HomeMy WebLinkAbout9B Duluth Intersection Engineering Contract Amendment Report4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE:
AGENDA #:
PREPARED BY:
PRESENTED BY:
AGENDA ITEM:
GOAL AREA AND
OBJECTIVE:
DISCUSSION:
SEPTEMBER 17, 2018
9B
FRANK BOYLES, CITY MANAGER
FRANK BOYLES
CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE MAYOR
AND CITY MANAGER TO AMEND THE CONTRACT FOR ENGINEERING
AND CONSTRUCTION SERVICES FOR THE DULUTH AVENUE INTERSEC-
TION IMPROVEMENT PROJECT (CITY PROJECT #TRN15-000003)
Transportation & Mobility
5. Focus on key corridors that take advantage of collaboration with state and
county projects.
Introduction
The purpose of this agenda item is to ask the City Council to consider approval
of a contract amendment for engineering services for the Duluth/TH13 Improve-
ment Project due to changes in the scope of the work.
History
The City sent out a Request for Proposal (RFP) for the Duluth/TH13 project in
2014. Multiple proposals were received and evaluated based on the value of
services, the consultants approach and understanding of the project, consultant’s
experience and qualifications, consultant’s ability to provide the required ser-
vices, and the consultant’s prior experience with the City. Based on these crite-
ria, the contract was awarded to WSB & Associates at the September 8, 2014
City Council meeting.
The original scope of the project was solely for improvements to the intersection
of TH13 and Duluth Avenue. WSB was contracted to provide preliminary engi-
neering, design services and construction observation. The total estimated pro-
ject cost at that time was $850,000, including construction. A feasibility report
was prepared, accepted and the project was ordered by the City Council on Jan-
uary 26, 2015. WSB then proceeded with preparing the construction documents.
At the February 23, 2015 City Council meeting the Council directed staff to delay
the bidding of the project until 2016 due to tax levy impacts.
However, the City continued to complete the design and start the right of way ac-
quisition process. During the design there was a significant amount of interaction
with the local businesses including the Lunds/Byerlys and Holiday Station stores.
Multiple design options were prepared and brought to the City Council for consid-
eration. These design iterations were not included in the original scope of ser-
vices with WSB.
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On November 9, 2015, due to projected tax levy impacts, the City Council di-
rected staff to push the project out four or five years into the future. At this point
all work was halted by WSB.
The Duluth project was re-opened on April 24, 2017 when the City Council au-
thorized moving the Duluth/TH13 project back into the Capital Improvement Plan
(CIP) for construction in 2019 and authorized WSB to prepare an application, on
behalf of the City, to MnDOT for Cooperative Agreement funding for the project.
This work was not included in the original scope of services. At that time costs for
services the city had received amounted to approximately $137,000.
A project update was presented to the City Council at a work session on August
7, 2017. The discussion at the work session included adding a roundabout to the
intersection of Duluth and Village Lake Drive, realigning the Toronto and Village
Lake Drive intersection, revising the original feasibility study to include assess-
ments as part of the overall funding of the project, and moving the project to
2018 for construction. None of these changes to the project were included in the
original scope of services with WSB.
On December 4, 2017 the City Council was notified at a work session that the
City’s application to MnDOT was successful and that the City would be receiving
$710,000 in Cooperative Agreement funds. The City was also encouraged by
MnDOT to get the improvements completed in 2018 prior to the full depth recla-
mation and subsequent closure of TH13 in 2019.
To facilitate construction in 2018 and use of MnDOT’s funding, the City had to
follow MnDOT’s plan development and approval process which requires all right-
of -way to be secured before the final plans will be approved. This schedule re-
quired an expedited project development process.
A revised feasibility report was approved by the City Council on February 5,
2018. The Public Hearing was held on March 5, 2018 and the project was or-
dered to move forward. Construction plans were then prepared that included all
of the various additions to the project including the mini roundabout, the realign-
ment of Toronto, the addition of a right turn lane into the Holiday Station store,
and numerous other modifications.
Included with these modifications was the need to negotiate and acquire addi-
tional right-of-way to accommodate the plan changes. The plans were approved
by the City Council on July 16, 2018 and authorization to advertise for bids was
granted. Bids were opened on August 8, 2018 and the City received two bids
with the low bid being $733,919.40 over the Engineer’s estimate. The bids were
ultimately rejected by the City Council on August 20, 2018.
Current Circumstances
Starting in 2015, the contract with WSB has not been amended to include the
changes to the project scope nor the timeline. Due to the extremely tight time
frame in which the City had to complete construction documents in an effort to
complete the project in 2018, the focus was spent on completing the necessary
engineering work and not amending the contract. The additional work tasks as-
signed to WSB include the following:
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• Drone footage
• MnDOT Cooperative Agreement funding application
• Update feasibility report
• Mini roundabout
o Roundabout Justification Report
o Additional survey
o Design
o Lighting
o Right-of-way
o Utility relocation
o Traffic control for full closure of intersection
o Additional soil borings
• Street lighting
• Right turn lane for Holiday
• Sanitary sewer relocation
• Update specifications from 2015 MnDOT specifications to 2018
• Update Signal Justification Report (SJR) as required by MnDOT to meet
2018 standards for TH13/Duluth intersection
• Re-apply for all permits including watershed, MPCA, Dept. of Health, etc.
Conclusion
Due to all of the changes that were required due to the project being delayed
three years, a significant portion of the work that was completed in 2015 could
not be re-used. It is therefore necessary to approve an amended agreement with
WSB for the additional work that was completed.
ISSUES: Typically the City Council would be asked to consider a contract amendment
prior to the actual work being completed. However, the City was in a unique situ-
ation with this project as a result of WSB successfully applying for and receiving
$710,000 in MnDOT Cooperative Agreement funds with the intent of constructing
the improvements in 2018.
WSB was authorized by the City to begin working on the project again in January
2018. This included updating the feasibility report, holding a public hearing, pre-
paring the construction documents, obtaining all of the right-of-way and receiving
MnDOT review and approval of the plans. That was an extremely tight time
frame. Ideally the City would be advertising for bids in January, not starting on it.
In an effort to meet the schedule, all of WSB’s resources as well as city staff
were spent on advancing the project and not on preparing a contract amend-
ment.
FINANCIAL
IMPACT:
The original contract with WSB approved by the City Council in 2015 was for
$186,737. The portion of the budget that was spent between 2015 and 2017 is
$136,999.50. The City Council acknowledged that much of the previous expend-
itures for this project was for work that could not be reused or for work that was
outside of the original scope of services. At the May 8, 2017 City Council meet-
ing the City Council authorized using funds that were available after the Mush-
town/Maple/Panama reconstruction project was completed to offset the past Du-
luth/TH13 expenditures. Resolution 17-060 authorized a transfer of $104,439.75
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to the Duluth project. The outstanding balance was reduced to $32,559.75 as a
result.
The City received an updated proposal from WSB for the Duluth/TH13 project in
August 2018. The updated scope of work includes the following items:
• Preliminary Design, MnDOT Layout Development & Feasibility Report
o Project Management
o Preliminary Layout Development
o Feasibility Report
o Meetings
o Design Surveys
• Final Design and Preparation of Construction Plans
o Intersection Justification (Signal and Roundabout)
o Geotechnical Evaluation
o Utility Coordination
o Final Design
• Landscape Design
• MnDOT Plan Review and Approval
• Specifications
• Cost Estimates
• Permitting
• Bidding
• Right of Way Acquisition
o Project Management
o Acquisition Services
• Construction Services
o Contract Administration
o Construction Staking
o Construction Inspection
o Material Testing
o Record Drawings
The cost for this work is $338,862.00. Incorporating this engineering cost, the to-
tal project cost can be broken down as follows:
Right-of-Way Acquisition $ 268,480.00
Engineering $ 338,862.00
Previous Engineering Balance $ 32,559.75
Construction $1,672,097.60
Total $2,311,999.35
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
original funding for the project is shown below:
Special Assessments $ 163,025.00
Tax Levy $ 906,975.00
MSAS (State Aid) $ 400,000.00
MnDOT $ 710,000.00
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Total $2,180,000.00
Incorporating the engineering contract amendment, the budget will need to be in-
creased by $131,999.35. Staff is recommending that the portion of the project
being funded through the City’s MSAS account be increased from $400,000 to
$531,999.35 to cover the additional cost.
When reviewing the City’s 5-year Transportation Plan there is adequate funding
in the City’s MSAS account to cover the additional cost.
To provide some perspective on the engineering costs associated with this pro-
ject, it is typical for engineering costs to range between 20 – 25% of the esti-
mated construction costs. For example, in the City’s cost share agreements with
the SMSC, the engineering costs are calculated using 25% of the construction
costs.
Using this formula with the current construction cost estimate of $1,672,097.60
provides a range of $334,419.52 to $418,024.40 for engineering services. WSB’s
proposed contract amendment of $338,862 plus the outstanding balance from
the 2015 engineering work of $32,559.75 is $371,421.75, which is in the middle
of this range at 22% of the estimated construction costs.
WSB’s actual costs are higher than what is currently included in their proposal.
They acknowledge that it is unusual to ask the City to approve a contract amend-
ment after much of the work has already been completed. They therefore ab-
sorbed approximately $47,000 in expenses that have already been incurred in an
effort to demonstrate good faith with the City.
ALTERNATIVES: 1. Approve a Resolution amending the contract for engineering and construc-
tion services 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 AUTHORIZING THE MAYOR AND CITY MANAGER TO AMEND THE CONTRACT
FOR ENGINEERING AND CONSTRUCTION SERVICES FOR THE DULUTH AVENUE INTERSECTION
IMPROVEMENT PROJECT (CITY PROJECT #TRN15-000003)
Motion By: Second By:
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
The intersections of Duluth and TH13, Toronto and Village Lake Drive and Duluth and
Village Lake Drive are critical to the city’s transportation system for access and egress to
significant business, service and residential sectors of the city; and,
As such the improvements to these corridors has been contemplated since 2015 and the
project has been expanded considerably to include a roundabout, realignment of the
Toronto/Village Lake Drive Intersection, adding a right in at Holiday Gas Station and
redrafting of the feasibility study to include special assessments; and,
The project cost has also been impacted by the addition of MNDOT funding requiring a
considerable number of additional engineering requirements, project bidding twice and
three years of project delay which have increased project costs; and,
The original 2015 contract with WSB was $186,737 of which $136,999.50 was spend for
work that could not be reused due to project revision s; and,
Revised project costs for engineering services is $338,862; and,
Revised costs for the project and funding sources are set forth below:
Project Cost Project Funding
ROW Acquisition $268,480.00 Spec. Assessments $163,025.00
Engineering $338,862.00 Tax Levy $906,975.00
2015-17 Balance $32,559.75 MSAS (State Aid) $531,999.35
Construction $1,672,097.60 MnDOT $710,000.00
TOTAL $2,311,999.35 TOTAL $2,311,999.35
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.WSB is hereby authorized to provide engineering services for the Duluth Avenue Improvement Project
based upon the amended budget shown herein. These services will include preliminary engineering,
design, and construction services.
3.WSB is authorized to proceed with services for Duluth Avenue.
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4.The Mayor and City Manager are authorized to execute an amendment to the City’s Standardized
Professional Services Agreement with WSB on behalf of the City.
5.Funding for these engineering services will be drawn from the Construction Fund Accounts #501-.
PASSED AND ADOPTED THIS 17th DAY OF SEPTEMBER 2018.
VOTE Briggs McGuire Thompson Braid Burkart
Aye ☐ ☐ ☐ ☐ ☐
Nay ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
Abstain ☐☐ ☐ ☐ ☐
______________________________
Frank Boyles, City Manager