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Home My WebLink About8A 2018 Reconstruction Accept Bids Report 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: APRIL 16, 2018 AGENDA #: 8A PREPARED BY: NICK MONSERUD, ASSISTANT CITY ENGINEER PRESENTED BY: NICK MONSERUD AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION ACCEPTING BIDS AND AWARD- ING THE CITY’S STANDARDIZED CONSTRUCTION CONTRACT FOR THE 2018 RECONSTRUCTION IMPROVEMENT PROJECT (TRN18-000001) DISCUSSION: Introduction The purpose of this agenda item is to ask the City Council to accept bids and award a construction contract for the 2018 Reconstruction Improvement Project. History The City uses the Five Year Capital Improvement Program and its Pavement Management program to plan its infrastructure improvements and the financing for capital improvements. The 2018 Improvement Project proposes to reconstruct the street and upgrade utilities in two separate areas of the City. These areas include Woodside Road, Huron Street, Wildwood Circle, Santee Circle and Luther Road (Woodside/Huron): Franklin Trail from Summer to CSAH 44. At its May 8, 2017 meeting the City Council adopted Resolutions 17-063 and 17-064 authorizing staff to prepare a Feasibility Report for the Woodside/Huron Neighborhood Street Im- provement Project and Franklin Trail 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. For bidding purposes the two project areas have been combined into one project. This was done to simplify the bidding process, better coordinate construction scheduling with one contractor, and to potentially receive lower bids due to the in- creased scale of the project. Franklin Trail: The Franklin Trail area includes improvements to Brooksville Hills 3rd Addition, Brooksville Hills 5th Addition, Brooksville Hills 6th Addition, Brooksville Hills 7th Addition and CIC Nos. 1072 located in Section 1, Township 114, Range 22. Struc- tures in this area were built between 1978-1999 but most were generally built in the 1980’s and early 1990’s. The proposed improvements include street recon- struction, storm sewer, storm water quality, sanitary sewer, watermain, concrete curb and gutter, and appurtenant work. On November 20, 2017, the City Council adopted Resolution 17-189 accepting the Feasibility Report and ordering the public hearing for the Franklin Trail Street Re- construction Project to be held on December 11, 2017. On December 11, 2017, the City Council held the Public Hearing and adopted 2 Resolution 17-211 ordering the improvement project. On March 19, 2018 the City Council approved the project plans, specifications and authorized the advertisement for bids for the 2018 Reconstruction Improvement Projects. 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 April 4, 2018 and offered residents the opportunity to comment on the proposed plans. It should be noted that no residents from Franklin Trail attended this meet- ing. Woodside/Huron Area: The Woodside/Huron area includes improvements to RLS 072, Oakwood Hills, and North Prior subdivisions located in Section 36, Township 115, Range 22. Structures in this area were built in the late 1960s and 1970s. The proposed im- provements include street reconstruction or reclamation, storm sewer, storm water quality, sanitary sewer, watermain, concrete curb and gutter, and appurtenant work. On November 20, 2017, the City Council adopted Resolution 17-190 accepting the Feasibility Report and ordering the public hearing for the Woodside/Huron Neigh- borhood Street Improvement Project to be held on December 11, 2017. On December 11, 2017, the City Council held the Public Hearing and adopted Resolution 17-208 ordering the improvement project. On March 19, 2018 the City Council approved the project plans, specifications and authorized the advertisement for bids for the 2018 Reconstruction Improvement Projects. 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 April 4, 2018 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. Approximately ten residents attended the open house. Current Circumstances The City received a total of six (6) bids on April 4, 2018. The bids have been checked and tabulated. Heselton Construction, LLC. from Faribault, Minnesota submitted the low bid in the amount of $3,734,561.53. The lowest bid was below the updated engineer’s estimate of $3,887,062.50. The bid summary is provided as follows: COMPANY BID AMOUNT HESELTON CONSTRUCTION, LLC. $3,734,561.53 S.M. HENTGES & SONS, INC. $3,895,217.40 3 LATOUR CONSTRUCTION $3,958,002.30 NORTHWEST ASPHALT, INC. $3,967,701.69 GEISLINGER AND SONS, INC. $4,171,654.45 RYAN CONTRACTING COMPANY $4,253,612.55 Conclusion Staff and WSB recommends award of this project to Heselton Construction, LLC for both project areas. WSB has provided a recommendation letter and is included as part of this report. 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 As- sessment Review Workgroup recommends the unit method of assessment for the Woodside/Huron area 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 tax levy. The assessment amount will be revised once construction is substantially com- plete. The assessment hearing will take place in fall of 2018 after substantial completion of the improvement project. FINANCIAL IMPACT: The Woodside/Huron Neighborhood Street 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 below: WOODSIDE/HURON NEIGHBORHOOD STREET IMPROVEMENT PROJECT - FUNDING Tax Levy $899,358 Assessment (40%) $585,369 Utility Fund - Sewer $467,176 Utility Fund - Water $556,461 Water Quality Fund $347,831 Total $2,856,195 *Funding amounts listed above include indirect costs. The Capital Improvement Plan estimate for this project was $3,151,691. The Franklin Trail Area Improvement Project is proposed to be financed by Special Assessments, Tax Levy, Sewer Fund and Water Fund. The funding of each option and the corresponding estimated amounts are shown below: 4 FRANKLIN TRAIL AREA IMPROVEMENT PROJECT - FUNDING Tax Levy $861,459 Assessment (40%) $399,036 Utility Fund - Sewer $378,748 Utility Fund - Water $220,439 Total $1,859,682 *Funding amounts listed above include indirect costs. The Capital Improvement Plan estimate for this project was $2,319,317. ALTERNATIVES: 1. Approve a Resolution accepting bids and awarding the City’ Standardized Construction Contract to Heselton Construction, LLC. for the 2018 Reconstruc- tion 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 MOTION: Alternative #1. 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 18-___ A RESOLUTION ACCEPTING BIDS AND AWARDING THE CITY’S STANDARDIZED CONSTRUCTION CONTRACT FOR THE 2018 RECONSTRUCTION IMPROVEMENT PROJECT (TRN18-000001) Motion By: Second By: WHEREAS, Pursuant to an advertisement for bids for the 2018 Reconstruction Improvement Projects (City Project #TRN18-000001) 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 HESELTON CONSTRUCTION, LLC. $3,734,561.53 S.M. HENTGES & SONS, INC. $3,895,217.40 LATOUR CONSTRUCTION $3,958,002.30 NORTHWEST ASPHALT, INC. $3,967,701.69 GEISLINGER AND SONS, INC. $4,171,654.45 RYAN CONTRACTING COMPANY $4,253,612.55 and; WHEREAS, Heselton Construction, LLC. 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, LLC 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, LLC in the name of the City of Prior Lake for the 2018 Reconstruction Improvement Project (Project # TRN18-000001) in the amount of $3,734,561.53. 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 Woodside/Huron Neighborhood: WOODSIDE/HURON NEIGHBORHOOD STREET IMPROVEMENT PROJECT - FUNDING Tax Levy $899,358 Assessment (40%) $585,369 Utility Fund - Sewer $467,176 Utility Fund - Water $556,461 Water Quality Fund $347,831 Total $2,856,195 Franklin Trail: FRANKLIN TRAIL AREA IMPROVEMENT PROJECT - FUNDING Tax Levy $861,459 Assessment (40%) $399,036 Utility Fund - Sewer $378,748 Utility Fund - Water $220,439 Total $1,859,682 6. Construction costs will be recorded in the Construction Fund (#501-43500.00-55050.00 TRN18- 000001) for the 2018 Reconstruction 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 2018. 9. Proceeds from the bond sale will be deposited in the Construction Fund. PASSED AND ADOPTED THIS 16TH DAY OF APRIL 2018 VOTE Briggs McGuire Thompson Braid Burkart Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager C:\Users\elueth\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\B0S34K75\R-010344-000 Bid Tab Summary-040618 (002).xlsx PROJECT: 2018 Street Reconstruction Project OWNER: City of Prior Lake Project No. TRN 18-000001 WSB PROJECT NO.: R-010344-000 Bids Opened: April 4, 2018, 11:00 a.m. Contractor Addendum No. 1 Bid Security (5%)Grand Total Bid 1 Heselton Construction, LLC X X $3,734,561.53 2 S.M. Hentges & Sons, Inc.X X $3,895,217.40 3 LaTour Construction X X $3,958,002.30 4 Northwest Asphalt, Inc.X X $3,967,701.69 5 Geislinger and Songs, Inc.X X $4,171,654.45 6 Ryan Contracting Company X X $4,253,612.55 Engineer's Opinion of Cost $3,887,062.50 Denotes corrected figure Emily Lueth, PE Project Manager BID TABULATION SUMMARY I hereby certify that this is a true and correct tabulation of the bids as received on April 4, 2018. 701 Xenia Avenue South | Suite 300 | Minneapolis, MN 55416 | (763) 541-4800 Building a legacy – your legacy. Equal Opportunity Employer | wsbeng.com K:\010344-000\Admin\Construction Admin\R-010344-000 LOR-040618.docx April 6, 2018 Honorable Mayor and City Council City of Prior Lake 4646 Dakota Street SE Prior Lake, MN 55372 Re: 2018 Street Reconstruction Project City of Prior Lake Project No. TRN 18-000001 WSB Project No. R-010344-000 Dear Mayor and Council Members: Bids were received for the above-referenced project on Wednesday, April 4, 2018, and were opened and read aloud. Six bids were received. The bids were checked for mathematical accuracy and tabulated. Please find enclosed the bid tabulation indicating Heselton Construction, LLC, Faribault, Minnesota, as the low bidder with a grand total bid amount of $3,734,561.53. The Engineer’s Estimate for the project was $3,887,062.50. We recommend that the City Council consider these bids and award a contract for the grand total bid in the amount of $3,734,561.53 to Heselton Construction, LLC based on the results of the bids received. If you have any questions, please contact me at 763-762-2843. Sincerely, WSB & Associates, Inc. Emily Lueth, PE Project Manager Enclosures cc: Frank Boyles, City of Prior Lake Jason Wedel, City of Prior Lake Mike Heselton, Heselton Construction, LLC ar