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Home My WebLink About8A TH13 - Duluth Reject Bids Report 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: AUGUST 20, 2018 AGENDA #: 8A PREPARED BY: JASON WEDEL, PUBLIC WORKS DIRECTOR/CITY ENGINEER PRESENTED BY: JASON WEDEL AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION REJECTING BIDS AND AU- THORIZING THE PUBLIC WORKS DIRECTOR TO RE-ADVERTISE FOR BIDS FOR THE 2019 DULUTH AVENUE INTERSECTION IMPROVEMENT PROJECT (CITY PROJECT #TRN15-000003) DISCUSSION: Introduction The purpose of this agenda item is to ask the City Council to reject bids and au- thorize the Public Works Director to re-advertise for bids in early 2019 for spring construction of the Duluth Avenue intersection improvements. History A feasibility report was originally prepared for the Duluth Avenue Intersection Im- provement project in January 2015. The feasibility report was accepted and the project was ordered by the City Council on January 26, 2015. However, due to projected tax levy impacts, the project construction was delayed. Due to additional State funding becoming available, the feasibility report was up- dated in 2018. The updated report included assessments to adjacent properties that will benefit from the proposed improvements as part of the overall financing of the project. The revised feasibility report was approved by the City Council on February 5, 2018 and the public hearing was held on March 5, 2018. At the con- clusion of the public hearing the City Council approved a resolution ordering the updated project and the preparation of plans and specifications. The Duluth Avenue Intersection Improvement Project includes widening the inter- section to include dedicated left, thru, and right turn lanes on Duluth Avenue in both directions at the intersection with TH13. It also includes the addition of a right turn lane into the Holiday Station Store’s northerly entrance, the construction of a median on Duluth Avenue to restrict the access to the entrance for the Village Lake Mall to right-in/right-out near the intersection, the construction of a mini roundabout at the intersection of Duluth and Village Lake Drive, as well as modifi- cations to several of the southerly entrances to the Village Lake Mall property and the realignment of the Toronto/Village Lake Drive intersection. The final plans were approved by the City Council on July 16, 2018 and authorization for advertis- ing for bids was granted. Current Circumstances The City received a total of two (2) bids on August 2018. The bids have been checked and tabulated. Ryan Contracting Company submitted the low bid in the amount of $2,406,017.00. The lowest bid was well above the engineer’s estimate of $1,672,097.60. The bid summary is provided as follows: 2 COMPANY BID AMOUNT RYAN CONTRACTING COMPANY $2,406,017.00 EUREKA CONSTRUCTION, INC. $2,536,384.33 ENGINEER’S ESTIMATE $1,672,097.60 Conclusion The low bid is $733,919.40 above the Engineer’s Estimate. Staff and WSB recom- mends rejection of these bids. There was little interest in this project due to the amount of work most contractors already have for 2018 and they simply do not have the capacity to take on additional projects. The evidence for this is that the City only received two bids for a project of this size and the lowest bid is 44% over the Engineer’s Estimate. We also spoke with several other contractors who did not bid and they stated they already have more than enough work for 2018. ISSUES: By delaying the project and rebidding in early 2019, no work will be done this fall. The original plan was to get this project completed in the fall of 2018 in advance of the TH13 project and subsequent closure next year. However, that will no longer be the case. Staff will work diligently with both MnDOT and Scott County staff to develop a con- struction schedule that will reduce the impact of this schedule change with the lo- cal businesses in the Village Lake area. The proposed construction staging for TH13 next year involves starting at the southern limits and working north in short segments. The segment of TH13 at Duluth is not scheduled for construction until late June or early July. The intent will be to start the construction of Duluth Ave- nue in mid-April, weather permitting, and be substantially complete with the con- struction prior to that segment of TH13 being closed. FINANCIAL IMPACT: The City is receiving $710,000 in Cooperative Agreement funds from MnDOT for this project. City staff have confirmed with MnDOT officials that re-bidding this project in early 2019 for construction next year will not impact those funds. The proposed funding for the project will therefore remain the same as shown below: Special Assessments $163,025 Tax Levy $906,975 MSAS (State Aid) $400,000 MnDOT $710,000 Total $2,180,000 As part of the right of way acquisition for this project there were several temporary easements that were tied to specific dates for when construction would occur. Those temporary easements will need to be modified if the project is delayed. Any cost, if any, with renegotiating those temporary easements will be brought back to the City Council. 3 There is a potential benefit to rebidding this project next year. If the timing of the bids can be coordinated with the TH13 reclaim project as well as the CR21/TH13 intersection project there could be an incentive to a contractor to try to get all three projects and there by aggressively bid the projects since they are located in the same proximity. ALTERNATIVES: 1. Approve a Resolution rejecting bids and authorizing the Public Works Director to re-advertise for bids in early 2019 for the Duluth Intersection Improvement Project (City Project #TRN15-000003). 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 18-___ A RESOLUTION REJECTING BIDS AND AUTHORIZING PUBLIC WORKS DIRECTION TO RE-ADVERTISE FOR BIDS IN 2019 FOR THE DULUTH AVENUE INTERSECTION IMPROVEMENT PROJECT (TRN15-000003) Motion By: Second By: WHEREAS, Pursuant to an advertisement for bids for the Duluth Intersection Improvement Project (City Project #TRN15-000003) 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 RYAN CONTRACTING COMPANY $2,406,017.00 EUREKA CONSTRUCTION, INC. $2,536,384.33 and; WHEREAS, WHEREAS, The engineer’s estimate was $1,672,097.60; and The low bid is 44% over the engineer’s estimate. 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 reject all bids and authorize the Public Works Director to re-advertise for bids for the Duluth Avenue Intersection Improvement Project (Project #TRN15-000003). 3. The City Manager is hereby authorized and directed to return to all bidders the deposits that accompanied their respective bids. PASSED AND ADOPTED THIS 20TH DAY OF AUGUST 2018. VOTE Briggs McGuire Thompson Braid Burkart Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager