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ITEM 5.2 Resolution 17-5506TYU F V MINNEA V DEPARTMENT INFORMATION Request for City Council Action ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Public Works City Engineer Wagner June 26, 2017 PRESENTER(s) REVIEWED BY: ITEM #: City Engineer Wagner City Administrator Flaherty 5.2 AGENDA ITEM DETAILS RECOMMENDATION: Approve Resolution 17-55 Accepting Bids and Awarding the Otsego portion of the project which includes the Quam Avenue and 62nd Street Improvements to Knife River Corporation of Sauk Rapids, MN. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? Yes Yes — was held April 10, 2017 BACKGROUND/J USTI FICATION: 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 inclusion of Quam Avenue Street Improvement in with an adjacent larger City of St. Michael Street Improvement project. Quam Avenue (border with Otsego north to 62nd St) and 62nd St (Quam Avenue east to cul-de-sac) are paved. The existing roadway consists of a 2 %2' of bituminous surface approximately 36 feet wide for Quam Avenue and 24 feet wide for 62nd Street. The pavement is 21 years old and is experiencing extensive block 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 of Quam Avenue and 62nd Street have PCI (Pavement Condition Index) Ratings of 48, well below the average in the City of Otsego. Typically, pavements with PCI Ratings of 50 or less 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 an overlay would not be the prudent construction practice and a much more expensive reclaim and repave would need to occur. Our estimates show this would cost two to three times as much. St. Michael is improving Quam Avenue south of the two cities boundary and connecting this potential project to that much larger project will lower the overall cost to complete the project. 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 April 10 and a feasibility study were presented to the residents and Council. City Council determined to continue forward with advertising for bids with the potential for assessments in accordance with MN State Statue 429. The total estimated project cost is $46,193 and is proposed to be funded using approximately 16% assessments and 84% City funds. The CIP estimate for this project was $57,057. Cost included in the CIP but not needed in the actual project are patching (to be completed by Otsego Public Works) and storm sewer (deemed in good shape). Bids were opened by St. Michael and the bid tab is attached. The lower bidder is Knife River of Sauk Rapids, MN and Otsego's portion of the project would be $39,135.80. Applying 15% for Contract Administration, Engineering and Legal causes the estimated project cost to $45,006.17 or be slightly less than the estimated project cost. SUPPORTING DOCUMENTS ATTACHED: • Bid Tabulation with Otsego's Portion Separated • Resolution Accepting Bids and Allowing Award of Otsego's Portion of the Project POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES: Motion to accept bids and allow St. Michael to award Otsego's portion of the work to Knife River Corporation of Sauk Rapids, MN in the amount of $39,135.80 for Quam Avenue and 62"d Street Overlays (Resolution 2017-55). BUDGET INFORMATION FUNDING: BUDGETED: Pavement Management Fund — 201 Yes: CIP Budget Estimate of $57,057 2017 Quam Avenue and 62nd Street Overlay Project (to by included with St. Michael's 2017 construction project) ENGINEER'S COST ESTIMATE Bid Schedule "A" - 1-1/2" Overlay Item No. Spec. Ref Description Estimated Quantity Unit Unit Price Total Estimated Extension 1 2021.501 MOBILIZATION 1 LS $1,200.00 $ 1,200.00 2 2104.505 REMOVE BITUMINOUS PAVEMENT FULL DEPTH 64 SY $10.00 $ 640.00 3 1 2104.513 SAWING BIT PAVEMENT FULL DEPTH 99 LF $5.00 $ 495.00 4 2211.501 AGGREGATE BASE CLASS 5 ROAD 3 Ton $17.00 $ 51.00 5 2360.501 TYPE SP 9.5 WEARING COURSE MIXTURE 2,C - OVERLAY 529 Tons $65.00 $ 34,385.00 6 2360.501 TYPE SP 9.5 WEARING COURSE MIXTURE 2,C - DRIVEWAY 8 Tons $100.00 $ 800.00 7 2357.502 BITUMINOUS MATERIAL FOR TACK COAT 300 GAL $3.50 $ 1,050.00 8 2575.555 TURF ESTABLISHMENT 1 LS $500.00 $ 500.00 9 2574.525 PULVERIZED TOPSOIL BORROW 26 CY $25.00 $ 650.00 10 2582.502 4" SOLID WHITE PAINT 1984 LF $0.10 $ 198.40 11 2582.502 4" DOUBLE SOLID YELLOW PAINT 992 LF $0.20 $ 198.40 Total - Bid Schedule "A" $40,167.80 Bid Schedule "A" - 1-1/2" Overlay $40,168 15% Administration, Legal, & Engineering $6,025 TOTAL ESTIMATED PROJECT COST $46,193 S:Wlunicipal\AOTSEGO\901\2017\QUAM AVENUE\OT901-2017 EngEst.xlsx Page 1 of 1 E N G I N E E R 5 ILI N P L A. N E R S ESI GNE It Consulling Group, Inc. June 21, 2017 Mr. Steven Bot, PE City Administrator/Public Works Director/City Engineer City of St. Michael 11800 Town Center Drive NE, Suite 300 St. Michael, MN 55376 SUBJECT: S.A.P. 227-127-001 Et Al. — 2017 Street Reconstruction Projects Dear Mr. Bot: SRF No. 10220 Sealed bids were opened for the referenced projects on Tuesday, June 20, 2017 at the St. Michael City Hall. A total of three (3) bids were received. All bids have been reviewed and checked. The bids are tabulated below in order of value: CONTRACTOR TOTAL BID 1. Knife River Corp. $2,073,816.10 2. Hardives, Inc. $2,115,534.00 3. Kuechle Underground, Inc. $3,011,084.73 ENGINEERS ESTIMATE $2,897,966.80 The low bid is 28.4 percent below the final Engineer's Estimate. Approximately two thirds of that reduction can be attributed to lower than expected bituminous pavement costs. It is our opinion that the range and number of bids represent a normal and reasonable bidding distribution. We recommend the Contract be awarded to the apparent low bidder, Knife River Corp., in the amount of $2,073,816.10. Please contact us with any questions or concerns regarding this project. Sincerely, SRF CONSULTING GROUP, INC. Steven P. 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LLoolw o'o"i� 00000 1 RESOLUTION NO. 2017-55 RESOLUTION ACCEPTING BID AND AWARDING CONTRACT WHEREAS, pursuant to an advertisement for bids for the construction of St. Michael 2017 Street Reconstruction Projects, bids were received, opened and tabulated according to law by St. Michael, MN, and the following bids were received complying with the advertisement: Total Base Bid Knife River Corporation $2,073,816.10 Hardrives, Inc. $2,115,534.00 Kuechle Underground, Inc. $3,011,084.73 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 reimburse St. Michael, MN for completion of the Otsego portion of the project (Quam Ave. between border with St. Michael to 62nd Street and 62nd Street East to end of cul-de-sac) according to the plans and specifications therefore approved by the city council and on file in the office of the City Clerk. Adopted by the city council this 26th day of June, 2017. Motioned By: Seconded By: All in Favor: Those Opposed: Jessica Stockamp, Mayor Tami Loff, Clerk ot392-2017 - ResACCEPT BIDAward Cont - Quam