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HomeMy WebLinkAbout8C - 1997 Imporvement Projects STAFF AGENDA REPORT DATE: 8C GREG ILKKA, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER CONSIDER APPROVAL OF RESOLUTION 97-XX, AWARDING BIDS FOR 1997 IMPROVEMENT PROJECTS AND AUTHORIZING HOWARD R. GREEN COMPANY TO PERFORM CONSTRUCTION STAKING AND OBSERVATION SERVICES, AND APPOINT TWO COUNCILMEMBERS TO THE ASSESSMENT COMMITTEE AUGUST 18, 1997 AGENDA #: PREPARED BY: SUBJECT: INTRODUCTION: The purpose of this agenda item is to: A) consider award of bids received and enter into a contract for 3 projects: (1) Project 95-07, Mushtown Road, (2) Project 97-17, Pike Lake Trail, and (3) Project 97-02, Fish Point Road; B) authorize Howard R. Green Company, formerly MSA Consulting Engineers, to perform construction staking and observation services on these projects; and C) appoint two members of the Council to serve on the Assessment Committee as provided under the Assessment Policy. BACKGROUND: At the April 7, 1997 Council meeting a Public Hearing was held and the Council ordered the 1997 improvements and authorized preparation of plans and specifications for Mushtown Road and Pike Lake Trail. Fish Point Road was authorized at a separate meeting because it is to be funded with State-Aid dollars and there are no proposed assessments. At the July 7, 1997 meeting the Council approved the plans and specifications and authorized advertisement for bids for all three projects. Bids were received and opened on August 4, 1997. The bids have been checked and tabulated. The low bidder was McNamara Contracting Inc., of Rosemount, MN in the amount of $899,092.90, for the base bid and $44,178.75 for Alternate #1 Mushtown Extension Street and $10,370.20 for Alternate #2 Mushtown Extension Storm Sewer. Their bid was below the total of the Engineer's Estimates of $1,003,854.25, $42,113.00, and $10,232.00, respectively. McNamara Contracting Inc. is a reputable contractor and successfully completed the 1996 Parks Trail and Parking Lot Improvements Project. DISCUSSION: Due to the lateness of the season McNamara Contracting Inc. and City staff would like to start work as soon as possible, as soon as the contracts are executed. 1620'0"~1JR?CCreek Ave. S.L Prior Lake. Minnesota 55312-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTlNITY E:v1PLOYER FINANCIAL IMPACT: 97AWARD.DOC Although the Northwood Road project was not awarded until after an assessment hearing had been held, previous projects scheduled the special assessment hearings following substantial completion of construction work. It is the Staff's recommendation to award these bids prior to the assessment hearing due to the lateness of the season. This recommendation is also based on the following factors: 1) the City already has $39,100 invested in design fees for these projects; 2) if the City holds the assessment hearing now the total amount of the project may not be assessed and the City will be responsible for paying any costs encountered due to changes on the contract such as unforeseen conditions; 3) potential exposure to legal action to recover bid preparation costs from the bidders; and 4) those to be assessed support and have encouraged the expeditious completion of these projects. Staff has negotiated with Howard R. Green Company to perform construction observation and staking services for these projects for a total of $66,852.54. Construction engineering/administration will be handled in-house. A breakdown of the fees is as follows: Mushtown Pike Lake Fish Point Road Trail Road Totals Staking $6,648.26 $8,629.68 $5,122.90 $20,400.84 Observation $15,13777 $19,649.34 $11,664.59 $46,451.70 Total $21.786.03 $28,279.02 $16.78749 $66,852.54 This fee represents 7.01 % of the bid amount. MnDOT guidelines for State Aid projects is 10% for normal projects and 12% for complex projects. Each fee is a separate not-to-exceed amount which mayor may not be expended. It is staff's desire to provide in-house inspection on Mushtown Road if construction sequencing as well as other project schedules allow, but we need to have these fees authorized if project schedules do not allow. We will track a direct and indirect time on this project so we can analyze our effectiveness for future project planning. Financing of the improvements are recommended as follows: Funding Mushtown Pike Lake Fish Point Totals Road Trail Road Assessments $95,776.00 $369,610.13 $0 $465,386.13 Tax Levy $290,561.38 $0 $0 $290,561.38 MSA Funds $0 $118,280.27 $239,471.20 $357,75147 Trunk $0 $32,818.70 $0 $32,818.70 Reserve Construction $0 $0 $37,461.05 $37,461.05 Fund Balance Project Total $386,337.38 $520,709.10 $276,932.25 $1,183,978.73 The numbers shown above include indirect costs for design, survey, inspection, administration, and financing. 2 The properties in the projects subject to assessments are: the Woodridge Estates 3rd Addition development, and one lot in the Windstar development on Mushtown Road; the Wensmann property, Holy Cross Church, and Mr. Ed Vierling on Pike Lake Trail. Mr. Vierling was not previously identified as an assessable property because the Knob Hill developer is building the street and water in front of his parcel. Originally, Knob Hill was going to build the sanitary sewer in front of Mr. Vierling's parcel but plans changed and the City was required to extend sanitary sewer to Mr. Vierling's property. The actual amount to be assessed should be determined by the Assessment Committee. The Council should appoint two Councilmembers to this committee. There are no proposed assessments on Fish Point Road, it is a collector street. ISSUES: Mr. Vierling attended the public improvement public hearing to order the project under the impression that he would not be assessed because at that time we believed that Knob Hill would be completing this work. Subsequently, we learned that the City would have to complete this work and assess it against the property owner. The property owner is aware of this fact. The City Attorney has advised us that failure to notify does not invalidate the hearing. The Special Assessment Policy provides for the creation of a Special Assessment Committee of two Councilmembers and three staff members to study the assessments and the policy and recommend the appropriate application for City Council consideration. This committee should meet prior to the assessment hearing. The Council should appoint two of its members to serve on the Assessment Committee. The proposal to do in-house construction observation is a staff proposed experiment to determine if we can more effectively deliver City services in accordance with the Council's top priority objectives. ALTERNATIVES: There are three alternatives for the City Council to consider: 1. Approve Resolution 97 -xx accepting bids and awarding the contract for Projects 95-07, 97-02, and 97-17 to the lowest responsible bidder, McNamara Contracting, Inc. for the base bid and alternatives #1 and #2 amounting to $953,641.85 and authorizing Howard R. Green Company to perform construction staking and observation services for these projects at a total cost not to exceed $66,852.54. 2. Appoint two Councilmembers to serve on the Assessment Committee. 3. Deny this item for a specific reason and provide staff with direction. 97AWARDDOC 3 RECOMMENDATION: ACTION REQUIRED: 97AWARD.DOC 4. Table this item until some date in the future. Alternative No.1, and 2. A motion and second to adopt Resolution 97 -XX, and a motion and second to appoi two Councilmembers to serve on the Assessment Commi e. Cb REVIE 4 RESOLUTION 97-XX ACCEPTING BIDS FOR MUSHTOWN ROAD (PROJECT 95-07), PIKE LAKE TRAIL (PROJECT 97-17) AND FISH POINT ROAD (PROJECT 97-02), AND AUTHORIZING HOWARD R. GREEN COMPANY TO PROVIDE CONSTRUCTION STAKING AND OBSERVATION SERVICES MOTION BY: SECOND BY: WHEREAS, pursuant to an advertisement for bids for improvement projects on Mushtown Road (Project 95-07), Pike Lake Trail (Project 97-17), And Fish Point Road (Project 97-02) described as follows: 1. Mushtown Road by the construction of grading, storm sewer, aggregate base, concrete curb and gutter, trails, bituminous surfacing, and appurtenant work; and 2. Pike Lake Trail by the construction of grading, storm sewer, utility improvements, concrete curb and gutter, sidewalk, bituminous surfacing, and appurtenant work; and 3. Fish Point Road by the construction of, storm sewer, aggregate base, concrete curb and gutter, sidewalk, bituminous trails, bituminous surfacing, and appurtenant work; and WHEREAS, The following bids were received, opened, and tabulated according to law and the following bids were received complying with the advertisement: CONTRACTORS BASE BID ALT. #1 AL T #2 McNamara Contracting, Inc. $899,092.90 Northdale Construction Co. $1,057,208.89 $44,178.75 $56,272.68 $10,370.20 $13,018.64 WHEREAS, it appears that McNamara Contracting, Inc. of Rosemount, Minnesota is the lowest responsible bidder, and WHEREAS, the City requires construction staking and observation services for these projects. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA: 1. The Mayor and City Manager are hereby authorized to enter into a contract with McNamara Contracting, Inc. of Rosemount, Minnesota in 162aO'~R?<Creek Ave. S.L Prior Lake. Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 .~N EQL'.~L OPPORTL'NITY' EMPLOYER the name of the City of Prior for the improvement projects on Mushtown Road (Project 95-07), Pike Lake Trail (Project 97-17) and Fish Point Road (Project 97-02). 2. The City Manager is hereby authorized and directed to return to both bidders the deposits made with their bids once a contract has been signed. 3. Howard R. Green Company Consulting Engineers is hereby authorized to provide construction staking and observation services for Mushtown Road, Pike Lake Trail, and Fish Point Road for a total fee not to exceed $66,852.54. Passed and adopted this 18th day of August, 1997. YES NO Andren Andren Kedrowski - Kedrowski Mader - Mader Robbins - Robbins Schenck - Schenck {Seal} Frank Boyles City Manager City of Prior Lake 97AWARD.DOC ...