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HomeMy WebLinkAbout5I 2018 Mill and Overlay Bid Award Report Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: JUNE 4, 2018 AGENDA #: 5I PREPARED BY: JASON WEDEL, PUBLIC WORKS DIRECTOR/CITY ENGINEER PRESENTED BY: JASON WEDEL AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION ACCEPTING BIDS AND AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE THE CITY’S STANDARDIZED CONSTRUCTION CONTRACT FOR THE 2018 STREET OVERLAY PROJECT AND CONCRETE REPAIRS DISCUSSION: Introduction The purpose of this agenda item is to accept the bids and authorize the Mayor and City Manager to execute the City’s Standardized Construction Contract with GMH Asphalt Corporation. History On December 4th 2017 City Council adopted Resolution 17-198 authorizing staff to prepare a Feasibility Report for the 2018 Overlay Improvement Project, which is the first step in the MS 429 process. On, February 5, 2018 City Council accepted the Feasibility Report and scheduled a Public Hearing. The Public Hearing was held on April 16, 2018. That same evening, the construction plans and specifications were approved and the City Council authorized staff to advertise for bids. The assessment hearing will be held later this fall in either September or October. Current Circumstances Streets to be Overlaid in 2018 as Identified in Feasibility Study Carriage Hill Pkwy NE East of Pike Lake Trl NE to End Dove Ct Carriage Hill Pkwy to End Dove Ct Carriage Hill Pkwy to New Development Raven Circle Carriage Hill Pkwy to End Raven Court Carriage Hill Pkwy to New Development Nightingale Cl Carriage Hills Pkwy to End Hidden View Rd Shady Beach Tr to Bayview Circle Greenway Ave 140th St to Conroy St Fish Point Rd Hwy 13 to Fairlawn Shortes Trl Fairlawn Shores Tr Fish Point Rd to 150th St Priorwood St SE Duluth Ave to Five Hawks Ave Tranquility Ct Priorwood St to End Center Rd North Wood Rd to Lime Rd Lime Rd CR 12 to End Terrace Circle Center Rd to End Westbury Ave Willowwood St to Kestrel St Kestrel St Westbury Ave to Simpkins Ave 2 Cross St Westbury Ave to Simpkins Ave Simpkins Ave Kestrel St to Willowwood Peregrine Circle Willowwood St to End Willowwood Circle Willowwood St to End Simpkins Circle Willowwood St Simpkins Dr Willowwood St Willow Ln to Five Hawks Ave An advertisement for bid was published in both the Prior Lake American and E-Advertising with bids being due and opened on May 23, 2018. The City received 7 bids which are listed in the chart below. Company Address Total GMH Asphalt Chaska $589,410.19 Wm. Mueller & Sons Hamburg $597,122.15 McNamara Contracting Rosemount $599,999.73 Chard Belle Plain $609,824.20 Northwest Asphalt Shakopee $634,242.00 Bituminous Roadways Mendota Heights $667,092.30 Midwest Asphalt Services Eden Prairies $787,417.20 The Engineering Estimate for this project was $630,000. Conclusion Staff is recommending awarding the construction contract to the lowest responsible bidder, GMH Asphalt in the amount of $589,410.19. ISSUES: This is the second pavement overlay project that will be completed under the revised City Assessment Policy. Per the Assessment Policy (fee schedule), the assessment rate in 2018 for street overlay project is $1,200 for single family and $960 for multifamily (0.8 X $1,200). Commercial and industrial parcels are assessed based on the Residential Equivalent Density (RED). The assessment rate will be adjusted annually with an escalator based on the Construction Cost Index (CCI). The assessment period is over 5-years. Based on the age of the City’s existing streets, the City is entering a time period where more streets are in need of timely mill and overlay projects to extend their useful lives. The previous method of funding these projects put pressure on the tax levy. Utilizing special assessments and the PIR Fund for overlay projects allows the City to complete four miles of street mill and overlay projects annually as compared to two miles completed in prior year. FINANCIAL IMPACT: The 2018 Mill and Overlay Project is proposed to be financed by Special Assessments and a transfer from the General Fund to the Permanent Revolving (PIR) Fund. Based on the low bid of $589,410.19 and proposed special assessments of $482,306.40 the remaining balance of $107,103.79 will come from the General Fund transfer. The approved 2018 Capital Improvement Program and Budget contemplated $650,000 in the newly created PIR Fund for this project. 3 General Fund Transfer $107,103.79 Assessments $482,306.40 Total $589,410.19 The overlay project will have an annual tax impact of $150,000 - $210,000. This is the amount that was levied in the General Fund Streets department in prior years. The PIR Fund allows the City more flexible use of revenues from special assessments. For the City’s annual street mill and overlay projects financed with PIR Bonds the revenues can be used for any authorized purpose of the PIR Fund. For example, special assessments collected from a previous improvement could be used to provide upfront funding for future improvements. PIR Fund Bonds are secured by revenues of the Fund and not solely by the special assessments of the financed improvements. It is anticipated that over time the fund will be self-sustaining. Until we develop special assessment prepayment history, we anticipate that the City will bond for the special assessment portion, levy or transfer funds for a portion of the costs and fund the remainder with prepayments of special assessments collected from prior year(s) improvements. ALTERNATIVES: 1. Motion and a second as part of the consent agenda to approve the resolution which accepts the bids and authorizes the Mayor and City Manager to execute the City’s Standardized Construction Contract with GMH Asphalt Corporation for the 2018 Street Overlay Project and concrete repairs. 2. Remove this item from the consent agenda for additional discussion. RECOMMENDED MOTION: Alternative #1 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 18-___ A RESOLUTION ACCEPTING BIDS AND AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE THE CITY’S STANDARDIZED CONSTRUCTION CONTRACT FOR THE 2018 STREET OVERLAY PROJECT Motion By: Second By: WHEREAS, The City of Prior Lake is committed to improving the streets within the City by providing continued maintenance; and WHEREAS, Continued maintenance of City streets will reduce the need of costly reconstruction in the near future; and WHEREAS, A total of 7 bids were received for the identified improvements as follows: GMH Asphalt $589,410.19 Wm. Mueller & sons $597,122.15 McNamara Contracting $599,999.73 Chard $609,824.20 Northwest Asphalt $634,242.00 Bituminous Roadways $667,092.30 Midwest Asphalt Services $787,417.20 WHEREAS, GMH Asphalt is the lowest responsible bidder in the amount of $589,410.19. 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. The Mayor and City Manager are hereby authorized to evecute the City’s Standardized Construction Contract for the identified streets overlays with GMH Asphalt for an estimated cost of $589,410.19. The funds will be drawn from the Permanent Improvement Revolving (PIR) Fund 450. Construction contract expenditures will be charged to 450-43100.00- 54010.01. Passed and adopted by the Prior Lake City Council this 4th day of June, 2018 VOTE Briggs McGuire Thompson Braid Burkart Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager