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Home My WebLink About8A Rolling Oaks Accept Bids Report 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: SEPTEMBER 5, 2017 AGENDA #: 8A PREPARED BY: LARRY POPPLER, ASSISTANT PUBLIC WORKS DIRECTOR/CITY ENGINEER PRESENTED BY: LARRY POPPLER AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AWARDING BIDS AND AUTHOR- IZING THE MAYOR AND CITY MANAGER TO ENTER INTO THE CITY’S STANDARD CONSTRUCTION CONTRACT FOR THE ROLLING OAKS IM- PROVEMENT PROJECT (PROJECT #TRN13-000006) DISCUSSION: Introduction This agenda item is necessary to award a construction contract for the Rolling Oaks Improvement Project. With approval, construction will begin this fall. History The City uses the Five Year Capital Improvement Program to plan its infrastruc- ture improvements and the financing for capital improvements. The Rolling Oaks Improvement project proposes to extend utility connections and improve the road- way for properties within the project area. In 2014, a feasibility report for this project was prepared. On April 28, 2014, the City Council approved a resolution accepting a feasibility report for the project. On May 27th, 2014, the City Council held a Public Hearing and on June 23rd author- ized the preparation of plans and specifications. Soon after these authorizations were approved, the developer for the neighboring property retracted their develop- ment application. Since the developer contribution was an important funding source for the Rolling Oaks project, work on the city project for Rolling Oaks stopped. A grant application was submitted to the Minnesota Public Facilities Au- thority but was not selected for funding. On May 9th, the City met with property owners from Rolling Oaks. After much dis- cussion, there was consensus that a feasibility report update was needed to fully evaluate options for a project. At its May 22, 2017 meeting the City Council adopted Resolution 17-074 authoriz- ing staff to prepare a Feasibility Report for the Rolling Oaks Improvement Project as outlined in the CIP. In this case a feasibility report was originally prepared in 2014 and a memo amendment was prepared to update the feasibility report. On June 12, 2017, the City Council adopted Resolution 17-090 accepting the fea- sibility report and calling for the public hearing. The City Council also adopted Resolution 17-091 authorizing the preparation of plans and specifications for the project. The M.S. Chapter 429 process applies to all projects that will be financed in whole or part through special assessments or bond proceeds. 2 Rolling Oaks Circle is considered in the report and includes first time improve- ments to Rolling Oaks located within the Northeast quarter of section 26, Town- ship 115 North, Range 22 West, Scott County Minnesota. Structures in this area were built in the 1960s and 1970s. A map of the project area (Exhibit 1) is in- cluded in the original Feasibility Report. The proposed improvements include street construction, storm sewer, storm water quality, sanitary sewer, watermain, concrete curb and gutter, and appurtenant work. On July 24th, 2017 the City Council held the public hearing for the project. One person spoke at the hearing asking for clarification on the connection charge for future lots and the inclusion of his property as a part of the sewer and water com- ponent of the assessment. Current Circumstances The City received a total of Ten (10) bids on August 24, 2017. The bids have been checked and tabulated. Heselton Construction from Faribault, Minnesota submitted the low bid in the amount of $697,164.32. The lowest bid was below the updated engineer’s estimate of $857,000. The bid summary is provided as fol- lows: COMPANY BID AMOUNT HESELTON CONSTRUCTION $697,164.32 NORTHDALE CONSTRUCTION $722,935.85 R & R EXCAVATING $746,787.30 R.L. LARSON EXCAVATING $753,770.40 MCNAMARA CONTRACTING $755,250.75 RYAN CONTRACTING $762,027.62 NORTWEST ASPHALT $797,857.25 GEISLINGER AND SONS $817,619.70 OMG MIDWEST INC. (DBA CHARD) $980,816.35 BITUMINOUS ROADWAYS $1,093,175.40 Conclusion Several bidders were looking for a small project like this project to round out their construction season. As such we had a large number of contractors interested in this project. Also because it was a smaller project, some smaller contractors were interested in the work. Staff recommends award of this project to Heselton Construction. While the City has not worked with Heselton Construction in the past they have a strong reputa- tion as a quality contractor. 3 ISSUES: Beginning construction in September is not standard for the City. However, con- sidering the recent mild fall seasons, work can be completed before the winter freeze. At a minimum, it can be expected that the utility work be completed and gravel restored for the winter. The City is in process of acquiring property at the intersection of Rolling Oaks Cir- cle and CSAH 42 for ponding and future extension of Bluebird Trail. Discussions with the property owner have been productive as we work through compensation and design. If the City is unable to reach agreement on the property, pond con- struction for the project would be delayed until 2018 after property acquisition has been completed. FINANCIAL IMPACT: The funding table below for the Rolling Oaks Circle Improvement Project shows contribution from the following sources: Assessments, Trunk Fund, Street oversize Fund, developer contribution, developer-paid deferred assessment, and the Water Quality Fund. There is no question that if financed in this manner this project will set a funding precedent for future projects. Construction Costs $697,164 Project Support Costs $187,240 Property Acquisition $ 67,200 Street Lighting $ 4,525 Total Cost $956,129 *Does not include optional hook-up charges included with the assessment Funding source amounts are shown for the original feasibility report and current option: Funding Source Original Amount Bid Amount* Assessments (Current) $819,431 $269,000 Street Oversize Fund $60,000 $67,200 Water Quality Fund $25,000 $112,000 Trunk Fund $8,000 $200,000 Developer Contribution $123,200 Developer Paid Deferred As- sessments $184,729 Project Total Cost* $912,431 $956,129 *The funding amounts shown were updated based on the low bid for the project but doesn’t include optional hook up charges of $58,941. ALTERNATIVES: 1. Approve a Resolution accepting bids and awarding the City’ Standardized Construction Contract to Heselton Construction for the Rolling Oaks Circle 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. 4 RECOMMENDED MOTION: Motion and 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 ROLLING OAKS CIRCLE IMPROVEMENT PROJECT (TRN13-000006) Motion By: Second By: WHEREAS, Pursuant to an advertisement for bids for the Rolling Oaks Circle Improvement Project (City Projects #TRN13-000006) 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 HESELTON CONSTRUCTION $697,164.32 NORTHDALE CONSTRUCTION $722,935.85 R & R EXCAVATING $746,787.30 R.L. LARSON EXCAVATING $753,770.40 MCNAMARA CONTRACTING $755,250.75 RYAN CONTRACTING $762,027.62 NORTWEST ASPHALT $797,857.25 GEISLINGER AND SONS $817,619.70 OMG MIDWEST INC. (DBA CHARD) $980,816.35 BITUMINOUS ROADWAYS $1,093,175.40 and; WHEREAS, Heselton Construction 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. Heselton Construction is the lowest responsible bidder. 3. The Mayor and City Manager are hereby authorized to enter into the City’s standard contract with Heselton Construction in the name of the City of Prior Lake for the Rolling Oaks Circle Improvement Projects (Projects # TRN13-000006) in the amount of $697,164.32. 2 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 table: Funding Source Amount Assessments (Current) $269,000 Street Oversize Fund $67,200 Water Quality Fund $112,000 Trunk Fund $200,000 Developer Contribution $123,200 Developer Paid Deferred Assessments $185,308 Project Total Cost* $956,708 6. Construction costs will be recorded in the Construction Fund (#501-43500.00-55050.00 TRN13-000006). 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. 9. Proceeds from the bond sale will be deposited in the Construction Fund. PASSED AND ADOPTED THIS 5TH DAY OF SEPTEMBER 2017. VOTE Briggs McGuire Thompson Braid Burkart Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager