ITEM 6.1 Street Improvement Project Change Order #11�
F
Otsego
MINNESOTA
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT
REQUESTOR:
MEETING DATE:
Public Works
City Engineer Wagner
July 9, 2018
PRESENTER(s)
REVIEWED BY:
ITEM #:
City Engineer Wagner
City Administrator/Finance Director
Flaherty
6.1
STRATEGIC VISION
MEETS:
THE CITY OF OTSEGO:
Alternate Bid
Is a strong organization that is committed to leading the community through innovative
communication.
X
Has proactively expanded infrastructure to responsibly provide core services.
$907,136.00
Is committed to delivery of quality emergency service responsive to community needs and
expectations in a cost-effective manner.
Fehn Companies, Inc.
Is a social community with diverse housing, service options, and employment opportunities.
$1,117,527.50
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
Accept bids and award the project for the 85th Street and MacIver Avenue Street Improvement Project
including the Alternate bid with Change Order #1.
ARE YOU SEEKING APPROVAL OF A CONTRACT? I IS A PUBLIC HEARING REQUIRED?
Yes No
BACKGROUND/J USTI FICATION:
Bids were opened for the 85th Street and MacIver Avenue Street Improvement Project on Tuesday, June 19,
2018. Four bids were received, and are as follows:
Contractor
Base Bid
Alternate Bid
Base +Alternate Bids
R.L. Larson Excavating, Inc.
$4,937,808.62
$907,136.00
$5,844,944.62
Fehn Companies, Inc.
$5,112,747.60
$1,117,527.50
$6,230,275.10
Northwest Asphalt, Inc.
$5,318,519.68
$1,053,391.96
$6,371,911.64
Veit & Company, Inc.
$5,880,651.55
$1,029,639.60
$6,910,291.15
R.L. Larson Excavating, Inc of St. Cloud, MN was the low bidder whether the Base bid only is awarded or
Base Bid plus Alternate bid is awarded.
The engineer's estimated construction cost was $4,301,290.81 for the Base bid and $972,946.50 for the
Alternate bid for a total Base plus Alternate equaling $5,274,237.31. The budgeted amount for the base
bid portion of the project was approximately $4,290,500. The low bid is approximately 10.8% above the
engineer's estimate for Base plus Alternate bid (14.8% above base bid and 6.8% under the alternate bid).
Using the actual low bid prices, the overall project cost (including anticipated ROW purchasing, wetland
bank, engineering and other soft costs) is estimated to be $7,452,551.22 Engineer's estimates were based
on recently opened bids in April (Kadler Avenue Project). Increases in the bids for this project were
primarily due to:
1)Late in year bid due to lengthy wait for USACOE permit
2)Price increases on ductile iron, concrete pipe and asphalt (see attached letters)
The 2018 project milestone is to complete all piping and get the street completed to gravel excepting the
Nashua Avenue roundabout, which would be completed next year with the curbing and asphalt for the
graveled portions. The project milestones were changed due to the permitting delays and contractors
indicated the revised milestones were attainable.
City staff has four options for the City Council to consider and have a summary of costs and funding for
each:
1. Base bid plus Alternate. Total project costs are estimated at $7,452,551.22 and State Aid funding
would not catch up until 2024 per projections. This option would extend force -main and trunk
water main beyond the current utility service district and with no current development proposals,
it may be premature.
2. Base bid only. Total project costs are estimated at $6,454,701.62 and State Aid funding would not
catch up until 2024 per projections. Not recommended by City staff as this option does not get
trunk water and forcemain to a desirable launch point for future development along the 85th Street
corridor.
3. Base bid plus alternate with a change order. Total project costs are estimated at $6,742,956.35
and State Aid funding would not catch up until 2024 per projections. This option would involve a
change order (-$645,086.25) to remove construction of much of the forcemain and trunk
watermain to a preferred future launch point at the north west corner of the Prairie View School
parcel.
4. Reject all bids and rebid as a 2019/2020 project. City staff does not support this option as the
project may increase in price with inflation and other unknowns regarding material costs.
Rebidding the project for construction starting in 2019 would be a major risk and is unlikely to
result in lower bids. Temporary easements are scheduled to end after 2019. There is also a
definitive need for the project to be completed as CSAH 38 and CSAH 39 will be under construction
in the coming years and alternate routes will be needed.
R.L. Larson Excavating, Inc. is a local contractor and has completed similar projects within the City of
Otsego (Odean Avenue) and with Hakanson Anderson as the engineer satisfactorily, we recommend
awarding the project.
SUPPORTING DOCUMENTS ATTACHED:
• Resolution 2018-46
• Bid Tabulation
• Letters regarding price increases of products
• Cost/Fund Summaries for Options
• State Aid Projection
• Change Order #1 for Option 3
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to Approve Resolution 2018-46 Accepting bids for the 85th Street and MacIver Avenue Street
Improvement Project (City Project #17-03) and Awarding the contract to R.L. Larson Excavating, Inc. of St.
Cloud, MN for the Base Bid + Alternate Bid in the amount of $5,844,944.62 and approve Change Order #1
in the amount of -$645,086.25
BUDGET INFORMATION
FUNDING:
BUDGETED:
403 -Municipal State Aid for Construction
YES
408 -Otsego Creek Trunk Storm Water
601 -Water Utility
602 -Sanitary Sewer Utility
RESOLUTION NO. 2018-46
RESOLUTION ACCEPTING BID AND AWARDING CONTRACT
WHEREAS, pursuant to an advertisement for bids for the construction of 85th Street
and Maciver Avenue Street Improvement Project, City Project No. 17-03, bids were received,
opened and tabulated according to law, and the following bids were received complying with
the advertisement:
Base Bid Alternate Bid Base + Alternate Bi
R.L. Larson Excavating, Inc.
$4,937,808.62
$ 907,136.00
$5,844,944.62
Fehn Companies, Inc.
$5,112,747.60
$1,117,527.50
$6,230,275.10
Northwest Asphalt, Inc.
$5,318,519.68
$1,053,391.96
$6,371,911.64
Veit & Company, Inc.
$5,880,651.55
$1,029,639.60
$6,910,291.15
AND WHEREAS, it appears that R.L. Larson Excavating, Inc. of St. Cloud, 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
for the Base plus Alternate Bid with R.L. Larson Excavating, Inc. of St. Cloud, Minnesota in
the name of the City of Otsego for the 85th Street and Maciver Avenue Street Improvement
Project, City Project No. 17-03, 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 9th day of July, 2018.
Motioned By:
Seconded By:
All in Favor:
Those Opposed:
Jessica Stockamp, Mayor
Tami Loff, Clerk
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CITY OF
�f is e o
MINNESOTA
46' Streets - Option 2
State Aid -CIP
Year
2014
Fund Balance
$1,614,798
Project
70th St SA Reimbursement #1
Estimated Cost
($104,382)
Projected Revenue
$493,335
70th St SA Reimbursement #2
($258,929)
Nashua Ave MS SA Reimbursement #1
($165,411)
70th St SA Reimbursement #3
($158,051)
2015
$1,421,360
70th St SA Reimbursement #4
($286,154)
$546,225
70th St SA Reimbursement #5
($794,850)
2016
$886,581
70th St SA Reimbursement #6
($442,509)
$560,677
2017
$1,004,749
70th St SA Reimbursement #7
($430,779)
$589,483
85th St (Page to 84th St) Reclaim
($365,000)
85th St (Nashua Ave to McIver Ave) &
Maciver Ave (80th to 85th) Design
($100,000)
85th St (Nashua Ave to Mason Ave) ROW
($775,000)
2018
($76,547)
85th St (Nashua Ave to McIver Ave) &
Maciver Ave (80th to 85th) Construction
($1,500,000)
$655,706
$688,491
85th St (Nashua Ave to Mason Ave)Design,
Observation, Staking and Contract Admin
($415,000)
2019
($1,335,841)
85th St (Nashua Ave to McIver Ave) &
Maciver Ave (80th to 85th) Construction
($3,033,000)
202085th
($3,680,349)
St (Nashua Ave to McIver Ave) &
Maciver Ave (80th to 85th) Construction
($200,000)
$722,916
2021
($3,157,434)
85th St (Nashua Ave to Page Ave)
Microsurface
($140,000)
$759,062
2022
($2,538,372)
No Scheduled Project Yet
$0
$797,015
2023
($1,741,357)
No Scheduled Project Yet
$0
$828,895
2024
($912,462)
No Scheduled Project Yet
$0
$862,051
2025
($50,411)
No Scheduled Project Yet
$0
$896,533
2026
$846,123
Queens Ave Reclaim
($300,000)
$932,395
2027 $1,478,517
Assumption on revenue of 5% increase per year based on population growth of City through 2022 then 4%
Project Costs of projects inflated for inflation at a rate of 3% per year
** City is allowed to advance encumber upto 5 times their annual allotment
3,278,530.00
7/9/2018C:\Users\Tami.OTSEGO\AppData\Local\Microsoft\Windows\INetCache\Content.0utlook\ZM0370WQ\2018 CIP State Aid -
Updated per bid2018 CIP State Aid - Updated per bid 1
OPTION #3 (BASE BID + ALT - C.O.) �-+ PROPOSED EXISTING WAT RMAININ
*STAFF RECOMMENDED ' ' FUTURE SANITARY FORCEMAIN
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