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HomeMy WebLinkAbout8A - Maple, Mushtown, Panama Awarding Contract O� PRION ti U 4646 Dakota Street SE Nxsso��' Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: FEBRUARY 9, 2015 AGENDA#: 8A 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 MAPLE LANE, MUSHTOWN ROAD, PANAMA AVENUE IMPROVEMENT PROJECT (TRN14-000001) DISCUSSION: Introduction The purpose of this agenda item is to accept bids and award a construction contract for the Maple Lane, Mushtown Road, Panama Avenue Improvement Project as directed by the city council. History At its September 9, 2013 meeting the City Council adopted Resolution 13- 126 authorizing staff to prepare a Feasibility Report for Maple Lane, Mushtown Road, Panama Avenue Improvement Project as outlined in the CIP and required for the 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 Maple Lane / Mushtown Road / Panama Avenue neighborhood is considered in the report and includes improvements to Maple Acres, O'Rourke Addition, Parts of S 11, T 114, R 22 and Parts of S 2, T 114, R 22. These properties were platted and developed in the 1950's and 1960's. A map of the project area (Figure 1) is included in the Feasibility Report. The proposed improvements include street reconstruction, sewer and water construction, storm sewer, storm water quality, concrete curb and gutter, and appurtenant work. The Feasibility Report also includes total estimated costs, preliminary assessment amounts, and a project financing summary. Also included in the report are design criteria, estimates and information on watermain, sanitary sewer, storm sewer, and streets. Details on each can be found in the Feasibility Report which is available upon request. On November 12, 2013, the City Council accepted the feasibility report and scheduled the public hearing. The public hearing was held on December 9, 2013. Staff presented the original project plus three (3) options prior to the public hearing. A dozen or so residents spoke at the public hearing in opposition to the project. While it was recognized that Mushtown Road is in poor condition, the cost for the project as a whole was the major point of objection. The City Council tabled their discussion after closing the public hearing. Phone 952.447.9800 / Fax 952.447.4245/www.cityofpriorlake.com The City Council communicated support for Option 3, which eliminated sanitary sewer and watermain on Maple Lane and provided services through a proposed easement between two properties on Maple Lane. It was estimated that the cost savings would be approximately $10,000 for this option. The City Council also asked that the following additional information be brought back on January 26, 2014. 1. Representative Appraisals 2. Options to reduce project assessment 3. Septic System Credit Information 4. Information on age and condition of the existing septic systems on the project 5. Additional traffic information for Mushtown Road Each of the items were reviewed and presented at the January 26th meeting. An additional Public Hearing was held on March 10, 2014. Staff presented the proposed improvements, funding mechanisms, and estimated assessment amounts based on the various funding contributions. There were five residents that spoke at the public hearing. Each of the comments or concerns were addressed at the public hearing. At the Public Hearing the City Council Ordered the project. In accordance with MN Statutes 429, bids must be accepted within one year of the date the project was ordered. In addition to the Public Hearings, the City has held two informational meetings to discuss the project. The last informational meeting was an open house held on May 20, 2014 and offered residents the opportunity to comment on the proposed plans. At the open house persons from 21 homes were represented. City Staff explained the proposed design and passed out information regarding the various programs available. Another informational meeting is proposed to be held to share bid results and communicate timelines for the project. On October 13, 2014 the City Council approved the project plans and specifications and authorized the advertisement for bids for the Maple Lane, Mushtown Road, Panama Avenue Improvement Project. Current Circumstances The City received a total of six bids on January 14, 2015. The bids have been checked and tabulated. Chard Tiling from Belle Plaine, Minnesota submitted the low bid in the amount of $1,497,936.98. The lowest bid was $31,081.66 above the engineer's estimate of $1,466,855.32. The bid summary is provided as follows: COMPANY, BIC}AMOUNT ., CHARD TILING& EXCAVATING $1,497,936.98 RYAN CONTRACTING $1,545,048.80 EURECKA CONSTRUCTION $1,633,429.87 NORTHWEST ASPHALT $1,903,800.26 NORTHDALE CONSTRUCTION $1,959,898.21 MEYER CONTRACTING $2,127,864.67 2 While the low bid amount was above the engineer's estimate it was still within 2%. Considering the high number of bids, the low bid appears to be the appropriate cost for this project. The engineer's estimate utilized pricing from last year's construction season. With the bids received, it appears that pipe and material costs have increased. ISSUES: Construction Contract Chard Tiling recently completed a number of projects within Prior Lake. The projects include the Arcadia /Main Avenue project, Sunset Avenue project, Welcome Avenue project, and Ridgemont/Main Avenue project. Although Chard Tiling had some issues with the construction of the lift station for Sunset Avenue, the overall project was completed in a satisfactory manner. The amendment with respect to liquidated damages has been incorporated into the construction contract document as directed by the council. Septic System Credits As part of the Orderly Annexation Agreement (OAA), septic system credits are available for those systems that meet the age requirements. There are 8 properties that currently meet the age requirement per Scott County records. In order to receive the credit, the property owner must provide certification prior to or at the Assessment Hearing. The credit is calculated based on the age of the septic system at the time of the Assessment Hearing. At the January 26, 2015 City Council meeting, the Council discussed waiting to hold the Assessment Hearing after substantial completion of the project. Assuming that the Assessment Hearing would be held in October 2015, 6 of 8 properties would lose another year of credits based on their date of installation. Each year of credit is worth $750 for a compliant system and $375 for a non-compliant system. In order to provide the optimal credit amount, the Council may choose to "freeze" the septic system credit calculations on the date of this City Council meeting. Of the 8 properties, 2 are currently eligible for septic system credits above the amount of the proposed sanitary sewer assessment. Per the OAA, the septic system credit is the amount the special assessment will be reduced. The maximum amount of the septic system credits for at least 2 properties will need to be reduced to the amount of the assessment for sanitary sewer. Since the assessment amounts have not been set and will not be set until the Assessment Hearing, the credit for any property that exceeds the sanitary sewer assessment amount will need to be adjusted when the Assessment Hearing takes place. Assessment of Hookup Charges Aside from the assessments, each property owner will also incur additional costs associated with hookup charges and private property work. Based on the 2015 fee schedule for a typical 5/8" water meter, hookup charges are calculated at $5,746. This permit fee is normally due at the time connection permits are pulled. In addition, private work to hook up the house to the service stubs will be at the property owners' expense. The cost of the private work will be dependent on individual site conditions and how existing pipes are laid out for each house. The Assessment Review Committee has discussed that these one-time charges could be a large 3 burden at one time for property owners. An option to assist the homeowners would be to allow the hookup charges be assessed to the property owners for a 5 year term. The interest rate charged would be the same as the rates charged for street and utilities assessment. In order to take advantage of this option, the property must consent to waive their rights for appeal of the all special assessments for this project before or at the assessment hearing. With this option, the property owner still must secure a permit from the City, but their fees for the permit would have already been charged per the assessment. If the permit fees change in 2016 or if the property owner requests a larger meter, the property owner would pay the difference at the time they secured a permit from the City. Conclusion City staff recommends that the construction contract for the Maple Lane, Mushtown Road, Panama Avenue Improvement Project be awarded to Chard Tiling and Excavating. City staff recommends that the septic system credit calculation be determined from the City Council meeting date of February 9, 2015, set the date for certification of septic system submittal to June 1, 2015 and reduce septic system credits that are above the sanitary sewer assessment to the sanitary sewer assessment amount at the Assessment Hearing. Since the City will need to know how much bonding is needed, the property owners that want to use the option to roll the hookup charges into their assessment will need to communicate their desire to do so by June 1, 2015. The written consent to waive their right for appeal of the special assessment on the city provided form will need to be received by this date. Below are the milestones for the project: Award the project Feb. 9, 2015 Informational Meeting March, 2015 Construction Begins April, 2015 Septic System Certifications Due June 1, 2015 Hookup Charge and Consents to Waive Right to Appeal June 1, 2015 City Council Set Amount to be Assessed Sept, 2015 Assessment Hearing Oct, 2015 FINANCIAL At the January 26, 2015 City Council meeting, extensive discussion took IMPACT: place in regards to the funding amounts and funding sources for the project as well as the proposed assessment amounts. Since the project is not yet constructed and ultimate costs not yet realized, it was determined that the Assessment Hearing would be held at a later date. The actually amount of the Clean Water Grant would also be known prior to the Assessment Hearing. The information below in regards to funding amounts, funding sources, and assessment amounts were presented to the Council on January 26, 2015. The assessment calculation has been computed in a manner consistent with the latest calculation methods and the Assessment Policy. The property owners are proposed to be assessed 100% for all costs associated with the proposed sanitary sewer and watermain improvements after subtracting trunk amounts and the grant proceeds. Existing properties on Maple Lane and Mushtown Road will be assessed 40% of the street and 4 storm sewer improvement costs for this project after street oversizing, capital park, and water quality components are subtracted. The remaining 60% of the street and storm sewer costs will be paid through the tax levy. Any septic system credits for this project will be paid through the Sewer Fund. The Maple Lane, Mushtown Road, and Panama Avenue Street Improvement Project was originally proposed to be financed by Special Assessments, tax levy, Street Oversize Fund and Water Quality Fund. The following table reflects the original funding sources, interim funding sources, and recommended funding sources per the Assessment Review Committee meeting held on January 16, 2015. It is also proposed that the trail construction, which is part of the Trail Gaps Analysis, be funded through the Capital Park Fund exclusively. Funding Source Original Interim As Bid** Estimate Estimate Tax Lev $437,300 $388,384 $441,570 Assessments $1,217,294 $906,388 $804,190 Street Oversize Fund $56,152 $131,186 $122,537 Water Quality Fund $30,000 $42,588 $61,918 Trunk Water Fund $0 $131,000 $131,000 Trunk Sewer Fund $0 $131,000 $65,500 Capital Park Fund $0 $0 $62,356 Clean Water Grant $0 $0 $249,930 Project Total Cost* $1,740,746 1 $1,730,546 $1,939,000 Utilities Assessment Unit $24,362 $16,906 $13,416 Street & Utilities $35,575 $26,865 $24,738 Assessment (Unit) * Includes project support costs **As recommended by the Assessment Review Committee at the January 16, 2015 meeting The funding table is being presented as recommended by the Assessment Review Committee. The amounts would need to be revised once construction has been substantial complete, actual grant amount approved, and upon Council directive. ALTERNATIVES: 1) Approve a resolution accepting bids and awarding the City's Standardized Construction Contract to Chard Tiling & Excavating for the Maple Lane, Mushtown Road, Panama Avenue Improvement Project #TRN 14-000001. 2) Deny this item for a specific reason and provide Staff with direction. 3) Defer this item until a future date. RECOMMENDED Alternative#1 MOTION: 5 O� F r E~ U ny 4646 Dakota Street SE NivESO�P Prior Lake,MN 55372 RESOLUTION 15-xxx A RESOLUTION ACCEPTING BIDS AND AWARDING THE CITY'S STANDARDIZED CONSTRUCTION CONTRACT FOR THE MAPLE LANE, MUSHTOWN ROAD, PANAMA AVENUE IMPROVEMENT PROJECT(TRN14-000001) Motion By: Second By: WHEREAS, Pursuant to an advertisement for bids for the Maple Lane, Mushtown Road, Panama Avenue Improvement Project (City Project#TRN14-000001) which includes 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: CQMPANY SIDAM©UNC,. v CHARD TILING & EXCAVATING $1,497,936.98 RYAN CONTRACTING $1,545,048.80 EURECKA CONSTRUCTION $1,633,429.87 NORTHWEST ASPHALT $1,903,800.26 NORTHDALE CONSTRUCTION $1,959,898.21 MEYER CONTRACTING $2,127,864.67 and; WHEREAS, Chard Tiling & Excavating 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 & Excavating 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 & Excavating in the name of the City of Prior Lake for the Maple Lane, Mushtown Road, Panama Avenue Improvement Project(Project#TRN14-000001) in the amount of$1,497,936.98. 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: Funding Source Amount Tax Lev $441,570 Assessments $804,190 Street Oversize Fund $122,537 Water Quality Fund $61,918 Trunk Sewer Fund $65,600 Trunk Water Fund $131,000 Capital Park Fund $62,356 Clean Water Grant $249,930 Project Total Cost $1,939,000 6. Construction costs will be recorded in the Construction Fund (#501-43500.00-55050.00 TRN14-000001) for the Maple Lane, Mushtown Road, Panama Avenue Improvement Project. 7. The City Council authorizes the intent to issue General Obligation Bonds for this project. 8. The City Council authorizes an inter-fund loan from the Water Fund if necessary to provide interim funding until additional bonds are issued in 2015. 9. Proceeds from the bond sale will be deposited in the Construction Fund. PASSED AND ADOPTED THIS 9th DAY OF FEBRUARY 2015. VOTE Hedberg Keeney McGuire Morton Thompson Aye ❑ ❑ ❑ ❑ ❑ Nay ❑ ❑ ❑ ❑ ❑ Absent ❑ ❑ ❑ ❑ ❑ Abstain ❑ ❑ ❑ ❑ ❑ Frank Boyles, City Manager 2