4.8. SR 07-21-2014 City of
Elk Request for Action
River
To Item Number
Mayor and City Council 4.8
Agenda Section Meeting Date Prepared by
Consent July 21, 2014 Justin Femrite, P.E., City Engineer
Item Description Reviewed by
Resolution Rejecting Bids and Ordering Re- Jeremy Barnhart, COD Deputy Director
Advertisement of Bids for Nature's Edge Business Reviewed by
Center Phase II Cal Portner, City Administrator
Action Requested
Adopt,by resolution,rejection of bids for Nature's Edge Business Center,Phase II and direction to
amend the project completion date and re-advertise the project for bids.
Background/Discussion
As detailed in the attached letter from our Project Manager, Craig Jochum,bids were received on July 15,
2014, for the construction of public improvements in Phase II of the Natures Edge Business Center.
The memo details a number of concerns relating to proceeding with the award of the bid. A component
that has delayed our schedule is a permit for wetland modifications form the US Corp of Engineers. This
permit has not yet been received. Based on all considerations, staff is proposing to re-advertise the
project with a revised completion date in order to give more time to procure the necessary permit and
allow for flexibility in the construction timeframe.
The revised project will allow for late-season grading and utility installation in 2014 with final roadway
improvements to be completed by June 2015. This revised schedule will still allow for the immediate sale
of all new lots and early 2015 construction of any potential building improvements.
Pending approvals, staff is proposing the following revised schedule to facilitate the completion of the
project:
Advertise Project for Bids July 25, 2014
Open Bids August 22, 2014
Consider Bids and Award Contract September, 2014
Begin Construction September, 2014
Finish Construction June, 2015
Financial Impact
There is no cost associated with the requested action. When new bids are received we will prepare a
comprehensive list of costs and breakdown of funding sources.
Attachments
• Bid Analysis Letter from Project Manager
• Resolution
P a w E A E U s r
NaA f RE]
Hakanson Main Office:
3601 Thurston Avenue, Anoka, MN 55303 35
Anderson Phone: 763/4www.ha Fax: /427-0520
I A
www.haa-inc.com
July 15, 2014
Justin Femrite, City Engineer
City of Elk River
13065 Orono Parkway
Elk River,MN 55330
RE: Natures Edge Business Center—Phase 2
Bid Evaluation
Dear Mr. Femrite:
As you are aware, construction bids for the above referenced project were opened at 11:00 a.m. on July 15, 2014
at the Elk River City Hall. A total of 6 bids were received and opened. The following is a summary of the Base
Bids:
Northwest Asphalt,Inc. $1,445,592.94
Douglas-Kerr Underground,Inc. $1,558,196.24
Burschville Construction,Inc. $1,578,374.20
J.R. Ferche, Inc. $1,709,099.07
Northdale Construction Company, Inc. $1,858,623.96
Peterson Companies $1,867,345.93
This project also included an Alternate Bid. The Alternate Bid included the construction of the improvements on
Twin Lakes Road between the south property line and the intersection of 168 ' Avenue and Twin Lakes Road.
The Alternate Bid improvements included the sanitary sewer, watermain, concrete curb and gutter, bituminous
surfacing, and striping. The storm sewer for this segment of road was included in the Base Bid to provide an
outlet for Pond 3. The following is a summary of the Alternate Bids:
Northwest Asphalt, Inc. $203,361.99
Peterson Companies $206,780.43
Douglas-Kerr Underground,Inc. $212,906.79
Northdale Construction Company,Inc. $221,492.44
Burschville Construction,Inc. $228,235.00
J.R.Ferche, Inc. $237,103.25
Northwest Asphalt, Inc. of Shakopee, Minnesota was the low bidder for both the Base Bid and the Alternate Bid.
We have requested references for Northwest Asphalt, Inc. Reference checks will be performed once they are
received. Tabulations of Northwest Asphalt's proposed suppliers and subcontractors were not included with the
bid.This information has also been requested.
We would have expected more than 6 bidders on this project. Based on the feedback from contractors' during the
bidding process it appears that many contractors were concerned about the project substantial completion date of
October 24, 2014 and chose not to bid this project.
As you are aware the US Corp of Engineers has not yet issued the wetland permit for this project. Although it
appears that, based on discusses with the Corp project manager,the permit will be issued in August of 2014 there
is no guarantee since the Corp is not mandated by any legal deadlines.
We compared this project with the unit bid prices for Natures Edge Business Center Phase 1 which was
constructed in the year 2012. Using the unit bid prices from the Phase 1 project the total Base Bid for this project
would be$1,327,097 or approximately 8.2% lower.
Given the bid comparison discussed above and the current bidding climate it would appear that the bid received
from Northwest Asphalt is reasonable. However if the US Corp wetland permit is not received in a timely manner
it could lead to project delays and potential change orders. For this reason the City may want to consider
rebidding this project with an extended substantial completion date.If this project is rebid we would recommend a
substantial completion date of June 30,2015.A copy of the bid tabulation and bid comparison is attached for your
use.
If you have any questions please call me at 763-852-0485.
Sincerely,
Ikans,on Ind rson
Craig J.J c In J,P.E.
1711IHakanson
Anderson
City of
Elk
River
Resolution 14-
A Resolution of the City of Elk River Rejecting Bids and Ordering Re-
Advertisement for Bids in the Matter of the Nature's Edge Business Center,
Phase 11 Improvements
WHEREAS, Hakanson Anderson Inc,at the direction of the City Engineer, advertised the
approved plans and specifications for the Nature's Edge Business Center,Phase II
Improvements,and bids were received on July 15, 2014, and
WHEREAS,The City has been unsuccessful in obtaining the necessary permits to proceed
with the project on the original schedule.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk
River,Minnesota, as follows:
1. The bids received on July 15, 2014, are hereby rejected.
2. Previously approved plans and specifications shall be modified to amend the
completion date.
3. The City Clerk shall prepare and obtain the publication of an advertisement for bids for
the making of the improvement pursuant to the attached plans and specifications. The
advertisement shall be published for 21 days, shall specify the work to be done,and
shall state that the bids will be received by the City Clerk until 11:00 a.m. on August 22,
2014, at which time the bids will be publicly opened in the Council Chambers of the
City Hall by the City Clerk and the City Engineer and will then be tabulated for
consideration by the City Council at a meeting thereof at 6:00 p.m. on September 2,
2014,in the City Council Chambers at City Hall. No bids will be considered unless
sealed and filed with the City Clerk and accompanied by a cash deposit, cashier's check,
bid bond, or certified check payable to the City of Elk River in the amount of 5% of the
amount of such bid.
Passed and adopted this 21"day of July 2014.
John J. Dietz,Mayor
ATTEST:
Tina Allard, City Clerk
P O w E R E U 9 1
1`4 U