CR2002-56 Accept bids - st proj
CITY OF
March 28, 2002 ~ Council Report 2002-56
HOPKINS
. ACCEPT BIDS
ORDER ASSESSMENT HEARING
2002 STREET AND UTILITY IMPROVEMENT PROJECT
PROJECT 01-10
Proposed Action
Staff recommends the following motion: "Move that Council adopt Resolution 2002-29, Resolution for
Hearinq on Proposed Assessments, 2002 Street and Utility Improvement Project, City Project 01-10.
This action continues an assessable project for street upgrading.
Overview
The bid opening for the 2002 Street and Utility Improvement Project was held on March 26, 2002.
Assessment calculations have been prepared based on the low bid submitted by Valley Paving.
Staff is now recommending acceptance of the bids and ordering an assessment hearing for the
project on May 7,2002 followed by award of bid no later than June 4,2002.
Primary Issues to Consider
. Bid tabulation and analysis
. . Project costs and assessment interest rate change
. Schedule
Supporting Information
. Engineer's letter of recommendation for award
. Bid tabulation
. Resolution 2002-29
Jt:;J15~
Steven G. Bot
Assistant City Engineer
. Financial Impact: $ 801 ,052.07 Budgeted: Y/N Yes Source: S.A, PIR, Utility Funds
Related Documents (CIP, ERP, etc.): CIP Notes:
Council Report 2002-56
Page 2
.AnaIYSiS of Issues
Bid tabulatIon and analysIs:
Bidder Total Bid
Valley Paving $593,371.92
Northwest Asphalt $598,199.71
Hardrives, Inc. $631,188.99
Midwest Asphalt $644,975.91
Bituminous Roadways, Inc. $715,654.20
C.S. McCrossan $730,778.30
Engineer's Estimate $791,250.00
All bids were submitted with required bid security made by qualified contractors. Valley Paving is
a reputable and responsible contractor and has completed similar projects within the metro area.
. Project costs and assessment interest rate change:
Based on the low bid, engineering costs, admin/legal fee and a 10% construction contingency, the
total estimated project cost is $801 ,052.07. The assessable amou nt is $440,041 .81 .
Due to the excellent bids that were submitted, most assessments will be reduced from the
pending assessment amounts. Proposed final assessments for residents along 11th Avenue
. South, located south of the Soo Line Railroad Bridge are anticipated to be approximately 25%
higher than the pending amounts due to many design features added to that segment over the
course of final design. Because of the high number of units in this area, the increase in
assessments will be around $50 per unit or less.
Staff has included a proposed assessment interest rate reduction to 7%. The current interest rate
on assessments is 8%. The proposed interest rate is based on several considerations.
Historically, our improvement bond rates have been from 4% to 7%. Most cities either set rates
on/about 2.5% above market rates or set a fixed rate of 7 t07.5%. Either rate helps cover costs
and shortfalls in collections. In the best case, we project that bond rates will be at least 4% in the
future. We need to establish a rate that will cover our costs and cover collection shortfalls.
Finance recommends setting a fixed rate of 7% on assessments with a review of this rate every
three years to ensure coverage of costs.
. Schedule:
Bid Opening March 26, 2002
Accept Bids and Order Assessment Hearing April 2, 2002
Assessment Hearing May 7,2002
Award Contract June 4, 2002
. Construction Begins June, 2002
Construction Ends October, 2002
03/27/2002 10:.40 FAX 9528908065 BOLTON & MENK -'j Hopkins (eH ) I4i 0021002
...
eOL- -rON&1VI E: I'JI<. , II"JC. .
Consulting.EngineelS & Surveyors.
. . 1515 East Highway l3. Burhsville, MN 55337-6857
March 27, 2002 Phone (952) 890-0509. FAX (952) 890-8065
Mr. Steve Bot, P .E.
Assistant City Engineer
1010 First Street South
Hopkins, I\.1N 55343
RE: Receipt of Bids and Award of Contract .
2002 Street and Utility Improvements
City of Hopkins, MN
S.AP. 132-346-017
CitY Project No. 01-10
BI\1I Project No. Tl1.20635
Dear Mr. Bot:
Bids on the above-referenced projectwere received al1dopened at Hopkins City Hall at 10:00 a.m.
on March 26,2002. An Abstract of Bids hasbeenemailed to you
. The low bidder on the project, Valley Paving, is a reputable and responsible contractor and has
completed similar projects within the metro area. Therefore, we would recommend award of the
2002 Street and Utility Improvements to the low bidder, Valley Paving, in the amount of
$593,371.92, at the April 2, 2002 Council Meeting.
If you have any questions or would require anyadditionlil infonnation, please call. Also, please let
me know if you would require my assistance at the April 2nd Council Meeting.
Sincerely,
BOLTON & MENK, INC.
~CtA~ A- I~~
Marcus A. Thomas, P.E.
Proj ect Manager
.
MANKATO · FAIR MONT · SLEEPY EYE · BURNSVILLE · WILLMAR
AMES, IA · LIBERTY, MO
An Equal Opportunity Emplover
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. CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2002-29
RESOLUTION FOR HEARING ON PROPOSED ASSESSMENTS
2002 STREET AND UTILITY IMPROVEMENT PROJECT
CITY PROJECT 01-10
WHEREAS, the Assistant City Engineer has prepared assessments for the 2002
Street and Utility Improvement Project, City Project 01-10, and
WHEREAS, the City Clerk has notified the Council that such proposed
assessments have been completed and filed in her office for public inspection.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of
Hopkins, Minnesota:
1. A hearing shall be held on the ih day of May, 2002, at 7:30 P.M. in the
Council Chambers of the City Hall at 1010 First Street South to pass upon
. such proposed assessments and at such time and place all persons owning
property affected by such improvements will be given the opportunity to be
heard with reference to such assessment.
2. The City Clerk is hereby directed to cause a notice of hearing on the
proposed assessments to be published in the official newspaper at least two
weeks prior to the hearing and to mail notices to the owners of all property
affected by said assessments.
3. The notice of hearing shall state the date, time, and place of the hearing, the
general nature of the improvement, the area to be assessed, the total cost of
each of such improvements, and that the proposed assessment roll is on tHe
with the clerk and that written or oral objections will be considered.
4. The portion of the cost to be assessed against benefited property owners is
declared to be $440,041.81.
5. Assessments shall be payable in annual installments extending over a period
of 10 years and shall bear interest at a rate of 7 per cent per annum.
Adopted by the City Council of the City of Hopkins this 2nd day of April, 2002.
By
Eugene J. Maxwell, Mayor
ATTEST:
.
Terry Obermaier, City Clerk