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Home My WebLink About8A Accept Bids Award Contract Credit River Road O� PRION N u t" 4646 Dakota Street SE Prior Lake, MN 55372 4/1 NEso* CITY COUNCIL AGENDA REPORT MEETING DATE: MAY 26, 2015 AGENDA#: 8A PREPARED BY: SENG THONGVANH, PROJECT ENGINEER PRESENTED BY: SENG THONGVANH AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION ACCEPTING BIDS AND AWARD- ING THE CITY'S STANDARDIZED CONSTRUCTION CONTRACT FOR THE CREDIT RIVER ROAD IMPROVEMENT PROJECT (CITY PROJECT#TRN15- 000006) DISCUSSION: Introduction The purpose of this agenda item is to accept bids and award a construction con- tract for the Credit River Road Improvement Project. History Each year the City reconstructs street segments that are scheduled for reconstruc- tion as part of its Capital Improvement Program (CIP) and have exceeded their useful design life. The City uses the Capital Improvement Program and its Pave- ment Management Program to plan for infrastructure improvements and the fi- nancing for capital improvements. At its August 25, 2014 meeting the City Council adopted Resolution 14-124 authorizing staff to prepare a Feasibility Report for the Credit River Road Improvement Project as outlined in the CIP. The M.S. Chapter 429 process applies to all projects that will be financed in whole or in part through special assessments or bond proceeds. The Credit River Road neighborhood is considered in the report and includes im- provements to Borgerding Addition, Brooksville Hills 1st Addition, Brooksville Hills 8th Addition, Costello's Addition, S 02, T 114, R 22 Block 001, Lot 002 & 003 and portions of Sections 1 & 2, Township 114, Range 22. These properties were plat- ted and developed from as early as 1920's to as late as the 1990's. A map of the project area (Figure 1) is included in the Feasibility Report. The proposed im- provements include street reconstruction, storm sewer, storm water quality, sani- tary sewer, forcemain, lift station, watermain, concrete curb and gutter, and appur- tenant work. The Credit River Road project serves to re-build a critical lift station in the south- east region of the City as well as supporting sanitary sewer piping. The project will also replace watermain which has shown a history of breaks through the years. The street pavement condition is such that reconstruction is necessary. This pro- ject will address all of the above issues. On November 24, 2014, the City Council accepted the feasibility report and sched- uled the Public Hearing. The hearing was held on December 22, 2014 and the City Council adopted Resolution 14-202 ordering the project and preparation of plans and specifications. In addition to the Public Hearing, the City has held three informational meetings to discuss the project. The last informational meeting was an open house held on March 25, 2015 and offered residents the opportunity to comment on the proposed plans. At the open house, persons from 8 properties were in attendance. City staff explained the proposed design and passed out information regarding the driveway program. The majority of the property owners present inquired about the assessment amount and if the special benefit appraisals have been completed. Since the meeting, City staff have been busy finishing up the project plans. As part of the Feasibility Report, potential impacts to Credit River Road due to fu- ture reconstruction of the TH 13/CR 21 intersection was evaluated. The main op- tions were to acquire property and place the alignment of Credit River Road where it would not be impacted in the future or build the road in its existing alignment and utilize a temporary section where future impacts may take place. In late 2014, Scott County submitted an application for Federal funding for the TH 13/CR 21 re- construction project for 2019. Due to the potential of the project moving forward in 2019, City staff reached out to Scott County to discuss the building of Credit River Road to meet the needs of the future TH 13/CR 21 project. Scott County agreed that Credit River Road should be built to accommodate future needs of the area. This would also eliminate future disruption to residents on Credit River Road. In order to facilitate the new alignment of Credit River Road, property acquisition from 5 properties is necessary. City staff has designed the alignment of Credit River Road to account for the future alignment and has calcu- lated the amount of right-of-way necessary for this work. Scott County will take the lead on the property acquisition portion for the project. The estimated cost for property acquisition is detailed in the Cooperative Agreement. Scott County will be funding the bulk of the property acquisition cost with the City contributing. Ap- praisals are currently taking place for the properties. On April 13, 2015 the City Council approved the project plans and specifications and authorized the advertisement for bids for the Credit River Road Improvement Project. Current Circumstances The City received a total of four bids on May 13, 2015. The bids have been checked and tabulated. Chard Tiling from Belle Plaine, Minnesota submitted the low bid in the amount of$2,776,073.50. The lowest bid was above the updated engineer's estimate of$2,600,000. The bid summary is provided as follows: �. COMPANY :� ` � : BID AMOUNT CHARD TILING & EXCAVATING $2,776,073.50 RYAN CONTRACTING $2,852,760.50 GEISLINGER & SONS, INC. $3,198,584.81 NORTHWEST ASPHALT $3,723,632.80 While the low bid amount was above the engineer's estimate, considering the number of bidders, the low bid appears to be the appropriate cost for this project in today's market. The street and utility costs were close to expected. The higher 2 cost associated with the lift station pushed the total project cost higher than antici- pated. Contractors cited the depth of the lift station and the soil conditions as rea- sons for the higher costs. Such costs will be borne by the city's trunk fund. ISSUES: Due to the work involved the costs have risen from original estimates as high- lighted above. The timing of bidding could have also played a role in higher prices, but bidding was still early enough in the season,just not ideal bid timing. In con- trast to last year, this construction season has already been very productive be- cause of early thawing of the winter frost. Contractors have expressed that they have already been working toward completion of other projects and that the timing of this project is good. Considering the rising cost of materials and somewhat sta- ble fuel prices, a bid in the early spring of 2016 may not yield better pricing. Con- sidering these factors Staff recommends award of this project to Chard Tiling and Excavating. Construction Contract Chard Tiling is currently the contractor for the Maple Lane, Mushtown Road, Pan- ama Avenue Improvement Project as well as the 2015 Neighborhood Project. Alt- hough Chard Tiling had some issues with the construction of the lift station for Sunset Avenue, the overall project was completed in a satisfactory manner. Construction Schedule The final alignment of Credit River Road at Evanston Avenue requires that prop- erty acquisition is in place prior to construction. Property acquisition is a tedious process that is estimated to take 5-11 months. This timeline will dictate if the pro- ject can be completed in one or two construction seasons, depending if the proper- ties can be acquired in time for construction this year. If property cannot be ac- quired in time for construction this year, the portion of Credit River Road at Evans- ton Avenue will be constructed with gravel for temporary access through the winter and constructed once the property acquisition is complete. Assessment Review Committee The Assessment Review Committee met on May 18, 2015 to review the bids re- ceived and estimated assessment amount based on the unit bid prices. Pursuant to the Assessment Policy, the street and storm sewer reconstruction should be as- sessed at up to 40% of the total project cost against the benefiting properties. As been in past practice in residential neighborhoods, the Assessment Review Com- mittee has recommended the unit method of assessment due to the fact that lots in the project area are of similar size and/or value. The remaining amounts should be recovered through the general ad valorem property tax. The estimated assessment rate per the Feasibility Report was proposed at $14,785/unit. With the bid prices, the estimated assessment amount is calculated to be $14,959/unit. A special benefit consultation was completed for the project area. The consultation determined that the special benefit amount is $10,500/unit. As such, the Assessment Review Committee recommends assessing the proper- ties $10,500 per unit, which is less than the calculated amount. The total assess- ment of$283,500 will be 25% of the bonding amount, which would meet statutory requirement that the project assessment amount must be a minimum of 20% of the bonding amount. The city council is NOT setting the special assessment levy amount tonight. Ra- ther they are awarding the contract so the project can proceed. A separate special 3 assessment hearing which will be noticed to properties in the project will be con- ducted at a later date for the purpose of setting the special assessments. FINANCIAL The Credit River Road Improvement Project is proposed to be financed by Special IMPACT: Assessments, tax levy, Street Oversize Fund, Sewer Fund, Water Fund, and Trunk Sewer Fund. The amount shown in the table below is an estimate based on the estimated construction costs as calculated with bid unit prices. Funding sources and amounts are as shown below: ITEMS COST Street/Storm Sewer* $1,302,997.15 Watermain $ 331,617.85 Sanitary Sewer $1,141,458.50 Street Lights $ 10,000.00 Scott County Coop Agreement $ 65,000.00 City's Project Support Costs** $ 258,349.04 TOTAL PROJECT COST $3,109,422.54 *Includes Water Quality Costs **City's Project Support Costs includes the following: Engineering Administration Financing Assessments* $283,500.00 Sewer Fund $236,664.06 Water Fund $398,719.39 Water Quality Fund $18,068.32 Street Oversize Fund $179,538.08 Trunk Sewer Fund $1,156,264.34 Tax Levy $836,668.34 Project Total Cost $3,109,422.54 *Total assessment amount is based on per unit assessment of$10,500 per the special benefit consultation. ALTERNATIVES: 1. Approve a Resolution accepting bids and awarding the City's Standardized Con- struction Contract to Chard Tiling & Excavating for the Credit River Road Im- provement Project#TRN15-000006. 2. Deny this item for a specific reason and provide staff with direction. 3. Table this item until some date in the future. RECOMMENDED Motion and second for approval of alternatives#1. MOTION: 4 P�O6001 rr� 4646 Dakota Street SE 'i'jmvssdtt" Prior Lake, MN 55372 RESOLUTION 15-xxx A RESOLUTION ACCEPTING BIDS AND AWARDING THE CITY'S STANDARDIZED CONSTRUCTION CONTRACT FOR THE CREDIT RIVER ROAD IMPROVEMENT PROJECT (CITY PROJECT#TRN15-000006) Motion By: Second By: WHEREAS, Pursuant to an advertisement for bids for Credit River Road Improvement Project(City Project#TRN15-000006)which includes sanitary sewer, forcemain, lift station, 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 BID AMOUNT CHARD TILING & EXCAVATING $2,776,073.50 RYAN CONTRACTING $2,852,760.50 GEISLINGER & SONS, INC. $3,198,584.81 NORTHWEST ASPHALT $3,723,632.80 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 Credit River Road Improvement Project(Project#TRN15-000006) in the amount of$2,776,073.50. 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* $283,500.00 Sewer Fund $236,664.06 Water Fund $398,719.39 Water Quality Fund $18,068.32 Street Oversize Fund $179,538.08 Trunk Sewer Fund $1,156,264.34 Tax Levy $836,668.34 Project Total Cost $3,109,422.54 6. Construction costs will be recorded in the Construction Fund (#501-43500.00-55050.00 TRN15- 000006)for the Credit River Road 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 26th DAY OF MAY 2015. VOTE Hedberg Keeney McGuire Morton Thompson Aye ❑ ❑ ❑ ❑ ❑ Nay ❑ ❑ E ❑ 0 Absent 0 0 0 0 0 Abstain 0 0 ❑ 0 ❑ Frank Boyles, City Manager 2