CR 05-052 Bids Assessment Hearing - 2005 Street and Utility Improvment Project
CITY OF
m
April 19, 2005
HOPKINS
Council Report 2005-052
ACCEPT BIDS, DECLARE COST TO BE ASSESSED AND
ORDER ASSESSMENT HEARING
2005 STREET AND UTILITY IMPROVEMENT PROJECT
LOT 800 RECONSTRUCTION
CITY PROJECT No. 04-10 & 04-11
Proposed Action
Staff recommends approval of the following motion: adopt Resolution 2005-037. accepting bid
for 2005 Street & Utilitv Improvement Proiect & Lot 800 Reconstruction. Resolution 2005-038.
Declaring Cost To Be Assessed. and Ordering Preparation of Proposed Assessment. Resolution
2005-039. Resolution for Hearing on Proposed Assessments. 2005 Street and Utilitv
Improvements. City Proiect 04-10.
This action continues an assessable project for street upgrading.
Overview
The bid opening for the 2005 Street and Utility Improvement Project and Lot 800 Reconstruction
was held on April 12, 2005. The low bid was $954,510.18, which is 14% below the final
engineer's estimate. In ailS bids were opened indicating a competitive construction market. We
attribute much of the projected saving to this competitive climate. Assessment calculations will
be prepared based on the low bid submitted by Northwest Asphalt Inc. We are projecting the
assessment rate to be lower than the cap for the Jackson Ave N, Sunnyside Lane, Van Buren Ave
N, and Shadyside Circle. Staff is now recommending acceptance of the bids and ordering an
assessment hearing for the project on May 17, 2005 followed by award of bid no later than June
1, 2004.
Primarv Issues To Consider
. Results of bid opening
.. Project costs and assessment interest rate
. Bid Alternates
. Schedule
. Recommendation
Supportine: Information
. Abstract of Bids
. Reso ution: 2005-037, 005-038,2005-039
R Bradford, P .E.
Assistant City Engineer
Financial Impact: $ 1.288.588.74
Related Documents (CIP, ERP, etc.):
Notes:
Budgeted Y/N Y Source:S.A. PIR. CI. Utilitv Funds
CIP. Feasibilitv Studv
Analvsis ofIssnes
. Results of Bid Opening
Northwest Asphalt
Park Construction
Bituminous Roadways
Hardrives
Midwest Asphalt
$954,510.18
$982,746.00
$987,330.35
$1,036,935.90
$1,061,176.40
All bids were submitted with required bid security made by qualified contractors.
Northwest 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 $1,288,588.74. The assessable
amount is calculated based on 70% of the assessable roadway costs of $760,471.07. The
total amount to be assessed on this project is $422,457.36.
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
Monroe/Madison
Jackson/Sunnyside
Van Buren/Shadyside
70% Assessment Rate
$84.85
$39.45
$47.15
Proposed Assessment Rate
$55.83*
$39.45
$47.15
* The cap rate is applicable to this area
As directed by the Council, the assessment cap was applied to the Regency development.
The proposed rates shown in the table above were used to calculate the total assessment
rate of $1,208.07 per unit. This is approximately $457 less than the preliminary
assessments.
. Water Services
The homeowner cost for the water service replacements will be $24 per foot of service
pipe plus $647 for the curb stop & box. This is approximately $150 more than the
preliminary estimate. Final amounts for each resident will be calculated and included in
the final assessment role.
E:\Engineering-Supervisor\Council Reports\2004\CR2005-052
I
. Schedule
Accept Bids and Order Assessment Hearing
Assessment Hearing/Award Contract
Begin Residential Construction
Begin Lot 800 Construction
Construction Complete
. Recommendation
Staff recommends the council accept the low bid submitted.
April 19, 2005
May 17, 2005
June 2005
July 18, 2005
October 2005
E:\Engineering-Supervisor\Council Reports\2004\CR2005-052
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2005-037
RESOLUTION ACCEPTING BID
WHEREAS, pursuant to an advertisement for bids for the improvement of Madison Circle,
Madison Avenue N, Monroe Avenue N, Monroe Place, Jackson Avenue N, Sunnyside Lane, Van
Buren Avenue N, and Shadyside Circle, and Lot 800 Reconstruction, bids were received, opened
and tabulated according to law, and the following bids were received complying with the adver-
tisement:
Northwest Asphalt
Park Construction
Bituminous Roadways
Hardrives
Midwest Asphalt
$954,510.18
$982,746.00
$987,330.35
$1,036,935.90
$1,061,176.40
AND WHEREAS, it appears that Northwest Asphalt, Inc. of Shakopee, 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
Northwest Asphalt, Inc. of Shakopee, 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 ofthe 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 19th day of April, 2005.
Eugene 1. Maxwell, Mayor
Terry Obermaier, City Clerk
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2005-038
RESOLUTION DECLARING COST TO BE ASSESSED, AND ORDERING
PREPARATION OF PROPOSED ASSESSMENT
WHEREAS, costs have been determined for the improvement of Madison Circle, Madison
Avenue N, Monroe Avenue N, Monroe Place, Jackson Avenue N, Sunnyside Lane, Van Buren
Avenue N, and Shadyside Circle and the bid price for such improvement is $954,510.18, and the
expenses incurred or to be incurred in the making of such improvement amount to $334,078.56
so that the total cost ofthe improvement will be $1,288,588.74.
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 $866,131.38 and the portion of the cost to be assessed against benefited property own-
ers is declared to be $422,457.36.
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,
2006, 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 of the 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 19th day of April, 2005.
Eugene J. Maxwell, Mayor
Terry Obermaier, City Clerk
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2005-039
RESOLUTION FOR HEARING ON PROPOSED ASSESSMENT
WHEREAS, by a resolution passed by the council on April 19 , 2005 the city clerk was directed
to prepare a proposed assessment of the cost of improving Madison Circle, Madison Avenue N,
Monroe Avenue N, Monroe Place, Jackson Avenue N, Sunnyside Lane, Van Buren Avenue N,
and Shadyside Circle,
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 17th day of May, 2005 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 af-
fected by such improvement will be given an opportunity to be heard with reference to such
assessment.
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 ofthe 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 19th of April, 2005.
Eugene J. Maxwell, Mayor
Terry Obermaier, City Clerk