CR2013-009 Council ReportCity of Hopkins
January 8, 2013 Council Report 2013-009
ACCEPT BIDS, DECLARE COST TO BE ASSESSED AND
ORDER ASSESSMENT HEARING
2013 STREET AND UTILITY IMPROVEMENTS
CITY PROJECT No. 2012-10
Proposed Action
Staff recommends approval of the following motion: adopt Resolution 2012-001, accepting bid;
Resolution 2012-002, Declaring Cost to be Assessed and Ordering Preparation of Proposed
Assessment; and Resolution 2012-003, Resolution for Hearin on n Proposed Assessments, 2013
Street and Utility Improvements, City Project 2012-10.
This action continues an assessable project for street upgrading.
Overview
The bid opening for the 2013 Street and Utility Improvements was held on December 19, 2012.
We included an alternate bid for storm sewer pipe material in the bid package. The low bid for
the preferred material (concrete) was submitted by Ryan Contracting in the amount of
$3,096,330.25. In all, 10 bids were opened. Assessment calculations will be prepared based on
the low bid and include a 5% contingency and 25% indirect cost. Staff recommends accepting the
bids and ordering an assessment hearing for the project on February 5, 2013 followed by award of
bid.
Primary Issues To Consider
• Results of bid opening
• Project costs and assessments
• Schedule
Jo R Bradford, P.E.
City Engineer
Supporting Information
• Abstract of Bids
• Consultants Recommendation
• Resolutions: 2013-001, 2013-002,
2013-003
Financial Impact: $4,064,000 Budgeted Y/N Y Source:S.A. PIR, Cl, Utility Funds
Related Documents (CIP, ERP, etc.): CIP, Feasibility Study
Notes:
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• Results of Bid Opening
This bid included alternate bids for concrete and polypropylene storm sewer pipe. The
bids for each are detailed below:
Concrete Pipe
Ryan Contracting Co.
$3,096,330.25
Northwest Asphalt, Inc.
$3,099,000.20
Kuechle Underground
$3,178,841.99
LaTour Construction, Inc.
$3,193,076.25
S.R. Weidema, Inc.
$3,322,869.78
S.M Hentges & Sons, Inc.
$3,451,090.19
Redstone Construction Co., Inc
$3,457,792.15
Minger Construction, Inc.
$3,600,502.45
Geislinger & Sons, Inc.
$3,763,376.90
Burschville Construction
$4,304,411.85
Polypropylene Pipe
Northwest Asphalt, Inc.
$3,095,006.45
Ryan Contracting Co.
$3,124,285.75
Kuechle Underground
$3,187,940.99
LaTour Construction, Inc.
$3,192,525.25
S.R. Weidema, Inc.
$3,330,401.68
Redstone Construction Co., Inc
$3,459,484.15
S.M Hentges & Sons, Inc.
$3,489,127.19
Minger Construction, Inc.
$3,600,607.45
Geislinger & Sons, Inc.
$3,770,246.90
Burschville Construction
$4,308,701.70
The difference between the concrete and polypropylene bids was $1,323.80. This is such
a small price differential, that staff recommends installing concrete pipe due to its proven
performance in Hopkins.
All bids were submitted with required bid security made by qualified contractors. Ryan
Contracting Co. is a reputable and responsible contractor and has completed similar
projects in the metro area.
Project costs and assessment interest rate
Based on the low bid, 25% overhead costs (engineering, admin, legal), and a 5%
construction contingency the total estimated project cost is $4,064,000.00. This is
considerably lower than the preliminary total estimated project cost of $4,850,000.
The cost saving will result in lower assessments for those properties not subject to the
assessment cap, lower water and sanitary sewer service assessments, and lower debt
burden on the City.
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The total amount to be assessed is $1,019,058.78. The interest rate will be 2 percentage
points about the Total Interest Cost of the bonds to be sold for the project. We anticipate
the rate to be between 3.5% and 5% for this project.
Interest will not accrue until June 1, 2013 and property owners can prepay without interest
through June 30, 2013.
• Schedule
Accept Bids and Order Assessment Hearing January 8, 2013
Assessment Hearing/Award Contract February 5, 2013
Begin Construction May 2013
Construction Complete October 2013
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