HomeMy WebLinkAbout8A 150th Street/TH 13 Award of Bid PRI04P
ti
4646 Dakota Street SE
Prior Lake, MN 55372
`yr soll.'
CITY COUNCIL AGENDA REPORT
MEETING DATE: JULY 27, 2015
AGENDA#: 8A
PREPARED BY: LARRY POPPLER, CITY ENGINEER/ INSPECTIONS DIRECTOR
PRESENTED BY: LARRY POPPLER
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION CONCURRING WITH THE
AWARD OF THE BID FOR THE 150TH STREET/TH 13 IMPROVEMENT PRO-
JECT
DISCUSSION: Introduction
The cities of Savage and Prior Lake, along with Mn/DOT, have been working
cooperatively to finalize the project for construction on the 150th Street/TH 13
intersection. The bids and funding package will be reviewed with this agenda
item.
History
In response to concerns regarding safety at the TH 13/150th Street Intersection
the Cities of Prior Lake and Savage initiated a joint intersection improvement
study in 2007 with the final report date of February 12, 2010. This study area
includes TH 13 between 152nd Street and Rustic Road.
Once the study was complete an Intersection Control Evaluation (ICE) was pre-
pared and a concept layout was approved and each agency began program-
ming the project in their respective Capital Improvement Plans.The original con-
cept layout provided a 3/4 unsignalled access at 150th Street, right in / right out
access at Zinran, and a pedestrian underpass. Ultimately each agency settled
on 2015 for construction.
Since the original study was commenced, a number of things have changed in
the traffic intensity and patterns in the study area:
1. Construction of Aspen Academy Charter School at the intersection of
Zinran and TH 13.
2. Residential Development along 150th Street just east of TH 13 adding
additional traffic.
3. Increase in traffic to and from the High School.
In 2014, a feasibility report was prepared and included several alternatives for
this project. Two alternatives were debated in September. Ultimately, on con-
secutive nights September 15 and 16, 2014 the Savage and Prior Lake City
Councils selected Concept 5B along with a Cost Sharing Agreement for the pro-
ject.
A Project Management Team (PMT) was formed to provide guidance on the
development of the final design for this project. The PMT includes representa-
tives from the Minnesota Department of Transportation (Mn/DOT), SEH, and the
Phone 952.447.9800 / Fax 952.447.4245/www.cityofpriorlake.com
cities of Prior Lake and Savage. PMT meetings have generally been held weekly
since the October City Council action in addition to a separate meeting to dis-
cuss easement acquisition coordination. The 60% plans were completed on De-
cember 29, 2014 which is consistent with the project schedule. The final design
plans were completed by February 23, 2015.
On February 9th, the City Council authorized additional property acquisition
costs up to $1,030,150 as these costs have risen due to a variety of factors.
The property acquisition process continues as not all properties have agreed to
the offers presented. Current projections show property acquisitions may total
$1.2 Million. To date, $550,000 has been paid for property acquisition on this
project. Approximately $500,000 in other project acquisition support costs have
also been spent to date.
On July 13th, the City Council approved a Cooperative Agreement with MNDOT
for the project.
Current Circumstances
On July 17th, the City of Savage received six bids on the project. These bids
were checked and tabulated by the consulting engineer, SEH Inc. The bids
amounts are shown in the following table:
Company Bid Amount
SM Hentges and Sons, Inc $6,570,197.88
Ames Construction $6,580,393.00
Meyer Contracting, Inc $7,052,109.14
Max Steininger, Inc $7,379,749.23
C.S. McCrossan Construction, Inc $7.745,962.55
Northwest Asphalt $7,884,349.82
As a heavy highway project, this bid attracted larger highway contractors than
the City attracts for local road projects. The low bid was from SM Hentges and
Sons Inc. from Jordan Minnesota. SM Hentges was very active in City and
County projects in the late 2000's. As SM Hentges has grown as a company
they began working on larger projects like the 150th and TH 13 project through-
out the region. The City last employed SM Hentges and Sons in 2008 for the
Brooksville Hills Phase I reconstruction project. They completed that project
well ahead of schedule and under budget.
Analysis of Bids
The latest Engineer's Estimate was $6,362,000. The low bid amount was
$208,000 (3%) over the Engineer's Estimate. Rebidding the project is an op-
tion. MNDOT funding is programmed through the fiscal year that ends June
30th, 2016. So as long as construction has started prior to that date, MNDOT
funding is secure. However, MNDOT specifications are changing in October
of 2015, so if the project is bid after October, the plans and specifications for
the project would require modification. It is possible that a better bid could be
garnered in the spring of 2016, however there is an equal risk that material
prices will continue rise and higher bids would be received.
2
While the increase in the cost of the project is substantial from the original esti-
mates, the City Council has consistently communicated the importance of this
project. Based on the good number of bidders and small difference between
the top two bidders, it is apparent that the bidding environment was competi-
tive and the bid represents the going rate for this project.
Conclusion
Based on the above analysis, City Staff recommends that the City of Prior Lake
provide concurrence of award of the bid to the low bidder SM Hentges and Sons.
ISSUES: The costs for this project have increased since the project was approved by the
City Council in September, 2014 for a variety of reasons. The original prelimi-
nary design did not contemplate the extent of work in Prior Lake at the 150th
Street and Estate Avenue. The work involved to build this intersection to
MNDOT State Aid Standards is extensive and includes additional property ac-
quisition (in Prior Lake) and construction costs as a result. Due to soil condi-
tions, costs for construction of large retaining walls also contributed to the addi-
tional costs. The inclusion of the left turn lane for Rustic Road was another item
which contributed to the additional costs.
On the other hand this project represents the third intersection project along TH
13 which has been completed to improve safety now and for decades to come.
We have been aware that these major projects will be of considerable cost.
Soon a fourth will be undertaken at TH13 and Duluth and eventually TH 13 and
CR 21 which may be the largest cost of all.
This project is by far the most complex, owing to the involvement of three public
agencies. This new intersection has the capacity for expected traffic increases
for years to come since traffic signals and appropriate lanes and channelization
are part of the plan. The project also includes the first section of trail along TH13,
a safety improvement which has been widely supported and eagerly awaited to
begin to fill a key gap in our trail system.
This is the last significant approval which will get this project under construction.
Other approvals may be necessary for right of way acquisition. It is anticipated
that the project will be completed in the summer of 2016. The approximate
timetable and plan for construction is as follows:
Phase I Temporary widening of TH 13 (east side) Summer 2015
150th Street intersection (Savage)
Phase II 150th Street (Prior Lake) Fall 2015
150th Street intersection (Savage)
Glascow
TH 13 retaining walls along TH 13 and lake
Phase III TH 13 west side (southbound lanes) Spring 2016
Phase IV TH 13 east side (northbound lanes) Summer 2016
150th Street (Savage)
Signal System
Work will occur while Highway 13 remains open. Local street closures are nec-
essary at various times during construction including closures of Oakland Beach
3
at TH 13, Zinran at TH 13, 150th Street, Aquila Avenue, and Estate Avenue at
150th Street.
FINANCIAL The MNDOT contribution is proposed to be $2.242 Million. In accordance with
IMPACT: the cost sharing agreement, the Cities of Prior Lake and Savage will split the
remainder of the cost the project including design, right of way acquisition, con-
struction costs, and project support costs whereby the City of Prior Lake would
pay$857,000 more than Savage and pay for property acquisition costs over the
originally estimated $862,000. Below is the latest cost information for this pro-
ject:
Construction Bid* $6,570.198
Demolition of Homes $57,630
State Furnished Materials $25,363
Property Acquisition
Pending Negotiations $1,195,210
Legal Costs $19,511
Appraisals $45,000
Other Legal Costs $5,384
Geotechnical Exploration $19,780
Topographic Survey and Wetland Delineation $32,210
Final Design, ROW Services, and bidding $292,083
Final Design Amendment $77,277
Construction Administration $472,974
TOTAL $8,812,620
* Includes City Utility work.
The table below compares the City Cost of this project:
FUNDING CIP PRELIMINARY FINAL DESIGN
SOURCE ESTIMATE DESIGN PER PER COST SHAR-
COST SHAR- ING AGREEMENT
ING AGREE-
MENT
State Aid $500,000 $900,000 $1,000,000
Street Oversize $150,000 $250,000 $250,000
Fund
Tax Levy $650,000 $1,418,500 $2,516,630
Water Quality Fund $60,000 $60,000 $60,000
Water & Sewer $200,000 $200,000 $25,912
Fund
TOTAL CITY COST $1,360,000 $2,828,500 $3,852,542
The following table compares the contributions for each funding partner:
FUNDING SOURCE PRELIMINARY DE- FINAL DESIGN PER
SIGN PER COST COST SHARING
SHARING AGREE- AGREEMENT
MENT
4
City of Prior Lake $2,828,500 $3,852,542
City of Savage $1,971,500 $2,718,078
MNDOT $2,102,000 $2,242,000
TOTAL CITY COST $6,902,000 $8,812,620
ALTERNATIVES: 1) Approve a Resolution concurring with award of the bid for the for the 150th
Street and Trunk Highway 13 Improvement Project.
2) Deny this item for a specific reason and provide staff with direction.
3) Table this item until some date in the future.
RECOMMENDED A motion and second for approval of alternative number 1.
MOTION:
5
04 PRI043
h O
U �
4646 Dakota Street SE
4INNEso',' Prior Lake, MN 55372
RESOLUTION 15-xxx
A RESOLUTION OF CONCURRENCE OF AWARD OF A CONTRACT FOR THE 150TH STREET AND
HIGHWAY 13 IMPROVEMENT PROJECT
(STATE PROJECT#7001-104, CITY PROJECT#TRN15.000001)
Motion By: Second By:
WHEREAS, The reconstruction of the 150th Street and TH 13 intersection is considered a priority to the
City of Prior Lake, City of Savage and MNDOT, and
WHEREAS, Pursuant to an advertisement for bids for the 150th Street/TH 13 Improvement Project(State
Project#7001-104, City Project#TRN15-000001), bids were received, opened, and tabulated
according to law by the City of Savage; and
WHEREAS, The following bids were received complying with the advertisement:
Company Bid Amount
SM Hentges and Sons, Inc $6,570,197.88
Ames Construction $6,580,393.00
Meyer Contracting, Inc $7,052,109.14
Max Steininger, Inc $7,379,751.15
C.S. McCrossan Construction, Inc $7.745,962.55
Northwest Asphalt $7,884,349.82
and;
WHEREAS, SM Hentges and Sons, Inc 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. SM Hentges and Sons, Inc. is the lowest responsible bidder.
3. The Prior Lake City Council concurs with award of a contract to SM Hentges and recommends that the
City of Savage award a contract to SM Hentges for the 150th and Highway 13 Improvement Project
(State Project#7001-104, City Project#TRN15-000001) in the amount of$6,570,197.88.
4. The City Council authorizes funding for this project as shown in the following table and in accordance
with the cost sharing agreement between the City of Prior Lake and the City of Savage:
State Aid $1,000,000
Street Oversize Fund $250,000
Tax Levy $2,516,630
Water Quality Fund $60,000
Water and Sewer Fund $25,912
Project Total Cost $3,852,542
5. Construction costs will be recorded in the Construction Fund (#501-43500.00-55050.00 TRN15-
000001)for the 150th and TH 13 Improvement Project.
6. The City Council authorizes fund transfers into the construction fund as indicated in the above
table.
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 27th DAY OF JULY 2015.
VOTE Hedberg Keeney McGuire Morton Thompson
Aye ❑ ❑ ❑ ❑ ❑
Nay ❑ ❑ ❑ ❑ ❑
Abstain ❑ ❑ ❑ ❑ ❑
Absent ❑ ❑ ❑ ❑ ❑
Frank Boyles, City Manager
2