City Council Meeting Date: June 18, 2019
To: Mayor and City Council
City Administrator
From: David Bennett, Public Works Director/City Engineer
Sean Simonson, Engineering Manager
Title
Consider Accepting Bids and Awarding Contract - 2019 Street Reclamation Project
Body
Action Requested:
Staff recommends approval of the attached Resolution accepting bids and awarding the contract for the 2019 Street Reclamation Project (STRT2019-A42).
Summary Report:
The City Council is being asked to award the contract for the 2019 Street Reclamation Project (STRT2019-A42). The Plans and Specifications were completed by the City of Northfield Engineering Division, and at the May 7, 2019 City Council Meeting, the Council authorized the advertisement for bids via Resolution 2019-044. The project was advertised for the minimum 21 days as required by Minnesota Statutes Chapter 429. The ad for bid was published in the Northfield News, on the MnDOT eAdvert site, and the City of Northfield website.
The project scope includes work on the following streets (Attachment 2):
• Blue Stem Court
• Covey Court
• Eklund Court
• Grundhoefer Court
• Hackerson Court
• Kimble Court
• Nelson Court
• Simione Court
• Wilson Court
• Zanmiller Drive from Meldahl Lane to Gill Lane
• Gill Lane from Zanmiller Drive to Lockwood Drive
• Lockwood Drive from Meldahl Lane to Gill Lane
• Orchard Street from Third Street to Fifth Street
• Plum Street from Third Street to Fifth Street
• Poplar Street from Fourth Street to Fifth Street
• Forest Avenue from Lincoln Street to Fifth Street
• Forest Avenue Loop
• Third Street from Railroad Tracks to Forest Avenue
• Fourth Street from Odd Fellows Lane to Poplar Street
The City received four (4) competitive bids (Attachment 3), which were publicly opened and tabulated on June 6, 2019 at 2:00 p.m. The bids ranged from $3,572,847.70 to $4,227,308.44 with the lowest responsible bidder being Heselton Construction, LLC with a total bid amount of $3,572,847.70. This compared to the engineers estimate of $2,972,573.10. This project is identified in the 2018 - 2022 Capital Improvement Plan (CIP), and funding for the project is a combination of Municipal State Aid (MSA) funds, enterprise funds, special assessments, and bonding as outlined in Attachment 4.
Staff is recommending that the project be awarded. These streets are deteriorated beyond routine patching and maintenance.
Alternative Options:
City Council may decide not to award this project; however, these roads will continue to deteriorate due to the condition of the current pavement surface, and future maintenance requirements will increase significantly.
Financial Impacts:
The total project cost includes funding for construction contingency and contract overhead. The actual bid prices are 20% above the Engineer’s Estimate performed at the time of Project Award (Attachment 4). Staff has evaluated the bids, and found that costs related to all aspects of the work have increased including utility cost and street improvement cost.
The funding for the 1% for the arts is included with the project. The award resolution includes transferring the 1% for the arts to the Arts and Culture Fund.
Tentative Timelines:
See the Project Process (Attachment 5) for upcoming project milestones.