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Home My WebLink About8B - Stemmer Ridge Professional Services Agreement r~ u 4646 Dakota Street SE Prior Lake, N N 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: FEBRUARY 23, 2015 AGENDA#: 8B PREPARED BY: LARRY POPPLER, CITY ENGINEER/ INSPECTIONS DIRECTOR PRESENTER: LARRY POPPLER AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION ACCEPTING PROPOSALS, ENTERING INTO THE CITY'S STANDARDIZED PROFESSIONAL SERVICES AGREEMENT FOR ENGINEERING SERVICES FOR THE STEMMER RIDGE ROAD EXTENSION PROJECT (TRN14-000004) AND AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE SAID AGREEMENT DISCUSSION: Introduction At the December 22, 2014 meeting the city council voted to proceed with the Stemmer Ridge Road Extension Project. The purpose of this agenda item is to accept the proposals for design services for the Stemmer Ridge Road Extension. History As part of the 2013 County State Aid Highway 12 Project, the City has installed the structural components of the lift station that will serve the future annexation areas. The project also installed trunk forcemain that will connect to existing forcemain already installed with the previous phase of County State Aid Highway 12 construction. This forcemain currently extends north to the end of existing Stemmer Ridge Road. In order to serve the future annexation areas, Stemmer Ridge Road must extend from where it currently terminates north to County State Aid Highway 82. Trunk utilities were installed as part of the County State Aid Highway 82 in 2007 in anticipation of future need. The Stemmer Ridge Road project would be the final link for utilities to serve the approximately 2400 acre annexation area. Recognizing this fact, the City Council placed the Stemmer Ridge Road project in the Capital Improvement Program for 2015 construction. At its October 7, 2013 meeting the City Council adopted Resolution #13- 146 authorizing the Mayor and City Manager to enter into a contract with WSB & Associates for engineering services for the Stemmer Ridge Road project. Part of the work was to prepare a Feasibility Report. On December 22, 2014 the City Council adopted Resolution #14-201 ordering the improvements. The City Council has also been working with the SMSC on an agreement whereby the SMSC would build Stemmer Ridge Road. This agreement has not yet been finalized. Phone 952.447.9800/Fax 952.447.4245/www.cityofpriorlake.com Current Circumstances Considering the outstanding issues with the SMSC agreement, it may be prudent to continue the steps toward a City led Special Assessment Project. The City of Prior Lake has sought proposals for professional engineering services. This request asked for proposals to provide engineering services for the Stemmer Ridge Road project. The consultant firms were evaluated by the City based upon the following criteria for general engineering services and the three improvement projects. • Value of services (50%) • The consultant's approach to and understand of requirements for general engineering services and project tasks (10%) • Consultant's experience with similar municipalities and contracts (10%) • Proposed staff's experience, communication skills, and qualifications (10%) • Consultant's ability to provide services on time and within proposed budget (10%) • Consultant's prior experience with the City (10%) The cost breakdown for the projects identified in the proposals as submitted is shown below: LH B $448,915 WSB &Associates $496,800 SRF Consulting $572,448 All three consultants are qualified to complete the project. Each firm has made different assumptions as a part of their proposal to determine their final cost breakdown. The hours dedicated to specific tasks differ between the proposals. To determine the best value, City Staff have dissected the proposals in reviewing the hourly rates, number of hours dedicated to the project tasks, and the assumptions made within each the proposal. It is possible that the assumptions made by each consultant may require a future amendment if these assumptions are wrong. Each consultant used different assumptions on various aspects of the project. The most significant difference is the amount of hours dedicated to construction observation. Because we are asking for full time construction observation, no one consultant could complete this work task in significantly less hours. The proposals from LHB and SRF included approximately 1400 hours for construction observation. WSB assumed 1992 hours. Construction observation can be the biggest unknown for consultants as they prepare their proposals. Factors that affect the actual number of hours include: weather, contractor, number of crews, contractor's other jobs, contractor experience, materials issues, or other delays. For this proposal, if the hours for construction observation were normalized at 1992, the approximate costs between the proposals are shown below: 2 _- WSB &Associates $496,800 LHB $502,000 SRF Consulting $620,000 If the number of hours for construction observation were the same, WSB & Associates would provide the lowest price for the work by a small margin over LHB. All the project teams can deliver the project. The cost for the design are extremely close between the LHB and WSB proposals. When the construction observation hours are normalized, the costs between these proposals are still very close. City Staff have evaluated the proposals based on the evaluation criteria outlined within the request for proposals and shown above and reviewed a normalized construction observation review. The Staff ranking is shown below: WSB— 1 LHB-2 SRF-3 WSB's team had a slight edge because of their current experience with this project and the City of Prior Lake. WSB performed the EAW and feasibility report for the City. They are also under contract to perform the right of way acquisition for this project, so from a coordination standpoint it would be easier to have one consultant for the project. From a value standpoint, the proposal submitted by WSB & Associates is the most affordable when the construction observation hours are normalized. In recent years WSB and Associates has completed the design and construction administration of the Arcadia/County Road 21 project, Ridgemont / Main Avenue / Trunk Highway 13 project, Crest and Carriage Hills Pavement Rehabilitation, and are currently working on the Duluth Avenue Improvement project. Their team is familiar with City Staff and City expectations. They handled the State Aid process well for the City through these projects. Based on their recent experience, they should have a good grasp of the design time needed for these projects. State Statute does not require the City Council to award Professional Services Contracts to the lowest cost provider. The City Council can determine the best value and award the contract accordingly. Conclusion The City has worked with WSB & Associates on previous projects and is comfortable with the proposals provided. City Staff recommends that WSB & Associates be selected for engineering services for the Stemmer Ridge Road Extension Project. ISSUES: Currently the City negotiating team continues the work on the SMSC agreement as well as proceed with the Special Assessment Project as directed by the city council. If the negotiations with the SMSC are successful and the City enters into an agreement with the SMSC, much of 3 the work approved with this action will not be needed because the SMSC will pay for these services as well as build Stemmer Ridge Road. Work completed by the consultant prior to agreement with the SMSC would be paid to the consultant but potentially would not be used if the agreement is reached. A revised work scope would be arranged with the selected consultant to assist the City in verifying sanitary sewer pipe alignments, review SMSC plans, and complete construction observation for City utilities. FINANCIAL The engineering services work will be funded through the Construction IMPACT: Fund for the Stemmer Ridge Road Project. ALTERNATIVES: 1. Approve a resolution awarding the City's Standardized Professional Services Agreement with WSB & Associates for the Stemmer Ridge Road Extension Project. 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: 4 04 p�0,4' ti u � 4646 Dakota Street SE '�Ixxsso��' Prior Lake, MN 55372 RESOLUTION 15-xxx A RESOLUTION ACCEPTING PROPOSALS, ENTERING INTO THE CITY'S STANDARDIZED PROFESSIONAL SERVICES AGREEMENT FOR ENGINEERING SERVICES FOR THE STEMMER RIDGE ROAD EXTENSION PROJECT(TRN14.000004)AND AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE SAID AGREEMENT Motion By: Second By: WHEREAS, Engineering Services is a necessary service needed to properly install City infrastructure; and, WHEREAS, Consultant expertise is needed for the Stemmer Ridge Road Extension; and, WHEREAS, The City does not have the resources to provide these services in-house; and, WHEREAS, The City received the following proposals for services: O ", 'Firm Nie LHB $448,915 WSB &Associates $496,800 SRF $572,448 The best value proposal was submitted by WSB & Associates when normalizing the construction observation hours; and WHEREAS, City Staff recommends award of the City's Standardized Professional Services Contract to WSB &Associates for the Stemmer Ridge Road Extension Engineering Services. 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. The Mayor and City Manager are authorized to execute the City's Standardized Professional Services Agreement with WSB &Associates for an amount of$496,800. 3. Funding for these engineering services will be drawn from Accounts#501-43500.00-55050.00. PASSED AND ADOPTED THIS 23rd DAY OF FEBRUARY 2015. VOTE Hedberg Keeney McGuire Morton Thompson Aye ❑ ❑ ❑ ❑ ❑ Nay ❑ ❑ ❑ ❑ ❑ Abstain ❑ ❑ ❑ ❑ ❑ Absent ❑ ❑ ❑ ❑ ❑ Frank Boyles, City Manager