HomeMy WebLinkAbout8A 2017 Reconstruction Accept Bids Report
4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: MAY 22, 2017
AGENDA #: 8A
PREPARED BY: NICK MONSERUD, PROJECT ENGINEER
PRESENTED BY: LARRY POPPLER, CITY ENGINEER/INSPECTIONS DIRECTOR
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION ACCEPTING BIDS AND AWARD-
ING THE CITY’S STANDARDIZED CONSTRUCTION CONTRACT FOR THE
2017 RECONSTRUCTION IMPROVEMENT PROJECTS (TRN17-000002,
TRN17-000003, TRN17-000004, TRN17-000005)
DISCUSSION: Introduction
The purpose of this agenda item is to ask the City Council to accept bids and
award a construction contract for the 2017 Reconstruction Improvement Projects.
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 2017 Improvement Project proposes to reconstruct the
street and upgrade utilities in four separate areas of the City. These areas include
Franklin Trail, Bluff Heights Trail (Franklin Trail); Cates St., Albany Ave. CJ Circle,
Five Hawks Ave. (Cates Area); Balsam St., Sunrise Ave., Spruce Circle and
Spruce Trail (Balsam Area); Sycamore Trail (Sycamore Trail). The proposed pro-
ject also includes pavement reclamation of a portion of Spruce Trail, Balsam St
and all of Spruce Circle. At its September 26, 2016 meeting the City Council
adopted Resolutions 16-118, 16-119, 16-120 and 16-121 authorizing staff to pre-
pare Feasibility Reports for the 2017 Improvement Projects 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.
For bidding purposes, the four project areas have been combined into one project.
This was done to simplify the bidding process, improve economies of scale and to
better coordinate construction scheduling with one contractor.
Franklin Trail:
The Franklin Trail area includes improvements to Bluff Heights Addition, Bluff
Heights Second Addition, Replat of lot 1 block 2 Bluff Heights Addition, Borgerding
2nd Addition, Timbercrest Park, Prior South, and CIC Nos. 1000,1002,1027,1131
and 1136 located in Section 1 and 2, Township 114, Range 22. Structures in this
area were built between 1971-2003 but most were generally built in the early
1980’s. The proposed improvements include street reconstruction or reclamation,
storm sewer, storm water quality, sanitary sewer, watermain, concrete curb and
gutter, and appurtenant work.
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On November 28, 2016, the City Council accepted the Feasibility Report, sched-
uled the public hearing for January 9, 2017, and directed staff to evaluate the inter-
section of Park Nicollet Ave. and Franklin Trail for possible improvements.
On January 9, 2017, the City Council continued the Public Hearing to February 13,
2017 in order to give residents ample time to review the Franklin Trail and Park
Nicollet Avenue Traffic Study prepared by Bolton & Menk.
As a separate document, the intersection of Franklin Trail and Park Nicollet Boule-
vard was reviewed. The traffic study documented the current condition and future
of this intersection. Currently the intersection functions at an acceptable level of
service, but considering a conservative growth factor, this intersection will not op-
erate at an acceptable level of service within the next 20 years. Several alterna-
tives were reviewed as a part of the report including an option with a pork chop is-
land as directed by the City Council. A mini-roundabout at this intersection ap-
peared to function best for the long term but it does add additional maintenance
demands on Public Works Staff. Direction was given to keep the intersection as is
with the future possibility of adding a left turn lane into Franklin Trail.
On February 13, 2017, the City Council held the Public Hearing and adopted Res-
olution 17-021 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
March 29, 2017 and offered residents the opportunity to comment on the proposed
plans. City staff explained the proposed design and went over potential property
impacts individually with residents.
On April 10, 2017, the City Council approved the project plans and specifications
and authorized the advertisement for bids for the 2017 Reconstruction Improve-
ment Projects.
Cates Area:
The Cates Street area includes improvements to RLS 161, Holly Court, Lakeside
Park 1st Addition, CIC 1191 Park Avenue Condominium, Lakeside Estates,
Lakeside Estates 1st Addition, Lakeside Estates 2nd Addition, Lakeside Estates 3rd
Addition, Lakeside Estates 5th Addition, R & C 1st Addition, Condo 1016 Glenview
Villa, CIC 1037 Cates Street located in Section 2, Township 114, Range 22.
Structures in this area were built between 1946-1999 but most were generally built
in the early 1980’s. The proposed improvements include street reconstruction or
reclamation, storm sewer, storm water quality, sanitary sewer, watermain, con-
crete curb and gutter, and appurtenant work.
On November 28, 2016, the City Council accepted the Feasibility Report, sched-
uled the public hearing for January 9, 2017. The Council also directed staff on the
following:
1. Remove the roadway east of Albany Avenue on Cates Street
2. Evaluate stormwater connections on Park Avenue
3. Evaluate the roadway section of Park Avenue
4. Remove the proposed hammerhead turn around on Five Hawks
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5. Provide trail cost estimates from the St. Michael Parking Lot through this
area to the north of Five Hawks school.
An amendment to the feasibility report was made in order to evaluate Council di-
rection. Ultimately it was decided to:
1. Remove the roadway east of Albany Avenue on Cates Street
2. Remove Park Avenue from the Cates Area reconstruction and incorporate
it in the 2018 Reconstruction Project.
3. Keep the proposed hammerhead turn around on Five Hawks
4. Not include trail and sidewalk as part of this project.
On January 9, 2017, the City Council held the Public Hearing and adopted Resolu-
tion 17-004 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
March 29, 2017 and offered residents the opportunity to comment on the proposed
plans. City staff explained the proposed design and went over potential property
impacts individually with residents.
On April 10, 2017, the City Council approved the project plans and specifications
and authorized the advertisement for bids for the 2017 Reconstruction Improve-
ment Projects.
Balsam Area:
The Balsam Street area includes improvements to Sunset Hills Addition located in
Section 10, Township 114, Range 22. Structures in this area were built in the late
1980s and early 1990s. The proposed improvements include street reconstruction
or reclamation, storm sewer, storm water quality, sanitary sewer, watermain, con-
crete curb and gutter, and appurtenant work.
At the November 28th, 2016 City Council meeting, the Council accepted the feasi-
bility study and scheduled the Public Hearing for January 23th, 2017. The Council
also directed staff on the following:
1. Review Traffic Calming Options
2. Review Narrowing the Streets within the Reconstruction and Reclamation
areas.
An amendment to the feasibility report was made in order to evaluate Council di-
rection. The amendment covered the following:
1. A speed study was performed and found that speeds were lower than 30
mph in three of four areas. It was decided that no traffic calming measures
are needed.
2. Narrowing the Streets within the reconstruction and reclamation areas was
reviewed and ultimately it was decided to keep the streets the same width
as they are currently.
On January 23, 2017, the City Council held the Public Hearing and adopted Reso-
lution 17-009 ordering the improvement project.
4
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 29, 2017 and offered residents the opportunity to comment on the proposed
plans. City staff explained the proposed design and went over potential property
impacts individually with residents.
On April 10, 2017, the City Council approved the project plans and specifications
and authorized the advertisement for bids for the 2017 Reconstruction Improve-
ment Projects.
Sycamore Trail:
Sycamore Trail includes improvements to Maplewood Townsite, RLS 33, RLS 94,
RLS 108, and Willows 1st Addition located in Section 3, Township 114, Range 22.
Structures in this area were built between 1928-1988 but most were generally built
in the 1970’s. The proposed improvements include street reconstruction or recla-
mation, storm sewer, storm water quality, sanitary sewer, watermain, concrete
curb and gutter, and appurtenant work.
At the November 28th, 2016 City Council meeting, the Council accepted the feasi-
bility study and scheduled the Public Hearing for January 23rd, 2017.
On January 23, 2017, the City Council held the Public Hearing and adopted Reso-
lution 17-010 ordering the improvement project.
Several options for a turnaround were brought to City Council and discussed, ulti-
mately staff was directed to provide a design for a hammerhead. Discussions with
the residents at the end of Sycamore Trail and the Willow Beach Association ulti-
mately determined the design in the current plan set. It should be noted that some
of the residents of Sycamore Trail still oppose a turnaround and would like to have
it removed from the design and the cost applied to burying the electric lines. (See
Mr. Mader’s letter). The same day this letter was received, the staff received a
phone call from a Sycamore resident clearly opposing utility burial and the costs
thereof.
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 29, 2017 and offered residents the opportunity to comment on the proposed
plans. City staff explained the proposed design and went over potential property
impacts individually with residents.
On April 10, 2017, the City Council approved the project plans and specifications
and authorized the advertisement for bids for the 2017 Reconstruction Improve-
ment Projects.
Current Circumstances
The City received a total of four (4) bids on May 11, 2017. The bids have been
checked and tabulated. Geislinger and Sons, Inc. from Watkins, Minnesota sub-
mitted the low bid in the amount of $4,742,010.90. The lowest bid was below the
updated engineer’s estimate of $5,280,632.60 by $538,621.70. The bid summary
is provided as follows:
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COMPANY BID AMOUNT
GEISLINGER AND SONS, INC. $4,742,010.90
NORTHDALE CONSTRUCTION $4,857,321.73
KUECHLE UNDERGROUND, INC. $5,046,671.85
RYAN CONTRACTING COMPANY $5,604,780.54
Bolton and Menk has provided the attached bid results letter with their opinion on
the bids and is recommending approval of the low bid from Geislinger and Sons.
Geislinger and Sons has been in business for many years. The City hasn’t worked
with Geislinger for over a decade, but they previously performed well.
Conclusion
Staff recommends award of this project to Geislinger and Sons, Inc for all four pro-
ject areas. The low bid provided by Geislinger and Sons has had a positive impact
on the overall funding and assessment calculations for the project. Staff believes
that bidding this as one project instead of four helped in reducing the overall costs.
ISSUES: 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 has been the past practice in residential neighborhoods, the Assess-
ment Review Workgroup recommends the unit method of assessment for the Cates
Area, Balsam Area and Sycamore Trail due to the fact that lots in the project area
are of similar size. Since Franklin Trail has a variety of property uses and common
areas the Assessment Review Workgroup recommended the area method. The
remaining amounts should be recovered through the general ad valorem property
tax.
The estimated assessment rates are shown as calculated in the Feasibility Report.
The actual assessment will be calculated based on the final construction costs.
As can be seen in the table below the low bid has a dramatic affect on the esti-
mated assessment rates and each project shows a reduction in the estimated as-
sessment:
Assessment Table
Project Area
Feasibility
Report
Bid
Estimate Change (+/-)
Franklin Trail $18,035.52/acre $13,819.60/acre -$4,215.92/acre
Cates Area $6,107/unit $4,754/unit -$1,353/unit
Balsam Area -
Reconstruction $10,435/unit $7,947/unit -$2,488/unit
6
Balsam Area -
Reclamation $4,337/unit $2,659/unit -$1,678/unit
Sycamore Trail $10,738/unit $10,527/unit -$211/unit
The assessment amount will be revised once construction is substantially com-
plete and all actual costs are better known. The assessment hearing will take
place in fall of 2017 after substantial completion of the improvement project.
The reduction in the assessment is considerable for each project area except Syc-
amore Trail. Sycamore Trail did see a reduction in the assessment rate but the
impact of the low bid was tempered by increased quantities for the Sycamore area
and additional design expenditures. By far Sycamore Trail was the most difficult
project area to design because of the terrain near the lake.
Some of the residents of Sycamore Trail believe that the overhead power lines
should be buried with this project. The City met with Xcel Energy to discuss this
burial. At the meeting, Xcel indicated that their facilities are in good condition and
are generally outside the work limits of the project. In these circumstances, it is not
their policy to bury the overhead power lines unless they are compensated. Xcel
stated that the cost of burial is estimated to be $90,000.
While the property owners may still want the overhead power buried, adding this
cost to the assessment is not recommended without receiving a waiver of assess-
ment appeal from the property owners in this area. In addition to the $90,000 cost,
individual service drops may require property owners to pay Xcel Energy for con-
version to underground services.
The City met with Xcel Energy again to discuss citywide overhead power burial.
From Xcel’s perspective overhead power functions well at a cheaper price but un-
derstands the aesthetics of burying power. After much discussion, Xcel Energy
committed to gathering more information for the City to review this topic on a
citywide scale. A mechanism to facilitate overhead power burial would be to raise
the franchise fees with the power companies to build a fund for power burial.
These fees would then be charged over all City properties through the power com-
pany billing. Once the fund has built up enough revenue it could be used to fund
the burial as the City undertakes projects.
Unless the project is delayed, this mechanism is not available for the Sycamore
Trail project. It should be noted that other overhead utilities exist in other areas of
2017 projects. If the city were to change its policy in this regard then the same ser-
vice should be available to them which would create delays for other projects.
There is much to consider if the City Council wishes to pursue this policy shift. Di-
rection to perform research on this topic and provide a report back to the City
Council is the first step. Much like decorative sidewalks or street lights, overhead
power is a matter of aesthetics which the City can choose to become involved in
for a price.
The time necessary to complete a policy change is insufficient in our opinion to in-
clude overhead power burial in this year’s program. In fact, to build a fund with suf-
ficient amounts for Sycamore may take several years depending on the franchise
7
fee amount. The city council could stop the Sycamore Trail project for 2017 by
voting the resolution ordering the project down tonight. However if this is done,
there is a strong possibility that if Sycamore is rebid in the future, the cost will be
higher because of the site characteristics and the considerable engineering in-
volved.
Many Sycamore Trail residents still do not desire a turnaround at the end of the
road. City Staff strongly recommends that the hammerhead turnaround be in-
cluded for the reasons outlined in the feasibility report:
1. Removes use of private property for turn arounds
2. Removes unsafe backing up operations on a 1300 foot dead end
3. Improves garbage truck operations
4. Improves Public Works operations
5. Lower cost than several of the other turnaround alternatives
Staff and the consultant have worked continuously with the property owners at the
end of Sycamore Trail to design a plan for the turn around which best fits within
the neighborhood. The design minimizes expense by reducing the need for retain-
ing wall and guardrail. Also, a biofiltration basin has been incorporated between
Sycamore Trail and Willow Beach Street. This will aid in providing stormwater
quality treatment for the Sycamore Trail and Willow Beach area. With the ham-
merhead option two easements will be required due to the lack of right-of-way to fit
a hammerhead, one from the Willow Beach Association and one from a private
property owner. Indications are that an agreement will be reached for these ease-
ments.
FINANCIAL
IMPACT:
Franklin Trail:
The Franklin Trail Area Improvement Project is proposed to be financed by Special
Assessments, tax levy, Sewer Fund, Water Fund, and Water Quality Fund. The
funding of each option and the corresponding estimated amounts are shown be-
low:
FRANKLIN TRAIL AREA IMPROVEMENT
PROJECT - FUNDING
Ad Valorem $1,091,585
Assessment (40%) $440,845
Utility Fund - Sewer $385,910
Utility Fund - Water $334,138
Water Quality Fund $73,283
Assessable Acreage 31.9 Acres
Assessment (Per Acre) –
Reconstruction $13,819.60
Total $2,325,760
The original Capital Improvement Plan estimate for this project was $2,866,403.
Cates Area:
8
The Cates Street Area Improvement Project is proposed to be financed by Special
Assessments, tax levy, Sewer Fund, Water Fund, and Water Quality Fund. The
funding of each option and the corresponding estimated amounts are shown be-
low:
CATES STREET AREA IMPROVEMENT
PROJECT - FUNDING
Ad Valorem $440,143
Assessment (40%) $323,265
Utility Fund - Sewer $183,255
Utility Fund - Water $388,071
Water Quality Fund $71,636
Assessment (Per Unit) –
Reconstruction $4,754
Total $1,406,371
The original Capital Improvement Plan estimate for this project was $1,875,432.
Balsam Area:
The Balsam Street Area Improvement Project is proposed to be financed by Spe-
cial Assessments, tax levy, Sewer Fund, Water Fund, and Water Quality Fund.
The funding of each option and the corresponding estimated amounts are shown
below:
BALSAM STREET AREA IMPROVEMENT
PROJECT - FUNDING
Ad Valorem $555,210
Assessment (40%) $408,458
Utility Fund - Sewer $259,762
Utility Fund - Water $330,047
Water Quality Fund $62,922
Assessment (Per Unit) –
Reclamation $2,659
Assessment (Per Unit) –
Reconstruction $7,947
Total $1,616,399
The original Capital Improvement Plan estimate for this project was $2,478,346.
Sycamore Trail:
The Sycamore Trail Improvement Project is proposed to be financed by Special
Assessments, tax levy, Sewer Fund, Water Fund, and Water Quality Fund. The
funding of each option and the corresponding estimated amounts are shown be-
low:
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SYCAMORE TRAIL AREA IMPROVE-
MENT PROJECT - FUNDING
Ad Valorem $230,613
Assessment (40%) $168,428
Utility Fund - Sewer $16,387
Utility Fund - Water $162,958
Water Quality Fund $54,374
Assessment (Per Unit) –
Reconstruction $10,527
Total $632,760
The original Capital Improvement Plan estimate for this project was $752,182.
ALTERNATIVES: 1. Approve a Resolution accepting bids and awarding the City’ Standardized
Construction Contract to Geislinger and Sons, Inc. for the 2017 Reconstruction
Improvement Project for all or a portion of the project areas identified above.
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 17-___
A RESOLUTION ACCEPTING BIDS AND AWARDING THE CITY’S STANDARDIZED
CONSTRUCTION CONTRACT FOR THE 2017 RECONSTRUCTION IMPROVEMENT
PROJECTS (TRN17-000002, TRN17-000003, TRN17-000004, TRN17-000005)
Motion By: Second By:
WHEREAS, Pursuant to an advertisement for bids for the 2017 Reconstruction Improvement
Projects (City Projects #TRN17-000002, TRN17-000003, TRN17-000004,
TRN17-000005) 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
GEISLINGER AND SONS, INC. $4,742,010.90
NORTHDALE CONSTRUCTION $4,857,321.73
KUECHLE UNDERGROUND, INC. $5,046,671.85
RYAN CONTRACTING COMPANY $5,604,780.54
and;
WHEREAS,
Geislinger 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. Geislinger and Sons, Inc. is the lowest responsible bidder.
3. The Mayor and City Manager are hereby authorized to enter into the City’s standard contract
with Geislinger and Sons, Inc. in the name of the City of Prior Lake for the 2017
Reconstruction Improvement Projects (Projects # TRN17-000002, TRN17-000003, TRN17-
000004, TRN17-000005) in the amount of $4,742,010.90.
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 these projects as shown in the following tables:
2
Franklin Trail:
FRANKLIN TRAIL AREA IMPROVEMENT
PROJECT - FUNDING
Ad Valorem $1,091,585
Assessment (40%) $440,845
Utility Fund - Sewer $385,910
Utility Fund - Water $334,138
Water Quality Fund $73,283
Assessable Acreage 31.9 Acres
Assessment (Per Acre) –
Reconstruction $13,819.60
Total $2,325,760
Cates Area:
CATES STREET AREA IMPROVEMENT
PROJECT - FUNDING
Ad Valorem $440,143
Assessment (40%) $323,265
Utility Fund - Sewer $183,255
Utility Fund - Water $388,071
Water Quality Fund $71,636
Assessment (Per Unit) –
Reconstruction $4,754
Total $1,406,371
Balsam Area:
BALSAM STREET AREA IMPROVEMENT
PROJECT - FUNDING
Ad Valorem $555,210
Assessment (40%) $408,458
Utility Fund - Sewer $259,762
Utility Fund - Water $330,047
Water Quality Fund $62,922
Assessment (Per Unit) –
Recclamation $2,658.70
Assessment (Per Unit) –
Reconstruction $7,947
Total $1,616,399
3
Sycamore Trail:
SYCAMORE TRAIL AREA
IMPROVEMENT PROJECT - FUNDING
Ad Valorem $230,613
Assessment (40%) $168,428
Utility Fund - Sewer $16,387
Utility Fund - Water $162,958
Water Quality Fund $54,374
Assessment (Per Unit) –
Reconstruction $10,527
Total $632,760
6. Construction costs will be recorded in the Construction Fund (#501-43500.00-55050.00
TRN17-000002) for the Cates St. Area Improvement Project.
7. Construction costs will be recorded in the Construction Fund (#501-43500.00-55050.00
TRN17-000003) for the Balsam St. Area Improvement Project.
8. Construction costs will be recorded in the Construction Fund (#501-43500.00-55050.00
TRN17-000004) for the Franklin Trail Improvement Project.
9. Construction costs will be recorded in the Construction Fund (#501-43500.00-55050.00
TRN17-000005) for the Sycamore Trail Improvement Project.
10. The City Council authorizes the intent to issue General Obligation Bonds for this project.
11. The City Council authorizes an inter-fund loan from the Water Fund if necessary to provide
interim funding until additional bonds are issued in 2017.
12. Proceeds from the bond sale will be deposited in the Construction Fund.
PASSED AND ADOPTED THIS 22TH DAY OF MAY 2017.
VOTE Briggs McGuire Thompson Braid Burkart
Aye ☐ ☐ ☐ ☐ ☐
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
______________________________
Frank Boyles, City Manager
h:\plak\t18112541\6_plans-specs\b_bid tabulation\bid results ltr.docx
May 15, 2017
Mr. Larry Poppler, PE
City Engineer / Inspections Director
4646 Dakota Street SE
Prior Lake, MN 55372
RE: Bid Results
2017 Street Reconstruction Project
City of Prior Lake
Project No.: T18.112541
Dear Mr. Poppler,
Bids for the 2017 Street Reconstruction Project were opened on Thursday, May 12, 2017. Four (4) bids
were received and ranged from $4,742,010.90 to $5,604,780.54.
The following is a bid summary:
Contractor Total Base Bid
Geislinger & Sons $4,742,010.90
Northdale Construction Company $4,857,321.73
Kuechle Underground Inc.$5,046,671.85
Ryan Contracting Company $5,604,780.54
Based on the summary above, Geislinger & Sons is the low bidder. Geislinger & Sons is a reputable
contractor who regularly performs this type of work for municipalities. Geislinger & Sons has
successfully completed many projects where Bolton & Menk has been the design engineer. If the City
Council wishes to award the Project to the lowest bidder, then Geislinger & Sons should be awarded the
Project on the Total Base Bid Amount of $4,742,010.90.
If you have any questions, please feel free to contact me at (651) 728-3172.
Sincerely,
Bolton & Menk, Inc.
Michael Warner, P.E.
Project Engineer