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ITEM 5.1 Streets Renewal Plan-Knife River Corpr CITY O 0tSe F o MINNESOTA V DEPARTMENT INFORMATION Request for City Council Action ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Public Works City Engineer Wagner April 9, 2018 PRESENTER(s) REVIEWED BY: ITEM #: City Engineer Wagner City Administrator/Finance Director Flaherty 5.1 STRATEGIC VISION MEETS: THE CITY OF OTSEGO: Project to Knife River Corporation. Is a strong organization that is committed to leading the community through innovative communication. X Has proactively expanded infrastructure to responsibly provide core services. Yes — held February 12, 2018 Is committed to delivery of quality emergency service responsive to community needs and expectations in a cost-effective manner. Consistent with the Capital Improvement Plan (CIP) and the Annual Street Renewal Plan, streets are rated Is a social community with diverse housing, service options, and employment opportunities. Thus the 2018 Street Renewal Project for the streets in Mississippi Shores is proposed. Is a distinctive, connected community known for its beauty and natural surroundings. AGENDA ITEM DETAILS RECOMMENDATION: Approve Resolution 2018-31 Accepting Bids and Awarding Project for the 2018 Otsego Street Renewal Project to Knife River Corporation. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? Yes Yes — held February 12, 2018 BACKGROUND/JUSTIFICATION: Consistent with the Capital Improvement Plan (CIP) and the Annual Street Renewal Plan, streets are rated and placed in order of City Councils and staff's recommendation to complete an improvement project. Thus the 2018 Street Renewal Project for the streets in Mississippi Shores is proposed. The streets within Mississippi Shores are paved. The existing roadway consists of a 3 %2" of bituminous surface approximately 24' feet wide. The pavement is up to 45 years old and is experiencing extensive block, alligator and thermal cracking as well as some surface raveling due to its age. The value of existing housing is positively benefited by accessing a bituminous paved street in good condition. The existing street surfaces in Mississippi Shores have PCI (Pavement Condition Index) Ratings ranging from 39 to 45 respectively, well below the average in the City of Otsego. Typically, pavements with PCI Ratings around 50 are in their final stages of useful life and will need to be reconstructed or overlaid in the very near future. If the project is not completed in a timely fashion, the street will quickly deteriorate to a point where City Staff will be spending an inordinate amount of time and funds to maintain function of the streets. The project is proposed to be a Special Assessment Project and has progressed in accordance with MN State Statue 429. City Council authorized the preparation of a Feasibility Study to determine what needs to be completed to remedy the issues, determine a cost estimate and allocate costs. A public hearing was held on February 12th of 2018 at which the study was presented to the residents along with an estimated assessment amount. The feasibility report estimated a project cost was $1,541,760. The benefitting property owners are proposed to be assessed 50% of the project costs and the City would provide the remaining funding. There were 244 properties and estimated the proposed assessments at $3,177.55 per residential unit. The actual assessment amounts will be dependent upon the actual project. After the construction plans were completed the revised estimated construction costs were $1,328,609.00. The City received a total of 10 bids, which were opened by City staff on April 3, 2018. The low bid is $1,289,855.10 or 97.1% of the engineers estimate. With the low bid price just below the estimate and from a contractor which is local and which has completed many projects within the City of Otsego and with Hakanson Anderson as the engineer satisfactorily, we recommend awarding the project. SUPPORTING DOCUMENTS ATTACHED: • Engineer's Cost Estimate (3-7-18) • Resolution 2018-31 • Bid Tabulation POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES: Motion to Approve Resolution. 2018-31 Accepting Bids for 2018 Otsego Street Renewal Project and Awarding the contract to Knife River Corporation of Sauk Rapids, MN in the amount of $1,289,855.10. BUDGET INFORMATION FUNDING: I BUDGETED: Fund #201— Pavement Management I Yes City of Otsego 2018 Street Renewal Project MISSISSIPPI SHORES ENGINEER'S COST ESTIMATE Bid Schedule "A" - STREETS Item No. Spec. Ref Description Estimated Quantity Unit Unit Price Total Estimated Extension 1 2021.501 MOBILIZATION 1 LS $58,925.00 $ 58,925.00 2 2104.501 REMOVE METAL CULVERT 1514 LF $5.50 $ 8,327.00 3 2104.505 REMOVE BITUMINOUS PAVEMENT DRIVEWAYS 333 SY $5.00 $ 1,665.00 4 2104.513 SAWING BIT PAVEMENT FULL DEPTH 4186 LF $2.50 $ 10,465.00 5 1 2112.501 SUBGRADE PREPARATION 54 RDST 1 $150.00 $ 8,100.00 6 2211.501 CL 5 AGGREGATE DRIVEWAYS 74 TON $20.00 $ 1,480.00 7 2211.506 SALVAGE AGGREGATE RECLAIM TO STOCKPILE 9297 CY $4.00 $ 37,188.00 8 2215.501 FULL DEPTH RECLAMATION P 79868 SY $1.00 $ 79 868.00 9 2232.501 MILL BITUMINOUS SURFACE 1.5" 196 SY $5.00 $ 980.00 10 2357.502 BITUMINOUS MATERIAL FOR TACK COAT 4330 GAL $3.00 $ 12 990.00 11 2360.501 TYPE SP 9.5 WEARING COURSE MIXTURE 2,C 7306 TON $60.00 $ 438,360.00 12 1 2360.502 TYPE SP 12.5 NON WEAR COURSE MIXTURE 2,C 9741 TON $55.00 $ 535 755.00 13 2540.602 RELOCATE MAIL BOX SUPPORT 25 EA $150.00 $ 3750.00 14 2563.601 TRAFFIC CONTROL 1 LS $3,000.00 $ 3,000.00 15 2573.530 CULVERT INLET PROTECTION 26 EA $200.00 $ 5,2 . 16 2574.525 PULVERIZED TOPSOIL BORROW (LVF 556 CY $40.00 $ 22 240.00 17 2575.555 ITURF ESTABLISHMENT (Hydro Seed 3.8 ACRE $2,0 0.00 $ 7,600.00 18 2582.502 4" DOUBLE SOLID LINE YELLOW - PAINT 6481 LF $0.10 $ 648.10 19 2582.502 24" STOP LINE WHITE - PAINT 221 LF $4.00 $ 884.00 Total - Bid Scnedule "A" Rid 3chedula "R" - STORM SEWER -I,A00,0'f .IU Item No. Spec. Ref Description Estimated Quantity Unit Unit Price Total Estimated Extension 20 2501.511 12" RC PIPE CULVERT CL V 49 LF $25.00 $ 1,225.00 21 2501.511 15" RC PIPE CULVERT CL V 198 LF $33.00 $ 6,534.00 22 2501.511 18" RC PIPE CULVERT CL V 272 LF $37.00 $ 10,064.00 23 2501.511 21" RC PIPE CULVERT CL III 82 LF $43.50 $ 3 567.00 24 1 2501.511 24" RC PIPE CULVERT CL III 593 LF $46.00 $ 27,278.00 25 2501.515 12" RC PIPE APRON 2 EA $500.00 $ 1,000.00 26 2501.515 15" RC PIPE APRON 8 EA $600.00 $ 4,800.00 27 2501.515 18" RC PIPE APRON 14 EA $750.00 $ 10 500.00 28 2501.515 21" RC PIPE APRON 4 EA $775.00 $ 3,100.00 29 2501.515 24" RC PIPE APRON 24 EA $800.00 $ 19 200.00 30 2501.602 ITRASH GUARD FOR 24" PIPE APRON 24 EA $200.00 $ 4,800.00 Total - Bid Schedule "B" aac,Ua0.UV Bid Schedule "A" - STREETS $1,236,541 Bid Schedule "B" - STORM SEWER $92,068 10% Administration, Legal, & Engineering $132,861 TOTAL ESTIMATED PROJECT COST $1,461,470 S.,Wunlcipal\AOTSEGO\392\2018VvllSSISSIPPI SHORES\B-PROJECT DEVELOPMENT\3-DESIGM0T392-2018 EngEst Page 1 of 2 RESOLUTION NO. 2018-31 RESOLUTION ACCEPTING BID AND AWARDING CONTRACT WHEREAS, pursuant to an advertisement for bids for the construction of 2018 Otsego Street Renewal Project, Improvement Project No. 18-02, bids were received, opened and tabulated according to law, and the following bids were received complying with the advertisement: Total Base Bid Knife River Corporation $1,289,855.10 North Valley, Inc. $1,319,134.14 Park Construction Company $1,342.614.27 Omann Bros., Inc. $1,350,604.20 Hardrives, Inc. $1,358,853.03 Midwest Asphalt Services, LLC $1,399,946.07 Northwest Asphalt, Inc. $1,409,115.78 ASTECH Corp. $1,436,813.07 GMH Asphalt Corporation $1,452,411.07 C.S. McCrossan Construction, Inc. $1,515,478.66 AND WHEREAS, it appears that Knife River Corporation of Sauk Rapids, Minnesota is the lowest responsible bidder. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF OTSEGO MINNESOTA: 1. The mayor and clerk are hereby authorized and directed to enter into a contract with Knife River Corporation of Sauk Rapids, Minnesota in the name of the City of Otsego for the 2018 Otsego Street Renewal Project, Improvement Project No. 18-02, according to the plans and specifications therefore approved by the city council and on file in the office of the City Clerk. 2. The City Clerk is hereby authorized and directed to return forthwith to all bidders the bid bond made with their bids, except that the bid bond of the successful bidder and the next lowest bidder shall be retained until a contract has been signed. Adopted by the city council this 9t" day of April, 2018. 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