CR 09-044 Award of Bid - 2009 Street and Utility Improvement Project - City Project 08-10June 17, 2008
G ITY OF
4a
H0PKINS
Council Report 2009 -044
AWARD OF BID
2009 STREET AND UTILITY IMPROVEMENT PROJECT
CITY PROJECT 08 -10
Proposed Action
Staff recommends the following motion: "Move that Council adopt Resolution 2009 -30 Resolution for Award
of Bid 2009 Street and Utility Improvement Project, CityProject 08 -10"
This action continues an assessable project for street improvements.
Overview
The bid opening for the 2009 Street and Utility Improvement Project was held on May 7, 2009. The low bid
was $1,554,289.9483, which is $513,300 less than the final engineer's estimate. In all, 12 bids were opened
indicating a very competitive construction market. The low bidder is Kuechle Underground Inc, from
Kimball, MN. This contractor has a good reputation with previous similar projects in the metro area. Staff
is recommending award of the project contract to Kuechle Underground, Inc.
Primary Issues to Consider
• Project costs and assessments
• Bid tabulation and analysis
• Project schedule
Supporting Information
■ Final assessment rates
&d,R. Bradford, P.E., City Engineer
■ Resolutions 2009 -30
Financial Impact: $2,137,150 Budgeted: Y/N Yes Source: Special Assessments, PIR, and
Utility funds _Related Documents (CIP, ERP, etc.): CIP and Engr's Estimate
Notes:
\ \Lisa \engineering \Council Reports\2009 \CR2009 -044 Award Bid 2009 Street Imp.doc
Council Report 2009 -044
Page 2
ANALYSIS OF ISSUES
• Project costs and assessments:
Based on the low bid, 25% overhead costs (engineering, admin, legal), and a 10% construction contingency
the total estimated project cost is $2,137,150. The assessable amount is calculated based on 70% of the
assessable roadway costs ($999,926). When the assessment cap for residential units is considered, total
assessments for street improvements will be approximately $493,523.31. This does not include assessments
for water and sanitary sewer services.
The following table shows the anticipated assessment rates.
Property Type
Preliminary
Assessment Rate
Current Uncapped
Assessment Rate
Applied
Assessment Rate
Commercial
$157.67 per FF
$108.96 per FF
$108.96 per FF
Residential
$5,613.60 per Unit
$8,716.80 per FF
$5,613.60 per FF
There were significant savings in the water and sanitary sewer service replacement costs. The table below
illustrates the preliminary and current costs.
Utility Service Type
Preliminary Shared
Cost
Current Unshared
Cost
Current Shared
Cost
Water
$425 - $600 per Unit
$600 - $1100 per Unit
$300 - $550 per Unit
Sanitary Sewer
$400 - 600 per Unit
$400 - $600 per Unit
$200 - $300 per Unit
The total utility cost to the homeowners will be in the range of $500 to $850. This is approximately $300
lower than estimated in the feasibility report.
It is important to note that since we are assessing this project after it is completed, the final assessable costs
will be based on the actual costs incurred. Therefore, these estimates will likely change slightly.
The following is a breakdown summary of the funding for the project:
Assessments
$493,523
PIR
506,403
Utility Funds
1,137224
Total Project
$2,137,150
Because bids were so low and contractors are very competitive, we expect that an effort will likely be made
to obtain extras during the construction period. For that reason, we have continued to include a 10%
contingency in our budgeting for this project. We will do all that we can to minimize extras as we move
forward.
Council Report 2009 -044
Page 3
• Bid tabulation and analysis:
Kuechle Underground, Inc.
$1,554,289.94
Valley Paving
1,565,978.67
Nodland Construction Co., Inc.
1,604,358.94
Northdale Construction Co. Inc
1,769,074.72.
Midwest Asphalt
1,881,423.00
S.R. Weidema
1,906,983.45
Arcon Construction
1,911,780.23
Veit & Company
1,960,734.46
Palda and Sons, Inc.
1,969,057.99
Burschville Construction, Inc.
2,081,016.76
Park Construction Co.
2,157,947.67
C.S. McCrossan Construction
2,277,318.00
All bids were submitted with required bid security made by qualified contractors. Kuechle Underground is a
reputable contractor who has completed similar projects in the metro area.
The storm sewer alternate was for the use of HDPE pipe instead of concrete. The alternate was proposed as
a possible cost savings for the project. The low bidder's price for concrete was lower than for the HDPE,
therefore we are recommending award to Kuechle Underground, Inc based on the concrete storm sewer
option.
• Project Schedule:
Award Contract May 19, 2009
Begin Phase 1 Construction June 1, 2009
End Phase 1 Construction October 2009
Begin Phase 2 Construction May 2010
Construction Complete October 2010
Assessment Hearing October 2010
• BO L._TON 8t. M r-= N K
it • Consulting Engineers & Surveyors
12224 Nicollet Avenue Burnsville, MN 55337
Phone (952) 890 -0509 • Fax (952) 890 -8065
www.bolton- menk.com
May 12, 2009
Mr. John Bradford, P.E., City Engineer
City of Hopkins
1010 I Street South
Hopkins, MN 55343
Re: 2009 Street & Utility Improvements
City of Hopkins, Minnesota
City Project No. 08 -10
BMI Project No. T16.100402
Dear Mr. Bradford:
1 N C®
Bids on the above - referenced project were opened at 10:00 a.m. on May 7, 2009. There were
twelve (12) bidders for the project; a detailed bid abstract is enclosed. The low bidder on the
project is Kuechle Underground Inc. out of Kimball. Their bid amount is $1,554,289.94. The
engineer's estimate for the project is $2,067,495.
Kuechle Underground is a reputable contractor with previous similar experience in the metro
area. Based on their experience and acceptable bid prices, we recommend the City of Hopkins
award the project to Kuechle Underground Inc.
If you have any questions regarding this award recommendation, please do not hesitate to call.
Sincerely,
BOLTON & MENK, INC.
Sarah ,. ippke, P.E.
Project Engineer
cc: Marcus Thomas, P.E., Project Manager
DESIGNING FOR A BETTER TOMORROW
Bolton & Menk is an equal opportunity employer.
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2009 -30
RESOLUTION FOR AWARD OF BID
2009 STREET AND UTILITY IMPROVEMENT PROJECT
CITY PROJECT 08 -10
BE IT RESOLVED BY THE CITY COUNCIL OF HOPKINS, MINNESOTA, that the
lowest bid of Kuechle Undergound, Inc. in the amount of $1,554,289.94 is the lowest
responsible bid for the 2009 Street and Utility Improvement Project, City Project 08 -10,
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 19 day of May,
2009.
ATTEST:
Terry Obermaier, City Clerk
Eugene J. Maxwell, Mayor
\\ Lisa\ engi nee ring \Resolutio ns\2009 \R2009 -30 Award Bid 2009 Street Imp.doc
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