ITEM 6.1 Street Improvements-James Additionn�
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MINNESOTA V
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT:
REQUESTOR:
MEETING DATE:
Public Works
City Engineer Wagner
May 9, 2016
PRESENTER(s):
REVIEWED BY:
ITEM #:
Assistant City Engineer Larson
City Administrator Johnson
6.1
AGENDA ITEM DETAILS
RECOMMENDATION:
Approve Resolution 16-45 Accepting Bids and Awarding Project for the James Addition Street
Improvements to Oman Brothers Paving Inc.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
Yes
BACKGROUND/JUSTIFICATION:
IS A PUBLIC HEARING REQUIRED?
Yes — was held March 14, 2016
The 2016 Street Renewal Project, City Project No. 16-04 will improve streets within James Addition
including 88th Street NE (Page Ave. NE to West plat line), 87th Street NE (Page Ave. NE to Packard
Ave. NE) & Packard Ave. NE (87th Street NE north to the cul-de-sac) by patching and overlaying the
existing street surface.
The streets within James Addition are paved. The existing roadway consists of a 2 Yi' of bituminous
surface approximately 24' feet wide. The pavement is 26 years old and is experiencing block,
alligator, and thermal cracking due to its age. The value of existing housing is positively benefited by
accessing a bituminous paved street in good condition.
The existing street surface has a PCI (Pavement Condition Index) Rating of 42, well below the average
in the City of Otsego. Typically, pavements within PCI Ratings of 50 or less are in their final stages of
useful life and will need to be reconstructed or overlayed in the very near future.
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 March 141h of 2016 at which the study was presented to the residents
along with an estimated assessment amount.
The feasibility report estimated a project cost was $154,000.00. The benefitting property owners are
proposed to be assessed 50% of the project costs and the City would provide the remaining funding.
There were 31 properties and sets the proposed assessments at $2,483.87 per unit. There were 4
properties with secondary accesses. An appraisal was prepared for the project and it was determined
that these 4 properties would receive a lesser benefit and therefor only be assessed $700.00/each.
The actual assessment amounts will be dependent upon the actual project costs but cannot exceed
the total amount at which the residents were notified. The estimated construction cost estimate was
$137,844.00. The low bid was $104,937.66 or 76% of the engineers estimate. Two bids were
received that did not have all the requirements of the advertisement. These two did not affect the
outcome of the bid process.
With the excellent bid prices and the lowest bid from contractor which is local and which has
completed many City of Otsego projects satisfactorily, we recommend awarding the project.
SUPPORTING DOCUMENTS: X ATTACHED NONE
• Engineer's Opinion of Construction Cost
• Resolution 16-45
• Bid Tab
POSSIBLE MOTION
Please word motion as you would like it to appear in the minutes.
Motion to Approve Resolution 2016-45 Accepting Bids for the James Addition Street Improvements and
Awarding the project to Oman Brothers Paving Inc. of Albertville, MN in the amount of $104,937.66.
BUDGET INFORMATION
FUNDING: BUDGETED: X YES
Assessments
201— Pavement Management Fund NO
ACTION TAKEN
❑ APPROVED AS REQUESTED ❑ DENIED ❑ TABLED ❑ OTHER (List changes)
COMMENTS:
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RESOLUTION NO. 2016-45
RESOLUTION ACCEPTING BID
WHEREAS, pursuant to an advertisement for bids for the construction of City of
Otsego, James Addition Street Improvements (87th Street, 88th Street and Packard
Avenue), bids were received, opened and tabulated according to law, and the following
bids were received complying with the advertisement:
Total Base Bid
Omann Brothers Paving, Inc.
$104,937.66
Rum River Contracting Co.
$106,588.70
Hardrives, Inc.
$108,300.00
North Valley, Inc.
$128,566.28
Knife River Corp.
$129,790.90
AND WHEREAS, it appears that Omann Brothers Paving, Inc. of Albertville,
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 Omann Brothers Paving, Inc. of Albertville, Minnesota in the name of the
City of Otsego for the James Addition Street Improvements (87th Street, 88th Street and
Packard Avenue), 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 May, 2016.
Motioned By:
Seconded By:
All in Favor:
Those Opposed:
Jessica Stockamp, Mayor
Tami Loff, Clerk
OT392-2016ResACCEPT BID
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