The URL can be used to link to this page

Home My WebLink About8A Manitou Road Accept Bids 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: APRIL 25, 2016 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 FOR THE MANITOU ROAD IMPROVEMENT PROJECT (TRN16-000001) DISCUSSION: Introduction The purpose of this agenda item is to ask the City Council to accept bids and award a construction contract for the Manitou Road Improvement Project. History The City uses the Five Year Capital Improvement Program and its Pavement Man- agement program to plan its infrastructure improvements and the financing for capital improvements. The 2016 Improvement Project proposes to reconstruct the street and upgrade utilities on Manitou Road, Black Oak Road, Hidden Pond Trail, Raspberry Ridge Road, and Timberglade Circle. The proposed project also in- cludes bituminous overlay of Appaloosa Trail and Highland Court. At its August 24, 2015 meeting the City Council adopted Resolution 15-137 authorizing staff to prepare a Feasibility Report for the 2016 Improvement Project as outlined in the CIP. The M.S. Chapter 429 process applies to all projects that will be financed in whole or part through special assessments or bond proceeds. The Manitou Road and Raspberry Ridge neighborhoods are considered in the re- port and includes improvements to Kopps Bay Addition, Kopps Bay Second Addi- tion, Mary Margaret 1st Addition, Raspberry Ridge Addition, Raspberry Ridge 1st Addition, Raspberry Ridge 2nd Addition, and Raspberry Ridge 3rd Addition located in Sections 26 & 25, Township 115, Range 22. These properties were platted and developed from 1950’s to 1990’s. A map of the project area (Exhibit 1) is included in the Feasibility Report. The proposed improvements include street reconstruc- tion or reclamation, storm sewer, storm water quality, sanitary sewer, watermain, concrete curb and gutter, and appurtenant work. On November 23, 2015, the City Council accepted the Feasbility Report, sched- uled the public hearing, and directed staff to evaluate two additional options for cost savings. The two additional options were evaluated by Staff and presented to City Council at the December 14, 2015 Council Workshop. Both options included improve- ments to Manitou Road, lining of the 15” RCP sanitary sewer, and different options addressing the larger watermain pipes within the Raspberry Ridge Neighborhood. 2 Option “C” proposes to use open cut replacement for the 16” watermain and re- construction of the street sections that contains the 16” watermain pipes. This op- tion would assess for street reconstruction per the assessment policy. Option “D” proposes to use trenchless technology (lining) to rehabilitate the existing 16” wa- termain and no reconstruction of the existing streets within the Raspberry Ridge Neighborhood. After discussion of all the options, the Council directed staff to pro- ceed with Option D. On January 11, 2016, the City Council held the Public Hearing and adopted Reso- lution 16-006 ordering the improvement project. 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 February 17, 2016 and offered residents the opportunity to comment on the pro- posed plans. At the open house, persons from 13 properties were in attendance. City staff explained the proposed design and passed out information regarding the private driveway program. During the design process, a number of property own- ers voiced concerns regarding the alignment of the street and how it would impact their properties. After evaluation of the alignment and existing conditions, the alignment of Manitou Road did not change much except for three areas where the alignment may have shifted 2-3’. The shifts were not significant and were neces- sary to provide safer curves and tangents. Positive feedback was received for the proposed alignment at the open house. On March 14, 2016 the City Council approved the project plans and specifications and authorized the advertisement for bids for the Manitou Road Improvement Pro- ject. Current Circumstances At the March 14, 2016 City Council meeting, staff presented a proposed water- main alignment on the boulevard of County Road 21 from Lord Street to 640 feet north of Raspberry Ridge Road. Staff had a consultant analyze the existing 12” watermain on the west side of County Road 21 to see if it would supply sufficient flow without adding additional watermain from Lord Street to Raspberry Ridge Road. The analysis shows that the 12” watermain would provide sufficient flow to the north. With this information, the 16” watermain proposed from Lord Street to Raspberry Ridge Road was eliminated from the project scope. The 16” watermain from Raspberry Ridge Road to approximately 640’ north will still need to be in- stalled. The reduction in project scope should be provide additional cost savings to the project. The City received a total of three (3) bids on April 19, 2016. The bids have been checked and tabulated. Northwest Asphalt, Inc. from Shakopee, Minnesota sub- mitted the low bid in the amount of $1,785,426.40. The lowest bid was below the updated engineer’s estimate of $2,308,000. The bid summary is provided as fol- lows: 3 COMPANY BID AMOUNT NORTHWST ASPHLT, INC. $1,785,426.40 NORTHDALE CONSTRUCTION $1,969,236.87 GEISLINGER AND SONS, INC. $2,242,904.82 ISSUES: Northwest Asphlt recently completed the Boudins Phase II project as well as numer- ous development projects within the City. The contractor is currently working on a number of projects within Prior Lake. Pursuant to the Assessment Policy, the street and storm sewer reconstruction should be assessed at up to 40% of the total project cost against the benefiting properties. As been in past practice in residential neighborhoods, the Assessment Review Workgroup recommends the unit method of assessment due to the fact that lots in the project area are of similar size. The remaining amounts should be recov- ered through the general ad valorem property tax. The estimated assessment rate per the Feasibility Report is proposed at $11,207/unit. The actual assessment will be calculated based on the final con- struction costs. A number of residents have shared their concerns that the as- sessment rate was high and they are hoping for lower assessments once the bids have been received. With the bids received, the estimated proposed assessment is $9,410/unit, which is $1,797 lower than the Feasibility Report assessment amount estimate. The assessment amount will be revised once construction is substantially complete. The assessment hearing will take place in fall of 2016 af- ter substantial completion of the improvement project. FINANCIAL IMPACT: The Manitou Road Improvement Project is proposed to be financed by Special As- sessments, tax levy, Sewer Fund, Water Fund, and Water Quality Fund. The amount shown in the table below is based on the lowest bid received. Funding sources and amounts are shown below: Funding Source Amount Ad Valorem $660,303 Assessment (40%) $432,735 Utility Fund – Sewer $364,455 Utility Fund – Water $578,167 Water Quality Fund $56,768 Assessment (Per Unit) – Reconstruc- tion $9,410 Total $2,092,428 4 ALTERNATIVES: 1. Approve a Resolution accepting bids and awarding the City’ Standardized Construction Contract to Northwest Asphalt, Inc. for the Manitou Road Im- provement 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 MOTION: A motion and a second for approval of Alternative #1. 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 16-xxx A RESOLUTION ACCEPTING BIDS AND AWARDING THE CITY’S STANDARDIZED CONSTRUCTION CONTRACT FOR THE MANITOU ROAD IMPROVEMENT PROJECT (CITY PROJECT #TRN16-000001) Motion By: Second By: WHEREAS, Pursuant to an advertisement for bids for Manitou Road Improvement Project (City Project #TRN16-000001) 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: COMPANY BID AMOUNT NORTHWEST ASPHALT, INC. $1,785,426.40 NORTHDALE CONSTRUCTION $1,969,236.87 GEISLINGER AND SONS, INC. $2,242,904.82 and; WHEREAS, Northwest Asphalt, 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. Northwest Asphalt, Inc. is the lowest responsible bidder. 3. The Mayor and City Manager are hereby authorized to enter into the City’s standard contract with Northwest Asphalt, Inc. in the name of the City of Prior Lake for the Manitou Road Improvement Project (Project #TRN16-000001) in the amount of $1,785,426.40. 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: 2 Funding Source Amount Ad Valorem $660,303 Assessment (40%) $432,735 Utility Fund – Sewer $364,455 Utility Fund – Water $578,167 Water Quality Fund $56,768 Total $2,092,428 6. Construction costs will be recorded in the Construction Fund (#501-43500.00-55050.00 TRN16- 000001) for the Manitou 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 2016. 9. Proceeds from the bond sale will be deposited in the Construction Fund. PASSED AND ADOPTED THIS 25TH DAY OF APRIL 2016. VOTE Hedberg Keeney McGuire Morton Thompson Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager