HomeMy WebLinkAbout9A - Ida Circle and Highway 13 Project (#06-11)
MEETING DATE: JANUARY 22,2008
AGENDA#: 9A
PREPARED BY: LARRY POPPLER, ASSISTANT CITY ENGINEER
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION ACCEPTING BIDS AND
AWARDING THE CITY'S STANDARDIZED CONSTRUCTION CONTRACT FOR
STREET AND UTILITY CONSTRUCTION FOR THE IDA CIRCLE AND TRUNK
HIGHWAY 13 IMPROVEMENT PROJECT(CITY PROJECT #06-11)
DISCUSSION: Introduction
This agenda item accepts bids and awards a construction contract for the Ida
Circle Trunk Highway 13 Improvement Project.
History
Ida Circle was annexed into the City of Prior Lake in 2004 as part of the Orderly
Annexation Agreement. On September 30, 2005 a petition containing signatures
from seven of nine households was received by the City. The petition specifically
requests the City extend and install sanitary sewer and watermain improvements
to serve properties on Ida Circle. Properties on TH 13 were not part of the
petition.
Resolution 07-089 ordering preparation of plans and specifications for the project
was approved by the City Council on May 7,2007.
A public informational meeting was held on March 14, 2007, to provide affected
property owners an opportunity to discuss the project. A Public Hearing was
conducted on May 7, 2007. A second open house meeting was held on July 12,
2007. City staff were in attendance at all three meetings to answer questions
from the public.
On August 20, 2007 the City Council authorized the advertisement for bids on
this project. On October 10, 2007 the City received bids for this project. At the
November 5, 2007 City Council meeting the City Council declared the costs to be
assessed and held the Assessment Hearing on December 3, 2007. One
property owner addressed the Council at the Hearing. The assessment roll was
adopted on December 17,2007.
The project includes storm sewer, sanitary sewer, water main, concrete curb and
gutter, aggregate base, bituminous surfacing, and appurtenant work. The
construction of this project is proposed to be funded through assessments, tax
levy, and Trunk Sewer and Water Fund.
Current Circumstances
The City received 12 bids on October 10, 2007. The bids have been checked
and tabulated. S.M. Hentges and Sons Inc. from Jordan, Minnesota submitted
the low bid in the amount of $234,008.18. The lowest bid was 26% or
$85,596.82 below the engineer's estimate of $319,605.00. The bid summary is
provided as follows: www.cityofpriorlake.com
R:\Council\2008 Agenda Reports\OI 22 08\Ida g~gPX}~~~frla:~o~OO / Fax 952.447.4245
COMPANY BID AMOUNT
S.M. HENTGES AND SONS INC. $234,008.18
G.L. CONTRACTING INC. $238,220.61
RYAN CONTRACTING $257,098.00
NORTHDALE $257,750.65
CHARD TILING AND EXCAVATING INC. $275,123.90
NORTHWEST ASPHAL T INC. $276,065.84
MINGER CONSTRUCTION COMPANY $277,893.40
KOBER EXCAVATING INC. $278,365.58
HESELTON CONSTRUCTION LLC $302,438.00
VALLEY PAVING INC. $308,148.10
BURCHVILLE CONSTRUCTION INC. $313,286.50
THREE RIVERS CONSTRUCTION INC. $361,707.50
S.M. Hentges and Sons Inc. is a responsible Contractor and has recently
completed the City's Downtown Project, Ring Road Project, and the Hawk Ridge
Sidewalk Project. In addition to those City projects, S,M. Hentges and Sons Inc.
has performed considerable work in Prior Lake for the Scott County Highway
Department. These projects include County Road 82, County Road 21 (Franklin
to Adelmann), County Road 83 and County Road 42. Staff recommends that the
City Council award the contract to S.M. Hentges and Sons Inc. as the lowest
responsible bidder,
ISSUES:
Contract Award Deadline
As detailed in the bid documents, bids must be awarded within 60 days from the
date of the bid opening. S,M. Hentges and Sons Inc. has provided an extension
of the contract award date of 120 days from the bid opening. The City must
award the contract prior to February 10, 2008 or the bid becomes invalid,
FINANCIAL
IMPACT:
The property owners are proposed to be assessed 100% for all costs associated
with the proposed sanitary sewer and watermain improvements. The City will
use the Sewer and Water Fund to fund oversizing of the watermain on TH 13.
Ida Circle properties will be assessed 40% of the street and storm sewer
improvements on Ida Circle. The remaining 60% will be paid through the tax
levy.
PROJECT FUNDING TABLE
PROJECT ASSESSMENT* $185,675.00
PROJECT LEVY* $109,086.00
SEWER AND WATER FUND* $21,497.00
TOTAL PROJECT COST* $316.258.00
* Includes Indirect Costs
Also included in the tax levy are any septic system credits per the Orderly
Annexation Agreement. Septic system credits in the amount of $19,269.00 are
reflected in the Project Levy amount illustrated in the table above.
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ALTERNATIVES: The alternatives are as follows:
1. Approve a resolution accepting bids and awarding the City's Standardized
Construction Contract for street and utility construction to S.M. Hentges and
Sons Inc. for the Ida Circle and Trunk Highway 13 Improvement Project.
2. Deny this item for a specific reason and provide Staff with direction.
3. Table this item until some date in the future.
RECOMMENDED Alternative #1
MOTION:
R:\Council\2008 Agenda Reports\OI 22 08\Ida Circle Award Agenda.doc
4646 Dakota Street S.E.
Prior Lake, MN 55372-1714
RESOLUTION 08-xxx
A RESOLUTION ACCEPTING BIDS AND AWARDING THE CITY'S STANDARDIZED
CONSTRUCTION CONTRACT FOR STREET AND UTILITY CONSTRUCTION FOR THE IDA
CIRCLE AND TRUNK HIGHWAY 13 IMPROVEMENT PROJECT(CITY PROJECT #06-11)
Motion By:
Second By:
WHEREAS, pursuant to an advertisement for bids for the Ida Circle and Trunk Highway 13
Improvement Project (City Project #06-11) which includes sanitary sewer, water main,
storm sewer, aggregate base, concrete curb and gutter, bituminous pavement, turf
restoration and appurtenant work; and
WHEREAS, twelve bids were received, opened, and tabulated according to law; and
WHEREAS, the following bids were received complying with the advertisement:
COMPANY BID AMOUNT
S.M. HENTGES AND SONS INC. $234,008.18
G.L. CONTRACTING INC. $238,220.61
RYAN CONTRACTING $257,098.00
NORTH DALE $257,750.65
CHARD TILING AND EXCAVATING INC. $275,123.90
NORTHWEST ASPHAL T INC. $276,065,84
MINGER CONSTRUCTION COMPANY $277,893.40
KOBER EXCAVATING INC. $278,365.58
HESEL TON CONSTRUCTION LLC $302,438,00
VALLEY PAVING INC. $308,148.10
BURCHVILLE CONSTRUCTION INC. $313,286.50
THREE RIVERS CONSTRUCTION INC. $361,707,50
and;
WHEREAS, S.M. Hentges and Sons Inc. of Jordan, Minnesota 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. The Mayor and City Manager are hereby authorized to enter into the City's standard contract with
S.M, Hentges and Sons Inc, of Jordan, Minnesota in the name of the City of Prior Lake for the Ida
Circle and Trunk Highway 13 Improvement Project (Project #06-11) in the amount of $234,008.18.
3. The City Manager is hereby authorized and directed to return to all bidders the deposits made with
their respective bids.
4. Per City Council Resolution #07-209, the portion of the cost of such improvements to be paid by the
City has been declared to be $130,583.00 (Project Levy - $109,086.00, Trunk Sewer and Water
R:\Council\2008 Agenda Reports\01 22 08\lda Circle Aw~~lJffi!&tiW-ke.com
Phone 952.447.9800 / Fax 952.447.4245
Fund - $21,497.00), and the portion of the cost to be assessed against benefited property owners
has been declared to be $185,675,00.
PASSED AND ADOPTED THIS 22ND DAY OF JANUARY, 2008.
Hauaen Hauaen
Erickson Erickson
Hedbera Hedbera
LeMair LeMair
Millar Millar
YES
NO
Frank Boyles, City Manager
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STANDARD CONTRACT BETWEEN
THE CITY AND CONTRACTOR
THIS AGREEMENT made this 22nd day of January. 2008, by and between the CITY OF
PRIOR LAKE, a Minnesota municipal corporation (hereinafter the "City') and S.M.
HENTGES AND SONS INC. (hereinafter the "Contractor').
PurDose: The City Council has determined that the City should construct sanitary sewer.
watermain. storm sewer. streets. and appurtenant work in area of Ida Circle and Trunk
Hiahwav 13 (Proiect #06-11) in accordance with the Plans and Specifications dated
September. 2007. After completing the notification and bidding process, the City Council
has awarded bid to S.M. Hentges and Sons Inc. by Resolution #08- , subject to entering
into this contract.
The City and Contractor for the consideration stated below agree as follows:
1. The Contractor agrees to perform and complete all the provisions of the specifications
and/or plans indicated below in Paragraph 2, as approved by the City for City Proiect
#06-11 in accordance with the City's Ida Circle and Trunk Hiahway 13 Improvement
Proiect Plans and Specifications.
2. Contract and Contract Documents. The following documents attached hereto shall
be referred to as the "Contract Documents", all of which shall be taken together as a
whole as the contract between the parties as if they were set out verbatim and in full
herein which are all on file in the office of the City Manager:
The City's Advertisement for Bids dated September 10.2007.
Plans and Specifications
Proposal submitted by Contractor and on file in the office of the City
Manager of the City.
Performance Bond and Payment Bond.
Insurance Certificate(s); and
This document.
1. The Proiect ('Work"). The Contractor shall perform all of the Work required by the
Contract Documents for the sum of Two-Hundred. Thirty-Four Thousand. Eiaht
and 18/100 Dollars ($234.008.18).
2. Time of Commencement and Substantial ComDletion. The Work to be performed
under this Contract shall be commenced immediately after execution of this
Agreement. The Work shall be substantially completed by July 31.2008.
a. Startina the Work:
1, The Contractor shall commence the Work in such a manner and at such
a time as to expeditiously interface with the Work of other contractors,
and shall pursue the Work diligently to completion.
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2. The execution of this Agreement by both parties constitutes a Notice to
Proceed with the Work, unless the City issues a separate Notice to
Proceed designating a different starting time. The Contractor shall
promptly provide timely performance according to the immediate
progress requirement of the Work.
3. The Contractor shall commence the Work prior to the execution of this
Agreement if a Letter of Intent containing a Notice to Proceed is issued
by the City.
4. Upon receipt of a Notice to Proceed, the Contractor shall pursue and
complete the Work without voluntary interruption for any reason, as long
as the Work can be performed. The Contractor agreed that it shall
continue the Work at all times the Work can be performed, at a pace
consistent with good industry practice regardless of pending or current
disputes in connection with the Contract Documents.
a. Timely Performance, It is the City's intent to complete the Project as soon as
possible. The Contractor agrees to cooperate in scheduling and performing the
Work to achieve completion of the Project as soon as possible.
1, Contract Sum, The City shall pay the Contractor in current funds for the performance
of the Work, subject to additions and deductions by Change Orders as provided in the
Contract Document.
2, Final Pavment. Final payment, constituting the entire unpaid balance of the Contract
Sum, shall be paid by the City to the Contractor when the Work has been completed,
the Contract fully performed, and the City accepts the Work. The acceptance of final
payment shall constitute a waiver of all claims by the Contractor except those
previously made in writing and identified by the Contractor as unsettled at the time of
Application for Final Payment.
3. Performance and Pavment Bonds. The Contractor shall post a Performance and
Payment Bond each in an amount equal to one hundred percent (100%) of the
payments due Contractor to insure the prompt and faithful performance of this
Contract by Contractor and to insure prompt payment to the subcontractors and
suppliers of the Contractor. The Bonds shall be in a form approved by the City.
Contractor shall provide the Bond to the City before commencing work and together
with the executed contract document. If the Performance and/or Payment Bond are
not submitted as provided herein, this Contract shall be considered void.
4. Insurance and Indemnification.
a. The Contractor shall purchase and maintain insurance to protect itself from
claims under the Worker's Compensation Act.
b. The Contractor shall purchase and maintain insurance to protect itself from
claims for damages because of bodily injury including personal injury, sickness or
disease, or death of any of its employees or any person other than its
employees; and from claims for damages because of injury to or destruction of
tangible property including loss of use resulting therefrom and from claims arising
out of the performance of this Contract by the Contractor. The base limits of this
policy shall be $1,000,000 combined single limit.
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c. Before the City executes this Contract, the Contractor shall provide the City with
evidence of insurance in a form of a Certificate from the insurer naming all
policies. The City shall be an additional named insured on the Contractor's
insurance policy. The insurance policies shall contain a provision that they may
not be cancelled unless prior written notice thereof is given to the City not less
than ten (10) business days prior to the cancellation date.
d. The Contractor shall be responsible for initiating, maintaining and supervising all
safety precautions and programs in connection with the Work, The City shall not
be responsible for or have control of safety precautions and programs in
connection with the Work.
e. Contractor provides the financial protection of the required insurance to benefit
both City and Contractor. Providing and paying for the insurance is part of the
consideration which Contractor offers City. The City does not represent or
warrant that the types of limits of insurance specified in this Article adequately
protect Contractor's interest or sufficiently cover Contractor's liability.
f. The Contractor shall defend, hold harmless and indemnify the City, its officers,
agents, and employees form and against any and all claims, demands, actions or
causes of action (including court costs and reasonable attorneys' fees) of
whatever nature of character arising from the Contractor's performance of the
Work herein.
1. Warranty. The Contractor expressly warrants and guarantees to the City that all Work
performed and all materials furnished shall be in accord with the Contract Documents
and shall be free from defects in materials, workmanship, and operation which appear
within a period of 1 year, or within such longer period as may be prescribed
by law or in the terms of the Contract Documents, from the date of City's acceptance
of the Work. The City's rights under the Contractor's warranty are not the City's
exclusive remedy. The City shall have all other remedies available under this Contract,
at law or in equity.
Should any defects develop in the materials, workmanship or operation of the system
within the specified period, upon notice from the City, the Contractor agrees, within
fourteen (14) calendar days after receiving written notice and without expense to the
City, to repair, replace and in general to perform all necessary corrective Work with
regard to the defective or nonconforming Work or materials to the satisfaction of the
City. THE FOREGOING SHALL NOT IN ANY MANNER LIMIT THE CITY'S REMEDY
OR THE CONTRACTOR'S LIABILITY TO THOSE DEFECTS APPEARING WITHIN
THE WARRANTY PERIOD. The Contractor agrees to perform the Work in a manner
and at a time so as to minimize any damages sustained by the City and so as to not
interfere with or in any way disrupt the operation of the City or the public.
The corrective Work referred to above shall include without limitation, (a) the cost of
removing the defective or nonconforming Work and materials from the site, (b) the
cost of correcting all Work of other Contractors destroyed or damaged by defective or
nonconforming Work and materials including the cost of removal of such damaged
Work and materials from the site, and (c) the cost of correcting all damages to Work of
other Contractors caused by the removal of the defective or nonconforming Work or
materials.
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The Contractor shall post bonds to secure the warranties.
2. Riahts and Remedies. The duties and obligations imposed by the Contract
Documents and the rights and remedies available thereunder shall be in addition to
and not a limitation of any duties, obligations, rights and remedies otherwise imposed
or available by law,
No action nor failure to act by the City or the Contractor shall constitute a waiver of
any right or duty afforded any of them under the Contract, nor shall any such action or
failure to act constitute an approval of or acquiescence in any breach thereunder,
except as may be specifically agreed in writing.
3. Notice. Required notices to the Contractor shall be in writing, and shall be either
hand-delivered to the Contractor, its employees or agents, or mailed to the Contractor
by certified mail at the following address:
S.M. Hentges and Sons Inc.
650 Quaker Avenue
Suite 200
P.O. Box 69
Jordan, MN 55352
Notices to the City shall be in writing and shall be either hand-delivered or mailed to
the City by certified mail at the following address:
Larry Pop pier, Assistant City Engineer
City of Prior Lake
4646 Dakota Street S.E.
Prior Lake, MN 55372
4. Condition and InSDection. All goods and other materials fumished under this
Contract shall be new and in current manufacture, unless otherwise specified, and all
goods and work shall be of good quality, free from faults and defects and in
conformance with the Contract Documents. All goods and work not conforming to
these requirements shall be considered defective.
Goods shall be subject to inspection and testing by the City. Defective goods or goods
not in current manufacture may be returned to the Contractor at the Contractor's
expense.
5. Correction of Work. The Contractor shall promptly correct all Work rejected by the
City as defective or as failing to conform to the Contract Documents whether observed
before or after Substantial Completion of the Project and whether or not fabricated,
installed or completed. The Contractor shall bear all costs of correcting such rejected
Work.
If, within one (1) year after the Date of Substantial Completion of the Project or
designated portion thereof or within one (1) year after acceptance by the City of
designated equipment, or within such longer period of time as may be prescribed by
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law or by the terms of any applicable special warranty required by the Contract
Documents, any of the Work is found to be defective or not in accordance with the
Contract Documents, the Contractor shall correct it promptly after receipt of a written
notice from the City to do so unless the City has previously given the Contractor a
written acceptance of such condition. This obligation shall survive both final payment
for the Work or designated portion thereof and termination of the Contract. The City
shall give such notice promptly after discovery of the condition.
6. City's Riaht to CarN Out the Work. If the Contractor defaults or neglects to carry out
the Work in accordance with the Contract Documents or fails to perform any provision
of the Contract, the City may, after seven (7) days written notice to the Contractor and
without prejudice to any other remedy the City may have, make good such
deficiencies. In such case an appropriate Change Order shall be issued deducting
from the payment then or thereafter due the Contractor the cost of correcting such
deficiencies. If the payments then or thereafter due the Contractor are not sufficient to
cover such amount, the Contractor shall pay the difference to the City.
7. Chanae Orders. The Contract Sum may be changed only by written Change Order
approved by the City Council. The cost or credit to the City resulting from a Change
Order shall be determined in one of the following manners: (1) by mutual acceptance
of a lump sum; or (2) by unit prices stated in the Contract Documents as subsequently
agreed upon. Any request for Change Order must be certified as true, correct and
accurate by the maker to avoid fraudulent requests.
8, Unauthorized Work. Additional Work performed without authorization of a Change
Order will not entitle Contractor to an increase in the Contract Price or an extension of
the Contract Time.
9, Termination. If the Contractor persistently or repeatedly refuses or fails, except in
cases for which extension of time is provided, to supply enough properly skilled
workers or proper materials, or fails to make prompt payment to subcontractors or for
materials or labor or persistently disregards laws, ordinances, rules, regulations or
orders of any public authority having jurisdiction, or other wise is guilty of a substantial
violation of a provision of the Contract Documents, and fails within seven (7) days after
receipt of written notice to commence and continue correction of such default, neglect
or violation with diligence and promptness, the City may, without prejudice to any
other remedy the City may have, terminate the employment of the Contractor and take
possession of the site and of all materials, equipment, tools, construction equipment
and machinery thereon owned by the Contractor and may finish the Work by whatever
methods the City may deem expedient. In such case the Contractor shall not be
entitled to receive any further payment until the Work is finished.
10. PromDt Payment to Subcontractors. The Contractor shall pay any subcontractor
within ten (10) days of the Contractor's receipt of payment by the City for undisputed
services provided by the subcontractor. If the Contractor fails within that time to pay
the subcontractor any undisputed amount for which the Contractor has received
payment by the City, the Contractor shall pay interest to the subcontractor on the
unpaid amount at the rate of one and one-half percent (1.5%) per month or any part of
a month. The minimum monthly interest penalty payment for an unpaid balance of
$100.00 or more is $10.00. For an unpaid balance of less than $100.00, the
Contractor shall pay the actual interest penalty due to the subcontractor. A
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subcontractor who prevails in a civil action to collect interest penalties form the
Contractor shall be awarded its costs and disbursements, including attorney's fees,
incurred in bringing the action. The Contractor shall, by an appropriate agreement with
each subcontractor, require each subcontractor to make payments to his
subcontractors in a similar manner.
11. IndeDendent Contractor. At all times and for all purposes hereunder, the Contractor
is an independent contractor, and not an employee of the City.
12. Affirmative Action Policv. All Contractors and subcontractors employed shall comply
with all applicable provisions of all federal, state and municipal laws which prohibit
discrimination in employment on the basis of race, color, religion, sex, marital status,
national origin, ancestry, age, and physical or mental handicap and all rules and
regulations, promulgated and adopted pursuant thereto. The Contractor will include a
similar provision in all subcontracts entered into for the performance of this contract.
13. Miscellaneous.
a. This Contract shall become effective only upon its execution by both the City and
the Contractor. This Contract shall not be modified, amended, rescinded, waived
or terminated without the approval in writing of the City Council.
b. The City shall be allowed to audit Contractor's books and records during regular
business hours upon five (5) days written notice.
c. This Agreement shall be governed by the laws of the State of Minnesota.
d. That with respect to any and all businesses conducted or acts performed
pursuant to this Agreement, the Contractor shall be deemed an employer.
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IN WITNESS WHEREOF, the parties have entered into this Agreement as of the date and
year hereinabove first written.
CITY OF PRIOR LAKE
CONTRACTOR
By:
By:
Jack Haugen, Mayor
Its:
By:
Frank Boyles, City Manager
STATE OF MINNESOTA )
)ss.
COUNTY OF SCOTT )
The foregoing instrument was acknowledged before me this day of
I 200 _, by Jack Haugen and Frank Boyles, respectively the
Mayor and City Manager of the City of Prior Lake, a Minnesota municipal corporation, on
behalf of the corporation and pursuant to the authority granted by its City Council.
Notary Public
STATE OF MINNESOTA )
)ss.
COUNTY OF SCOTT )
The foregoing instrument was acknowledged before me this
,200_, by
of
day of
,the
on its
behalf, Contractor.
Notary Public
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