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Home My WebLink About5E 2019 Fish Point Road Reclamation Accept Bids Report 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: MARCH 18, 2019 AGENDA #: 5E 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 2019 FISH POINT ROAD RECLAMATION PROJECT (TRN19-000003) GOAL AREA AND OBJECTIVE: Transportation & Mobility 1. Maintain quality local street system based on a financially stable plan that meets Overall Condition targets. DISCUSSION: Introduction The purpose of this agenda item is to ask the City Council to accept bids and award a construction contract for the 2019 Fish Point Road Reclamation 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 section of Fish Point Road from County Road 21 south to Fawn Meadows Curve is part of the plan for reclamation in 2019. At its October 15, 2018 meeting the City Council adopted Resolution 18-166 authorizing staff to prepare a Feasibility Report for the Fish Point Road Reclamation Project as out- lined in the CIP. The primary purpose for proceeding with the project is to upgrade the street condition. The pavement condition is poor and requires reconstruction in accordance with the City’s desire to maintain high overall condition index (OCI) ratings on its roadways. The Fish Point Road Reclamation Project is considered in the report and includes a full depth pavement reclamation from County Road 21 south to Fawn Meadows Curve located in Section 1, Township 114, Range 22. This segment of Fish Point Road was built in 1994. The proposed improvements include full depth pavement reclamation, spot curb replacement, replacement of the existing bituminous trail, and ADA improvements at the existing curb ramps. The M.S. Chapter 429 process applies to all projects that will be financed in whole or part through special assessments or bond proceeds. At its December 17, 2018 meeting the City Council adopted Resolution 18-203 ac- cepting the Feasibility Report and ordering the public hearing for the Fish Point Road Reclamation Project. At its January 22, 2019 meeting the City Council conducted a public hearing and adopted Resolution 19-010 ordering the preparation of plans and specifications for the Fish Point Road Reclamation Project. 2 At its February 4, 2019 meeting the City Council adopted Resolution 19-025 ap- proving the plans and specifications for the Fish Point Road Reclamation Project and authorizing the advertisement for bids. In addition to the Public Hearing, City staff has contacted each of the three proper- ty owners within the project area to provide an opportunity to discuss the project in an informal setting. Staff provided an update on the proposed improvements, pro- ject costs, estimated assessments and answered general questions regarding the project. Current Circumstances The City received a total of seven (7) bids on March 8, 2019. The bids have been checked and tabulated. GMH Asphalt Corporation from Chaska, Minnesota sub- mitted the low bid in the amount of $388,714.14. The lowest bid was within 5% of the engineer’s construction estimate of $370,277.00. The bid summary is provid- ed as follows: COMPANY BID AMOUNT GMH ASPHALT CORPORATION $388,714.14 MCNAMARA CONTRACTING $390,801.50 NORTHWEST ASPHALT, INC. $394,656.91 PARK CONSTRUCTION $415,405.20 HARDDRIVES, INC. $439,875.10 VALLEY PAVING, INC. $467,901.65 BITUMINOUS ROADWAYS, INC. $548,180.20 Conclusion Staff recommends award of this project to GMH Asphalt Corporation. ISSUES: Pursuant to the Assessment Policy, the street reclamation should be assessed at up to 40% of the total project cost against the benefiting properties. As been in past practice in commercial areas, the Assessment Review Workgroup recom- mends the area method of assessment. The remaining amounts should be recov- ered 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 2019 after substantial com- pletion of the improvement project. FINANCIAL IMPACT: The Fish Point Road Reclamation Project is proposed to be financed by Special Assessments and Tax Levy. The funding of each option and the corresponding estimated amounts are shown below: 3 FISH POINT ROAD RECLAMATION TOTAL PROJECT - FUNDING Tax Levy $321,290 Assessment (40%) $124,520 Assessment (Per Acre) – $6,580 Total $445,810 The Capital Improvement Plan estimate for this project was $636,000 with the Tax Levy component being $572,000 so we are well under budget. ALTERNATIVES: 1. Approve a Resolution accepting bids and awarding the City’ Standardized Construction Contract to GMH Asphalt Corporation for the 2019 Fish Point Road Reclamation Project as part of the consent agenda. 2. Remove this item from the consent agenda for further discussion. RECOMMENDED MOTION: A motion and a second for approval of Alternative #1. 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 19-___ A RESOLUTION ACCEPTING BIDS AND AWARDING THE CITY’S STANDARDIZED CONSTRUCTION CONTRACT FOR THE 2019 FISH POINT ROAD RECLAMATION PROJECT (TRN19-000003) Motion By: Second By: WHEREAS, Pursuant to an advertisement for bids for the 2019 Fish Point Road Reclamation Project (City Project #TRN19-000003) which includes full depth pavement reclamation, spot curb replacement, replacement of the existing bituminous trail, ADA improvements at the existing curb ramps, 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 GMH ASPHALT CORPORATION $388,714.14 MCNAMARA CONTRACTING $390,801.50 NORTHWEST ASPHALT, INC. $394,656.91 PARK CONSTRUCTION $415,405.20 HARDDRIVES, INC. $439,875.10 VALLEY PAVING, INC. $467,901.65 BITUMINOUS ROADWAYS, INC. $548,180.20 and; WHEREAS, GMH Asphalt Corporation 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. GMH Asphalt Corporation is the lowest responsible bidder. 3. The Mayor and City Manager are hereby authorized to enter into the City’s standard contract with GMH Asphalt Corporation in the name of the City of Prior Lake for the 2019 Fish Point Road Reclamation Project (Project # TRN19-000003) in the amount of $388,714.14. 4. The City Manager is hereby authorized and directed to return to all bidders the deposits that accompanied their respective bids. 2 5. The City has previously made a declaration of official intent (”Declaration”) to reimburse certain estimated costs for this project from proceeds of bonds in Resolution 19 -018. 6. The City Council authorizes funding for these projects as shown in the following table: FISH POINT ROAD RECLAMATION PROJECT - FUNDING Tax Levy $321,290 Assessment (40%) $124,520 Assessment (Per Acre) – $6,580 Total $445,810 7. Construction costs will be recorded in the Construction Fund (#501-43500.00-55050.00 TRN19- 000003) for the 2019 Fish Point Road Reclamation Project. 8. The City Council authorizes the intent to issue General Obligation Bonds for this project. 9. The City Council authorizes an inter-fund loan from the Water Fund if necessary, to provide interim funding until additional bonds are issued in 2019. 10. Proceeds from the bond sale will be deposited in the Construction Fund. PASSED AND ADOPTED THIS 18TH DAY OF MARCH 2019. VOTE Briggs Thompson Braid Burkart Erickson Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Michael Plante, City Manager