CR 06-054 Accept Bids, Declare Cost to be Assessed & Order Assessment Hearing 2006 Str & Util Imp Proj
CiTY OF
m
May 2, 2006
HOPKINS
Council Report 2006-054
ACCEPT BIDS, DECLARE COST TO BE ASSESSED AND
ORDER ASSESSMENT HEARING
2006 STREET AND UTILITY IMPROVEMENT PROJECT
CITY PROJECT No. 05-10
Proposed Action
Staff recommends approval of the following motion: adopt Resolution 2006-033. accepting bid
for 2006 Street & Utilitv Improvement Proiect. Resolution 2006-034. Declaring Cost To Be
Assessed. and Ordering Preparation of Proposed Assessment. Resolution 2006-035. Resolution
for Hearing on Proposed Assessments. 2006 Street and Utilitv Improvements. City Proiect 05-10.
This action continues an assessable project for street upgrading.
Overview
The bid opening for the 2006 Street and Utility Improvement Project was held on April 25, 2006.
The low bid was $742,378.80, which is right at the final engineer's estimate. In all 4 bids were
opened indicating a competitive construction market. Assessment calculations will be prepared
based on the low bid submitted by Midwest Asphalt. We are projecting the assessment rate to
lower than the cap for l7'h Avenue South. Staff is now recommending acceptance of the bids and
ordering an assessment hearing for the project on June 6, 2006 followed by award of bid no later
than June 20, 2006.
Primarv Issues To Consider
. Results of bid opening
. Project costs and assessment interest rate
. Bid Alternates
. Schedule
. Recommendation
Supportine: Information
. Abstract of Bids
. Resolution: 2006-033,20 6-034,2006-035
fi-
n R Bradford, P.E.
Assistant City Engineer
Financial Impact: $ 1.002.211.38
Related Documents (CIP, ERP, etc.):
Notes:
Budgeted YIN Y Source:S.A. PIR. CI. Utility Funds
CIP. Feasibility Study
E;IEngineering-SupervisorICouncil Reports\20041CR2005-052
. Results of Bid Opening
Midwest Asphalt
Hardrives
Northwest Asphalt
Bituminous Roadways
$742,378.80
$776,782.27
$788,233.15
$785,938.65
All bids were submitted with required bid security made by qualified contractors. Midwest
Asphalt is a reputable and responsible contractor and has completed similar projects
within the metro area.
. Project costs and assessment interest rate
Based on the low bid, 25% overhead costs (engineering, admin, legal), and a 10%
construction contingency the total estimated project cost is $1,002,211.38. The assessable
amount is calculated based on 70% of the assessable roadway costs of $497,968.20. The
total amount to be assessed on this project is $366,445.90.
Staff recommends applying an annual interest rate of 7% to this assessment. This
interest rate was set in 2002 and is scheduled to be reviewed every 3 years. The following
table shows the anticipated assessment rate for each segment.
Assessment Area
18'n/19'n Ave, S of 1st (ea.)
18'"/19'" Ave, N of 1st St.
20'n Avenue South
17'" Avenue South
70% Assessment Rate
$7,182.45
$99.21
$80.07
$18.87
Proposed Assessment Rate
$4,818.40*
$60.23*
$60.23*
$18.87
* The cap rate is applicable to this area
. Water Services
The homeowner cost for the water service replacements will be $20.30 per foot of service
pipe plus $365 for the curb stop & box. This is approximately $360 less than the
preliminary estimate. Final amounts for each resident will be calculated and included in
the final assessment role.
E;\Engineering-SupervisorICouncil Reports\20041CR2005-052
. Schedule
Accept Bids and Order Assessment Hearing May 2, 2006
Assessment Hearing! A ward Contract June 6, 2006
Begin Residential Construction June 2006
Construction Complete September 2006
. Recommendation
Staff recommends the council accept the low bid submitted.
E;\Engineering-SupervisorICouncil Reports\2004ICR2005-052
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1002 $1500 $1503000 $2065 $2069130 1410 $1412820 $945 $9468'lO $1100 $1703400
liiii2 $1800 $1803600 $1170 $1172340 $2275 $22195.50 $1350 $1352700 $1200 $1202400
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li6 $4500 $:297000 $5370 $3SoU2O $5450 $359700 S5235 $3455.10 $5000 $330000
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258 $400 $115200 $615 $177120 8640 $184320 $2l;O S80640 8650 $18nOO
'32 S2OO00 $640000 $15500 $496000 $46500 $1486000 '15000 $480000 $2S000 $800000
7iS2 $350 $251nOO, - $67S $48$4800 10 S2229520 SS35 .47720 SSOO .~OO
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2006 STREET AND UTILITY IMPROVEMENTS
CITY OF HOPKINS, MN
CITY PROJECT NO. 501-49400-5112.0510
ABSTRACT OF BIDS
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2006-033
RESOLUTION ACCEPTING BID
WHEREAS, pursuant to an advertisement for bids for the improvement of 18'h, 19'h, and 20'h
Avenues South and 1st Street South, bids were received, opened and tabulated according to law,
and the following bids were received complying with the advertisement:
Midwest Asphalt
Hardrives
Northwest Asphalt
Bituminous Roadways
$742,378.80
$776,782.27
$788,233.15
$785,938.65
AND WHEREAS, it appears that Midwest Asphalt Corporation of Hopkins, Minnesota is the
lowest responsible bidder,
NOW THEREFORE, BE IT RESOLVED by the City Council of Hopkins, Minnesota, that:
I. The mayor and city manager are hereby authorized and directed to enter a contract with Mid-
west Asphalt Corporation of Hopkins, Minnesota in the name of the city of Hopkins for the
improvements noted above according to the plans and specifications therefore approved by the
city council and on file in the office of the city clerk.
2. The city clerk is hereby authorized and directed to return forthwith to all bidders the deposits
made with their bids, except that the deposits of the successful bidder and the next lowest bid-
der shall be retained until a contract has been signed.
Adopted by the City Council this 2nd day of May, 2006.
Eugene J. Maxwell, Mayor
Terry Obermaier, City Clerk
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2006-034
RESOLUTION DECLARING COST TO BE ASSESSED, AND ORDERING
PREPARATION OF PROPOSED ASSESSMENT
WHEREAS, costs have been determined for the improvement of 18'11, 19'h, and 20'h, Avenues
South and 1st Street South, and the bid price for such improvement is $742,378.80, and the ex-
penses incurred or to be incurred in the making of such improvement amount to $259,832.78 so
that the total cost of the improvement will be $1,002,211.38.
NOW, THEREFORE, BE IT RESOLVED by the City Council of Hopkins, Minnesota, that:
1. The portion of the cost of such improvement to be paid by the city is hereby declared to
be $635,765.48 and the portion of the cost to be assessed against benefited property own-
ers is declared to be $366,445.90.
2. Assessments shall be payable in equal annual installments extending over a period of 10
years, the first of the installments to be payable on or before the first Monday in January,
2007, and shall bear interest at the rate of 7 percent per annum from the date of the adop-
tion of the assessment resolution.
3. The city clerk, with the assistance ofthe city engineer, shall forthwith calculate the proper
amount to be specially assessed for such improvement against every assessable lot, piece
or parcel of land within the district affected, without regard to cash valuation, as provided
by law, and he shall file a copy of such proposed assessment in his office for public in-
spection.
4. The clerk shall upon the completion of such proposed assessment, notify the council
thereof.
Adopted by the City Council this 2nd day of May, 2006.
Eugene J. Maxwell, Mayor
Terry Obermaier, City Clerk
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2006-035
RESOLUTION FOR HEARING ON PROPOSED ASSESSMENT
WHEREAS, by a resolution passed by the council on May 2nd, 2006 the city clerk was directed
to prepare a proposed assessment of the cost of improving 18'h, 19'h, and 20'h Avenues South,
and 1 st Street South,
AND WHEREAS, the clerk has been directed to complete the proposed assessment and put it on
file in her office for public inspection,
NOW, THEREFORE, BE IT RESOLVED by the City Council Hopkins, Minnesota, that;
1. A hearing shall be held on the 6'h day of June, 2006 in the city hall at 7:30 p.m. to pass upon
such proposed assessment and at such time and place all persons owning property affected
by such improvement will be given an opportunity to be heard with reference to such as-
sessment.
2. The city clerk is hereby directed to cause a notice of the hearing on the proposed assessment
to be published once in the official newspaper at least two weeks prior to the hearing, and
she shall state in the notice the total cost of the improvement. She shall also cause mailed
notice to be given to the owner of each parcel described in the assessment roll not less than
two weeks prior to the hearings.
3. The owner of any property so assessed may, at any time prior to certification of the assess-
ment to the county auditor, pay the whole of the assessment on such property, with interest
accrued to the date of payment, to the assessment clerk, except that no interest shall be
charged if the entire assessment is paid within 30 days from the adoption of the assessment.
He may at any time thereafter, pay to the assessment clerk the entire amount of the assess-
ment remaining unpaid, with interest accrued to December 31 of the year in which such
payment is made. Such payment must be made before November 15 or interest will be
charged through December 31 of the succeeding year.
Adopted by the council this 2nd of May, 2006.
Eugene J. Maxwell, Mayor
Terry Obermaier, City Clerk