewer to be $4,522.79. Initial estimates calculated the water assessment to be $5,700 and sanitary sewer to be $3,100. The Sunset Avenue Improvements Project is proposed to be financed by Special Assessments, Tax Levy, Sewer Trunk Fund, and a Clean Water Grant. Funding sources and amounts are as shown below: Assessments $798,786.84 Tax Le $361,645.40 Clean Water Grant $110,919.39 Trunk Fund $1,962.00 Pro'ect Total Cost* $1,273,313.63 *Includes indirect costs 2 The Council approved the issuance of general obligation street improvement bonds on July 22, 2013 and initial transfers from the Water & Sewer and Water Quality Funds for this project. A final project reconciliation will be prepared when the project is completed. The anticipated completion date is Fall 2013. ALTERNATIVES: The alternatives are as follows: 1. Approve a resolution accepting bids and awarding the City's Standardized Construction Contract to Chard Tiling & Excavating for the Sunset Avenue Improvements Project #13-011. 2. Deny this item for a specific reason and provide Staff with direction. 3. Defer this item until a future date. RECOMMENDED Alternative No. 1. MOTION: 3 O � PRIp !� � U tri 4646 Dakota Street SE 'Mr�so'��` Prior Lake, MN 55372 RESOLUTION 13-xxx A RESOLUTION ACCEPTING BIDS AND AWARDING THE CITY'S STANDARDIZED CONSTRUCTION CONTRACT FOR THE SUNSET AVENUE IMPROVEMENTS PROJECT (CITY PROJECT #13-011) Motion By: Second By: WHEREAS, Pursuant to an advertisement for bids for the Sunset Avenue Improvements Project (City Project #13-011) which includes lift station, sanitary sewer, water main, storm sewer, aggregate base, concrete curb and gutter, bituminous pavement, turf restoration and appurtenant work; and WHEREAS, Bids were received, opened, and tabulated according to law; and WHEREAS, The following bids were received complying with the advertisement: COMPANY � B�E? AMC)UI�T CHARD TILING $943,405.22 � NORTHWEST ASPHALT � $955,622.50 RYAN CONTRACTI NG $1,199,477.55 ; and WHEREAS, Chard Tiling 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 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 in the name of the City of Prior Lake for the Sunset Avenue Improvements Project (Project #13-011) in the amount of $945,405,22, 4. The City Manager is hereby authorized and directed to return to all bidders the deposits that accompanied their respective bids. 5. The City Council authorizes funding for this project as shown in the following table: Assessments $798,786.84 Tax Le $361,645.40 Clean Water Grant $110,919.39 Trunk Fund $1,962.00 Pro'ect Total Cost $1,273,313.63 6. Construction costs will be recorded in the Construction Fund (#501-48374-501) for the Sunset Avenue Improvements Project. 7. The City Council authorizes the intent to issue General Obligation Bonds for this project. 8. Proceeds from the bond sale will be deposited in the Construction Fund. PASSED AND ADOPTED THIS 12th DAY OF AUGUST 2013. YES NO Hedbe Hedbe Keene Keene McGuire McGuire Morton Morton Souku Souku Frank Boyles, City Manager I I 2