VII.1. Award of Contract 2017 Artery Improvements City Project 2014-09; Stanley (CR2017-036) March 7, 2017 Council Report 2017-036
AWARD OF CONTRACT
2017 ARTERY IMPROVEMENTS
CITY PROJECT 2014-09
Proposed Action
Staff recommends the following motion: adopt Resolution 2017-026 Awarding the Contract, Artery Project,
City Project 2014-09
Overview
The bid opening for the 2017 Artery Improvements was held on February 15, 2017. This project involves
reconstruction of 8th Avenue South from Excelsior Boulevard to Mainstreet; rehabilitation of 8th Avenue
from Mainstreet to the Lake Minnetonka Regional Trail; and access and trail improvements along Excelsior
Boulevard between 5th and 9th Avenues South. Proposed improvements include curb, pavement, water main,
sanitary sewer, drainage, cycle track, trail, sidewalk, lighting, landscaping and aesthetics. The low bid was
$5,198,149.80, submitted by Meyer Contracting. A total of two (2) bids were received. This contractor has a
good reputation with previous similar projects in the metro area. Staff is recommending award of the
project contract to Meyer Contracting.
Primary Issues to Consider
Bid Results and Analysis
Project Costs
Project Schedule
Supporting Information
Consultant Recommendation
Bid Tabulation
Resolutions 2017-026
_________________________________
Nate Stanley, P.E., City Engineer
Financial Impact: $5,698,100 Budgeted: Y/N _Yes___ Source: _Grants, PIR, and Utility funds
_Related Documents (CIP, ERP, etc.): CIP and Engr’s Estimate____
Notes: _________________________________________
Council Report 2017-036
Page 2
ANALYSIS OF ISSUES
• Bid Results and Analysis
Meyer Contracting $5,198,149.80
Geislinger & Sons, Inc. $6,604,559.50
All bids were submitted with required bid security made by qualified contractors. Meyer Contracting is a
reputable contractor who has completed similar projects in the metro area.
• Project Costs
Based on the low bid, indirect costs and contingency the total estimated project cost is $5,698,100. The
following table provides a summary of the final proposed funding for the project:
Funding Source CIP Budget Current Estimate
Grants/Other Governmental Units $2,745,000 $2,780,500
PI-PIR/General Obligation Bonds 1,963,500 1,956,100
Storm Sewer Fund 305,000 493,400
Sanitary Sewer Fund 100,000 126,700
Water Fund 200,000 341,400
Total $5,313,000 $5,698,100
The final proposed funding totals have changed from what was previously estimated by staff. The overall
project cost has increased from the previous estimate by $1,145,000. The project team has conducted
extensive research since the bid opening to determine why this occurred and if we feel the bid is responsible.
What was discovered is that the bidding climate has drastically shifted and is now very favorable for
contractors. The fact that this project has a significant amount of specialty items and will require many
subcontractors made it difficult to bid and was not as attractive as other work in the market, which is
currently flooded with opportunity. Knowing this information we felt that rebidding the project would not
yield a significantly better result, and we could actually end up in a worse position. In consideration of this
information, coupled with the other coordination and commitments the City has made, staff recommends
award of the contract. Given the information we have obtained and through our research we feel the bid
submitted by Meyer Contracting is a reasonable. Project staff has worked with the Finance Director so at the
time of the bond sale for this project this spring the appropriate amount will be bonded.
• Project Schedule
Award Contract March 7, 2017
Begin Construction April 2017
Construction Complete November 2017
H:\HOPK\T16107809\1_Corres\B_To Others\2017_03_02\HOPK Artery_Award Recommendation Letter.docx
March 2, 2017
Mr. Nate Stanley, P.E., City Engineer
City of Hopkins
1010 1st Street South
Hopkins, MN 55343
Re: 8th Avenue Artery Improvements
City of Hopkins, Minnesota
Dear Mr. Stanley:
Bids on the above-referenced project were opened at 11:00 a.m. on February 15, 2017. There
were two bidders for the project; a tabulation of bids received is enclosed. The low bidder on the
project is Meyer Contracting. with a bid of $5,198,149.80. Meyer Contracting has previous
experience on projects of this size and complexity. Based on Meyer Contracting’s experience,
acceptable bid prices, and the competitive bids the City received, we recommend the City of
Hopkins award the project to Meyer Contracting following the Public Assessment Hearing.
The Artery project will be a unique corridor to the Minneapolis / St. Paul metropolitan area. Its
construction entails multiple special features with various fabricators providing components.
Throughout the project fabricator coordination and construction phases of the project, we will
continue to identify opportunities for adhering to the project budget while maintaining the unique
character of the 8th Avenue Artery Corridor.
If you have any questions regarding this award recommendation, please contact me at your
convenience.
Sincerely,
Bolton & Menk, Inc.
Michael J. Waltman, P.E.,
Principal Engineer
Bolton & Menk, Inc.
CONSULTING ENGINEERS & SURVEYORS
Mankato – Fairmont – Sleepy Eye – Burnsville – Willmar - Chaska – Ramsey – Maplewood – Baxter –Rochester MN
Ames –Spencer, IA & Fargo, ND
BID TABULATION
Artery Improvements
City of Hopkins
Hopkins, MN
T16.107809
Bid Taken: Wednesday, Feb 15, 2017 Addendums: #1 - 02/08/17
Time: 11:00 a.m. #2 - 02/09/17
BIDDERS TOTAL AMOUNT BID
1 Meyer Contracting $5,198,149.80
2 Geislinger & Sons, Inc. $6,604,559.50
C:\Users\amyers\Desktop\Nate CC\R2017-026 Award Contract Artery.docx
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2017-026
RESOLUTION FOR AWARD OF CONTRACT
2017 A RTER IMPROVEMENTS
CITY PROJECT 2014-09
BE IT RESOLVED BY THE CITY COUNCIL OF HOPKINS, MINNESOTA, that
the lowest bid of Meyer Contracting in the amount of $5,198,149.80 is the lowest responsible bid
for the 2017 Artery Improvements, City Project 2014-09, and the Mayor and City Manager are
hereby authorized and directed to enter into a contract with said bidder for and on behalf of the
City.
Adopted by the City Council of the City of Hopkins, Minnesota, this 7th day of March, 2017.
By___________________________________
Molly Cummings, Mayor
ATTEST:
_____________________________________
Amy Domeier, City Clerk