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Home My WebLink About5F 2019 Overlay Award Bid ReportPhone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com 4646 Dakota Street SE Prior Lake, MN 55372 MEETING DATE: AGENDA #: PREPARED BY: CITY COUNCIL AGENDA REPORT MARCH 18, 2019 5F JASON WEDEL, PUBLIC WORKS DIRECTOR 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 2019 MILL AND OVERLAY IMPROVEMENT PROJECT (STR19-000001) 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 accept the bids and authorize the Mayor and City Manager to execute the City’s Standardized Construction Contract with McNamara Contracting. History On November 5, 2018 City Council adopted Resolution 18-173 authorizing staff to prepare a Feasibility Report for the 2019 Overlay Improvement Project which is the first step in the MS 429 process. On December 17, 2018 City Council accepted the Feasibility Report and scheduled a Public Hearing. The Public Hearing was held on January 22, 2019. On February 4, 2019, the construction plans and specifications were approved and the City Council authorized staff to advertise for bids. The Assessment Hearing for this project will be held later this fall in either September or October. Current Circumstances Streets to be Overlaid in 2019 as Identified in Feasibility Study Pike Lake Trail CSAH 42 Carriage Hills Parkway Fountain Hill Drive Pike Lake Trail End Fountain Hills Court Fountain Hills Drive End Robin Road Pike Lake Trail Hummingbird Trail Hummingbird Trail Pike Lake Trail Bluebird Trail Bluebird Trail Carriage Hills Parkway End Partridge Court Bluebird Trail End Seagull Circle Robin Road End Hummingbird Court Hummingbird Trail End Regal Pass NW Jeffers Pass End Jeffers Pass CSAH 21 Fairway Heights Rd Majestic Lane Jeffers Pass End An advertisement of bid was published in both the Prior Lake American and on Quest CDN with bids being due and opened on March 6, 2019. The City received seven (7) bids which are listed in the chard below. Company Total McNamara Contracting $716,880.80 GMH Asphalt $720,740.23 Valley Paving $752,971.10 Park Construction $771,525.90 Northwest Asphalt $781,818.30 Bituminous Roadways $798,989.00 Midwest Asphalt $857,211.00 The Engineering Estimate for the project was $800,000. Conclusion Staff is recommending awarding the contract to the lowest responsible bidder which is McNamara Contracting. ISSUES: Per the Assessment Policy (fee schedule), the assessment rate for 2019 for the street overlay project is $1,266 for single family and $1,013 for multifamily (0.8 X $1,266). 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 project to extend their useful lives. The previous method of funding these projects put pressure on the tax levy. FINANCIAL IMPACT: The 2019 Mill and Overlay Project is proposed to be financed by Special Assessments, tax levy and PIR Fund reserves. The total cost was budgeted at $700,000 which includes $439,900 in special assessments and the remaining funding of $260,100 coming from tax levy and PIR fund reserves. The project as shown in the feasibility study was estimated at $800,000 which was over budget. The scope of the project was purposely set to be over the budget in the event that the City received better than expected bids and could get more work completed. Since assessments are being utilized, per State Statute notification requirements, the project scope could be reduced but it cannot be expanded. Staff recommends moving forward with the project as presented. After discussing the funding with Finance Director Erickson, it was determined that the $16,880.80 which is in excess of the $700,000 identified in the 2019 Capital Improvement Plan can be covered be utilizing funds in the PIR Fund that have been received from assessment prepayments for the previous year’s mill and overlay project. Ad Valorem $ 95,000.00 PIR Fund Reserves $ 181,980.80 Assessments $ 439,900.00 Total $ 716,880.80 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 the City Manager to execute the City’s Standardized Contract with McNamara Contracting for the 2019 Mill and Overlay Improvement Project. 2. Remove this item from the consent agenda for additional discussion. RECOMMENDED MOTION: Alternative #1 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 19-___ A RESOLUTION ACCEPTING BIDS AND AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE THE CITY’S STANDARDIZED CONTRACT FOR THE 2019 MILL AND OVERLAY IMPROVEMENT PROJECT (STR19-000001) 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 seven (7) bids were received for the identified improvements as follows: Company Total McNamara Contracting $716,880.80 GMH Asphalt $720,740.23 Valley Paving $752,971.10 Park Construction $771,525.90 Northwest Asphalt $781,818.30 Bituminous Roadways $798,989.00 Midwest Asphalt $857,211.00 WHEREAS, WHEREAS, McNamara is the lowest responsible bidder in the amount of $716,880.80; and The additional cost of $16,880.80 in excess of the Capital Improvement Plan budget will be covered by utilizing existing funds within the Permanent Improvement Revolving (PIR) fund that were received from special assessment payments from previous Mill and Overlay projects. 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 execute the City’s Standardized Contract for the identified streets overlays with McNamara Contracting for an estimated cost of $716,880.80. Construction contract expenditures will be charged to 450- 43100.00-55010.00-PRI19-000001) The City’s intent is to issue bonds for the special assessment portion of the project funding. The funds will be drawn from the Permanent Improvement Revolving (PIR) Fund 450 as shown on the following table. Ad Valorem $ 95,000.00 PIR Fund Reserves $ 181,980.80 Assessments $ 439,900.00 Total $ 716,880.80 2 3. The City Council authorizes the intent to issue General Obligation Bonds for this project. 4. Proceeds from the bond sale will be deposited in the Permanent Improvement Revolving Fund. 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. Passed and adopted by the Prior Lake City Council this 18th day of March 2019. VOTE Briggs Thompson Burkart Braid Erickson Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Michael Plante, City Manager