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Home My WebLink About7C - Waterfront Pasage Business Park Bid Awards AGENDA NUMBER: PREPARED BY: SUBJECT: DATE: INTRODUCTION: BACKGROUND: DISCUSSION: 7C BRUCE LONEY, ASSISTANT CITY ENGINEER CONSIDER APPROVAL OF RESOLUTION 93-75, AWARDING BID FOR PROJECf 93-11 (WATERFRONT PASSAGE BUSINESS PARK) AND PUBLIC UTILITY IMPROVEMENTS AND AUTHORIZING MAIER, STEWART ASSOCIATES m CONDUCf CONSTRUCfION SURVEYING AND INSPECfION OF SITE IMPROVEMENTS SEPTEMBER 7, 1993 The purpose of this Agenda item is to accept or reject the bids received for Project 93-11. If the bids are acceptable, the City would enter into a contract for the construction of Project 93-11. Resolution 93-76 has been prepared for Council action on the award of bid. Also this Agenda item is for Council to consider authorizing Maier, Stewart & Associates, Inc. to conduct the construction surveying and inspection on the project. On July 20, 1993, the City Council approved the Advertisement for Bids for the improvement of Waterfront Passage Business Park. A bid opening date was established for August 16, 1993 at 10:00 A.M. Staff issued an addendum to the Advertisement for Bids extending the bid date to August 30, 1993 at 10:00 A.M. City engineering staff was programmed to do the construction surveying and inspection work for the Waterfront Passage Business Park improvements when the project began in 1992. Since that time, the workload has increased drastically due to development activity and engineering staff personnel has diminished with a transfer of one employee from Engineering to Maintenance. The bid opening on August 30, 1993 had six (6) bidders with Imperial Developers, Inc. of Bloomington, Minnesota the low bidder. The low bid was $789,693.00 with the Engineer's Estimate of $850,000.00. The proforma construction cost estimate for the Business Park was estimated to be $888,133.65. The cost estimate included $23,182.00 for future County stonn sewer on CSAH 21 and $47,180.00 for a potential future cul-de-sac within Waterfront Passage Business Park. The proforma construction cost estimate for the improvements on Project 93-11 is approximately $817,000.00 making an adjustment for the stonn sewer and cul-de-sac. 4629 Dakota St. S.E., Prior Lake, Minnesota 55372 / Ph. (612) 447.4230 / Fax (612) 447-4245 A,"oj EQUAL OPPORTUNITY E\lPLOYER ALTERNATIVES: The bid received is below the Engineer's Estimate and the previous proforma cost estimate for the Business Park. Imperial Developer's is a reputable contractor and has done work for the City in the past as recently as the Duluth Avenue improvement project in 1989. Staff feels that the bid received is an acceptable one and would recommend award of the bid to Imperial Developers, Inc. The costs listed above do not include costs for installation utilities such as gas, electric, and telephone. Staff is in the process of working with the utility companies to determine the cost of these extensions. The utility companies will reduce the cost if the extensions are done in phases as buildings are constructed. Staff believes that the cost for utility extensions will be in the range which were included in the proforma. It is Staff's intention to have street lighting installed as utilities are extended in phases. In the Business Office Park proforma, City engineering staff time was estimated to be $109,481.00 (15% of the project cost) and was included in the bond issue. City engineering staff has designed the plans. The construction surveying and construction inspection costs estimated by Maier Stewart to complete the Business Park improvements are $22,000.00 and $36,000.00 respectively. City staff will assist whenever possible in the construction inspection to minimize the project inspection cost. In the fmancing of the project, the $109,481.00 for engineering was included in the bond issue and was to be a revenue source for Project Administration and Engineering in the General Fund. If Council authorizes the use of Maier Stewart personnel to complete the project, the amount to be included in the General Fund revenues will be reduced by approximately $58,000.00. Staff has contracted with Tellus Environmental Consultants, Inc. to have an Environmental Phase One Study completed on the Business Office Park. The reason for doing this is to protect the City in the future in the event a contamination is found after the property is developed with businesses. Staff does not believe that any environmental problems exist on site. The study needs to be completed prior to construction activity proceeding. Award of the bid should be contingent upon the study being completed. It is anticipated that the study will be completed the week of September 6, 1993. The following is a list of the alternatives: 1. Approve Resolution 93-75 awarding the contract for Project 93-11 to the lowest responsible bidder for the Base Bid amount. Approve a motion authorizing Maier Stewart & Associates, Inc. to perform surveying and inspection on Project 93-11. 2. Do not approve Resolution 93-75 for specific reasons. 3. Table this item for specific reasons. RECOMMENDATION: The recommendation is to award bid to Imperial Developers, Inc. FINANCIAL IMPACT: Project 93-11 will be paid for by a combination of Special Assessments on the benefitting business property, Business Office Park land sales, Trunk Reserve Funds, and Enterprise Funds. Make a motion to approve Maier Stewart & Associates, Inc. to perform construction surveying and construction inspection on Project 93-11. Project administration appropriations of $58,000.00 to Maier Stewart & Associates, Inc. will reduce the availability of project administration fees in future budget years. ACTION REQUIRED: Make a motion to approve or deny Resolution 93-75 contingent upon no environmental problems being found. Make a motion to approve Maier Stewart & Associates, Inc. to perform construction surveying and construction inspection on Project 93-11. . RS937S. RESOLUTION 93-75 RESOLUTION ACCEPTING BID FOR PROJECT NO. 93-11, (WATERFRONT PASSAGE BUSINESS OFFICE PARK) MOTION BY: SECONDED BY: WHEREAS, pursuant to an advertisement for bids for the improvement of Waterfront Passage Business Park located south of CSAH 21 and within Section 1 by the construction of grading, sanitary sewer, watermain, storm sewer, aggregate base, concrete curb and gutter, bituminous surfacing and appurtenant work; bids were received, opened, and tabulated according to the law, and the following bids were received complying with the advertisement: BASE CONTRACTOR BID 1. Imperial Developers $ 789,693.00 2. SJ. Louis Construction, Inc. $ 799,145.00 3. Ryan Contracting, Inc. $ 815,502.50 4. Northdale Construction $ 932,950.31 5. G.L. Contracting $ 987,108.71 6. S.M. Hentges & Sons, Inc. $1,030,974.00 AND WHEREAS, it appears that Imperial Developers. Inc. of Bloomin&ton. Minnesota is the lowest responsible bidder. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA, that 1. The Mayor and City Manager are hereby authorized to enter into the attached contract with Imperial Developers. Inc. of Bloomin~on. Minnesota in the name of the City of Prior Lake for the improvement of Waterfront Passage Business Park located south of CSAH 21 and within Section 1, by the construction of grading, sanitary sewer, watermain, storm sewer, aggregate base, concrete curb 4629 Dakota St. S.E., Prior Lake. Minnesota 55372 / Ph. (612) 447-4230 / Fax (612) 447.4245 /\,"< EQUAL OPPORTUNITY EMPLOYER and gutter, bituminous surfacing and appurtenant work; according to the plans and specifications therefore approved by the City Council and on file in the office of the City Manager. 2. The City Manager is hereby authorized and directed to return forthwith to all bidders the deposits made with their bids, except that the deposits of the successful bidder and the next two lowest bidders shall be retained until a contract has been signed. Passed and adopted this th day of { Seal } , 1993. YES NO Andren Fitzgerald Kedrowski Scott White Andren Fitzgerald Kedrowski Scott White Frank Boyles City Manager City of Prior Lake