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5.5. SR 06-05-2006 City of Elk River REQUEST FOR COUNCIL ACTION Agenda Section Meeting Date En · eerin June 5, 2006 Item Description HlgWand Road Reconstruction Bids Item Number Introduction The bids for the reconstruction of HlgWand Road between Jackson Street and Proctor Road were opened on Thursday, May 25, 2006. Discussion There were a total of four bids received. Attached is a bid tabulation and the following is a summary of the bidders and their total bids: Bauerly Brothers, Inc. Harddrives, Inc. Northdale Construction Kuechle Underground, Inc. $1,227,776.78 $1,278,336.15 $1,358,327.31 $1,427,875.18 The feasibility study estimated the total construction cost at $1,088,000. The low bid received is approximately 12.8 percent over the feasibility study estimate. The improvements include reconstruction of the roadway, construction of a sidewalk on the north side, and a 10-foot bituminous pathway on the south. Also included in the improvements are extension of sanitary sewer from the east end to approximately Norfolk Street and modifications to the existing watermain. An analysis of the feasibility study estimates versus the low bid indicates the following: Street/Stonn Sewer Sanitary Sewer/Water TOTAL Feasibility $789,140 $298,860 $1,088,000 Bid $973,305.54 $254,471.24 $1,227,776.78 Percentage 23.30/0 -(14.80/0) 12.80/0 The significant increase in the street construction cost is primarily associated with the rising cost of bituminous material and other oil-based construction items. As an example, in the 2005 Street Reconstruction, the price the City paid was $36.50 per ton for bituminous surfacing. In late winter of 2005-2006, the bid for the same item on the Waco/Dodge project was $43 per ton, and on Highland Road the bid price is $52.08 per ton. There have been similar increases, although less dramatic, on other major components of street construction such as aggregate base, concrete curb and gutter, and concrete sidewalk. As discussed at the assessment hearing, the sanitary sewer does not extend all the way to the west end of HigWand Road. In order to serve the most westerly portion of Highland Road, an extension would have to be made from the ChertyWood Hills Addition located west of Proctor Road. We have estimated based on unit prices from Bauerly Companies, Inc. the cost of a change order to add sanitary sewer to complete service along the entire length of Highland Road would be approximately $85,000. This would include tearing up and replacing a portion of 194 th Avenue in the ChertyWood Hills Addition and the boring under Proctor Road (County Road 77). Bauerly Companies, Inc. has successfully completed similar type projects in the City of Elk River and therefore, we are prepared to recommend award to Bauerly Companies, Inc. as the lowest responsible bidder. financial Impact As discussed in the feasibility study, $305,500 has been assessed to the abutting properties for the road construction. The remaining street and storm drainage cost, including the amount over the feasibility estimates are fundable by Municipal State Aid dollars. The improvements to the water system are proposed to be funded by the Elk River Municipal Utilities, and the City Sewer Fund is proposed to pay for the improvements to the sanitary sewer system. Attachments . Bid tabulation . Resolution Accepting the Bid and Authorizing the Execution of the Contract Action Requested Discussion regarding whether or not sanitary sewer and water improvements should be included in the bid award. If they are included in the bid award, additional discussion whether or not a change order should be negotiated to include sanitary sewer at the far westerly end of HigWand Road. Finally, adoption of the attached resolution giving specific direction relative to sanitary sewer and water improvements. Council Action Motion by _ Second by _ Vote Follow Up s: \EngineerImprovProj\2006 Improvement Projects \Highland Road\06 05 06 cc memo2.doc ....-! 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C'4 M ('f') N N 0 0 0 0 0 \0 \C \.0 \.0 \0 ~ M ~ 0- 0 0 0 0 0 V) V') V) VI If) V) N C'l N N N C'4 ("1"') -.:t If) ~ \O-.:t \O~ 0\\0 O~ I:- 00 C'i' ~. co If) ~ - .&g ("f) r--: C'4 M c6' l/") M,., fA r~' ~ Z '-D ~ 0 0 ;;.J N '- V')" ~ -< C"\ Q =:: ~ '-" ~ ~ ~ .J -< e-. 0 ~ .J ~ ~ 0 < ~ ~ I 0 ~ ~ ~ ~ z ~ jooool rJ:l -< >- ~ ~ ~ -< t:.:l ~ ~ ~ -< z ?; -< VJ ~ M ~ r_' ,... ~ ~ -< -< z z " ~ ~ r_' 12 - ~ ~ .g -< -< ~ ~ 1 == ~ E ~ ~ "'0 a RESOLUTION 06- A RESOLUTION FOR THE CITY OF ELK RIVER A RESOLUTION ACCEPTING BID AND AUnIORIZING EXECUTION OF CONTRACT IN THE MATTER OF THE HIGHLAND ROAD IMPROVEMENT OF 2006 \VHEREAS pursuant to a City Council Resolution 06-40, passed at the April 3, 2006 meeting, competitive bids were solicited and received for the I-lighland Road Reconstruction Improvement (project); and \VHEREAS the City Council has considered the amount of the bids and the responsibility of the bidders and determined that Bauerly Companies, Inc. is the lowest responsible bidder; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River, Minnesota: 1. The Mayor and City Administrator are authorized and directed to execute, on behalf of the City, such contract with Bauerly Companies, Inc., as is approved by the City Anomey, for the completion of the Highland Road Reconstruction Improvement according to the approved plans and specifications designed by City Council Resolution. 2. The City Administrator is authorized and directed to forthwith return to all bidders the deposits made with their bids upon execution of the contract specified above. Passed and adopted this 5th day of Jrme, 2006. Stephanie A. Klinzing, Mayor A TIEST: Joan M. Schmidt, City Clerk S:\EngineerImprovProj\2006 Improvement ProjectSYHighland Road\Res accept bid-execute contract.doc